Today's blockchain landscape extends beyond a single chain- it's evolving into a network of specialized, modular infrastructure designed to work seamlessly together. Each major player has carved out a clear identity.
Ethereum has cemented itself as the financial backbone of Web3, the go-to platform for DeFi and programmable money. Solana, meanwhile, is redefining consumer crypto by pushing the boundaries of speed, scalability, and seamless user experience.
In this map of differentiated value propositions, a new question emerges: what role does COTI play? As the demand for on-chain privacy, compliance, and real-world applications grows, COTI is stepping into a uniquely important position.
What Is COTI at Its Core?
COTI V2 is an Ethereum-compatible Layer 2 network that enables privacy-preserving smart contracts. Rather than focusing on public transparency or raw speed, COTI specializes in confidential computation using Multi-Party Computation (MPC) powered by Garbled Circuits, a cryptographic breakthrough that allows parties to compute encrypted data without revealing the data itself.
This architecture unlocks a new class of applications where privacy, compliance, and correctness are paramount.
COTI’s performance is equally compelling: it can process up to 1,000 transactions per second (TPS) for native transactions, and around 40 TPS for encrypted ones, twice the speed of its closest privacy-focused competitors.
The Missing Piece in the Web3 Stack
COTI isn’t attempting to outcompete Ethereum or Solana, it complements them by solving a problem neither was built to address: privacy at the computation layer. Where Ethereum is optimized for value transfer and Solana for high-throughput user activity, COTI fills the role of confidential computing, enabling secure processing of sensitive data on-chain.
Its architecture is ideal for real-world domains like finance, healthcare, identity, and artificial intelligence sectors that require not only performance and programmability but data confidentiality and regulatory alignment. In other words, COTI is emerging as the confidential Layer 2 for the real economy.
Use Cases That Need Privacy by Design
The importance of privacy isn’t abstract, it’s functional. COTI’s technology unlocks use cases that are otherwise infeasible on transparent public ledgers:
- AI agents that can process sensitive personal inputs without leaking data.
- DeFi protocols that align with jurisdictional compliance while protecting user privacy.
- Reputation and identity systems that authenticate without surveillance.
- Confidential governance tools for voting, whistleblowing, and mental health support.
These applications don’t just benefit from privacy, they require it. COTI brings this capability into the Web3 toolkit.
ALSO READ: COTI V2 Use Cases: Setting a New Benchmark for Blockchain Privacy
What sets COTI apart from other privacy solutions like ZK rollups?
While Zero-Knowledge Proofs are powerful for proving facts without revealing them, they aren’t optimized for general-purpose private computation. COTI’s architecture MPC combined with Garbled Circuits, enables actual smart contract execution over encrypted data.
This means developers can write logic where inputs, outputs, and state remain confidential, all while ensuring correctness.
- On Ethereum, the state is public.
- On COTI, the state is encrypted by demand.
Conclusion: A Triad of the Future?
The future of blockchain is modular. Ethereum will continue to anchor value and Solana will scale user experiences. And COTI will power the private computation layer that modern apps and enterprises require.
Together, they form a powerful trio: Ethereum for value. Solana for scale. COTI for privacy.
READ MORE : COTI vs. Mind Network: Why Garbled Circuits May Outrun FHE in the Privacy Race