What is Coti (COTI)?
COTI (COTI) is a Layer 2 network on Ethereum that lets smart contracts work with confidential data. On an open blockchain every record is public by default; COTI keeps transaction amounts or participants hidden from outsiders while still proving that the transaction is valid. Privacy is not forced—app developers write into the code which data stays secret, for how long, and who is allowed to see it. The project first launched as a payment network in 2019 and transitioned to its current Layer 2 design in 2025.
How does on-chain confidentiality actually work on COTI?
The core cryptographic method is known as garbled circuits. It enables a computation to run and its result to be verified without exposing the underlying data. Smart contracts execute inside gcEVM, a virtual machine compatible with the Ethereum Virtual Machine. This means existing contracts written in Solidity can be moved to COTI without being rewritten—the developer simply marks which variables should stay private with an extra line of code.
Because COTI uses a selective disclosure model, a payment transaction can hide the amount from the public while still providing a summary to a regulator. The goal is to avoid the audit difficulties that fully closed systems create.
What role does the COTI token play?
The COTI token pays for gas on the Layer 2 network. Whether a confidential contract is executed or a private transfer is sent, the fee collected is distributed to the nodes that secure the network. Holders can also lock their tokens in the treasury (stake) to earn rewards. The roadmap includes a governance system that would give COTI holders voting power on protocol changes.
