TL;DR

• Global supply chains face growing pressure from inefficiency, fraud, and lack of data privacy.
• Blockchain is already transforming logistics, but privacy gaps remain a roadblock for adoption at scale.
• COTI V2 introduces garbled circuits, enabling private and verifiable supply chain data flows.
• StaTwig, backed by UNICEF, now integrates COTI to protect sensitive vaccine data across 100M+ doses.
• Enterprises can use COTI V2 to improve trust, compliance, and resilience in supply chains worldwide.

Supply chains keep the world running, but cracks in the system are hard to ignore. From pandemic-era shortages to fraud in food and pharmaceutical logistics, inefficiencies cost billions. The World Economic Forum estimates that supply chain inefficiencies result in a staggering $2 trillion of output at risk by 2030.

Even when blockchain entered the scene, adoption stalled because of one core problem: privacy. Traditional blockchain records are transparent by design, but corporations need to protect trade secrets, pricing, and customer data. Sharing sensitive details publicly-even in a "secure" distributed ledger-can pose legal and competitive risks.

That's where COTI V2 comes in. By offering private, programmable computation through garbled circuits, COTI bridges the gap between transparency and confidentiality. It allows stakeholders to verify supply chain data without revealing sensitive information.

The Stakes: Healthcare, Food, and Global Logistics

The industries most impacted by supply chain issues are also the ones where mistakes have life-and-death consequences.

Take pharmaceuticals. According to the World Health Organization, up to 50% of vaccines go to waste globally due to mismanagement in storage and transport source: WHO via The News Minute. Cold chain failures-where vaccines are not kept at the correct temperature-are among the top culprits.

Food supply chains face similar challenges. Counterfeit products, spoilage, and contamination scandals have eroded consumer trust. In 2013, the horsemeat scandal in Europe revealed how vulnerable food systems are to fraud when supply chain data is opaque. Enterprises need systems that balance accountability with privacy. If every stakeholder could see exactly what shipments contained, it would compromise competitive advantage. If no one can verify anything, the risks multiply.

COTI's V2 Advantage

COTI's V2 is built around garbled circuits, a privacy-preserving computation method that enables data to be processed without being revealed. In supply chain contexts, this means logistics providers, regulators, and enterprises can share critical data-temperature logs, location updates, custody records-without exposing sensitive details to competitors or malicious actors.

Unlike traditional zero-knowledge proof systems, COTI's benchmark tests show 1,800x to 3,000x faster operations and 250x lower resource costs than typical privacy tech. That kind of efficiency makes privacy practical for real-time, global-scale supply chains.

Shahaf Bar-Geffen, CEO of COTI, has framed it simply:

StaTwig: A Real-World Example

One of the most promising applications is already live. StaTwig, a blockchain-based supply chain solution recognized as a UN Digital Public Good, is tracking over 100 million vaccine doses worldwide. Backed by UNICEF, StaTwig ensures vaccine authenticity and prevents cold chain breakdowns.

Now, StaTwig has integrated COTI's garbled circuits to add real-time privacy protections for sensitive cold chain data .

This is significant for two reasons:

1. Public health impact: Lives depend on vaccine integrity. Ensuring that supply data can be verified without being exposed reduces both fraud and risk.
2. Enterprise-grade privacy: If COTI works for something as sensitive as global vaccine distribution, it can work for any sector that requires confidentiality and compliance.

As StaTwig's work shows, the real-world demand for privacy in supply chains is not theoretical-it's urgent and measurable.

Why Enterprises Should Care

For corporations, the biggest roadblocks to blockchain adoption in supply chains have been:

1. Data confidentiality: Protecting sensitive trade information.
2. Compliance: Meeting government and regulatory privacy standards.
3. Scalability: Handling large transaction volumes without slowing operations.

COTI addresses all three. By enabling selective disclosure, enterprises can decide what to reveal and to whom, satisfying compliance while retaining control. For instance, customs officials may need proof that a vaccine shipment was kept cold-but they don't need the full manifest of every proprietary detail.

In Shahaf Bar-Geffen's words: 

This flexibility makes COTI particularly well-suited for finance-linked supply chains, such as trade finance, where banks demand verifiable proof of shipment but companies must keep contracts confidential.

Broader Horizons: Beyond Vaccines

While healthcare and food dominate the privacy conversation, COTI's V2 architecture has broader applications:

• Luxury goods: Preventing counterfeiting while protecting supplier relationships.
• Automotive: Ensuring part authenticity without disclosing trade secrets.
• Electronics: Tracking component origins while complying with data-sharing restrictions.
• Defense and aerospace: Enabling secure audits without compromising classified supply data.

Each of these industries faces the same dilemma: the need for trust plus privacy.

The Regulatory Context

Governments worldwide are pushing stricter rules on supply chain transparency, from the EU's due diligence requirements to the U.S. SEC's focus on ESG disclosures. At the same time, privacy laws such as GDPR and HIPAA restrict how much data companies can share openly.

This creates a paradox: be transparent, but keep secrets. Without new tools, the requirements look contradictory. COTI's privacy layer resolves the tension by allowing selective disclosure, ensuring companies can comply with both transparency and privacy laws at once.

Why It Matters for Web3 and Beyond

Supply chains are more than just logistics-they're the backbone of global trade and finance. In Web3, where real-world assets (RWAs) are being tokenized at scale, trust in the origin and movement of goods will be crucial. COTI's privacy-first model ensures that tokenized supply chain assets are not just verifiable but also compliant with privacy expectations.

As the tokenization of trade finance grows to an estimated $16 trillion market by 2030 , privacy-enabled blockchain systems like COTI's could become essential infrastructure.

Final Thought

Supply chains are often invisible until they fail. COTI V2 offers a way to build resilience into these systems by making data both verifiable and private. The partnership with StaTwig shows how this vision translates into real-world impact: protecting millions of vaccine doses, recognized at the highest levels of international governance.

If enterprises want supply chains that are efficient, compliant, and trustworthy, they cannot rely on legacy systems alone. With COTI's privacy layer, supply chains are not just transparent-they're future-proof.