COTI Launches Layer 2 Testnet with Ecosystem Support

COTI has introduced its Layer 2 (L2) testnet, backed by ecosystem partners such as MyEtherWallet (MEW) and AnChain. This initiative aims to provide scalable and affordable privacy solutions for blockchain sectors including decentralized finance (DeFi), artificial intelligence (AI), and non-fungible tokens (NFTs).

The testnet leverages COTI’s Garbled Circuits technology, which allows secure computation of private inputs without revealing sensitive data. This innovation has garnered attention from key blockchain players, highlighting its potential impact on confidential transactions and data protection.

Despite these advancements, the market outlook remains cautious. While the technology promises significant improvements in privacy and scalability, the broader adoption and regulatory acceptance of such solutions are uncertain. The blockchain industry continues to face challenges in achieving widespread integration and compliance, which could hinder the long-term success of initiatives like COTI’s L2 testnet.