Enterprise blockchain Coty will be Ethereum’s privacy-focused Layer 2 by 2024.
Enterprise-grade blockchain platform Coty is set to become a scalable, privacy-focused layer-2 transition protocol on top of Ethereum in 2024.
An announcement shared with Cointelegraph describes how Coty is transitioning from a standalone protocol to Ethereum Layer 2 to bring its privacy features to the wider ecosystem. Coty v2 features an encryption approach called garbled circuits that allows transactions to be processed without exposing sensitive data and information.
Drawing from multiparty computation (MPC), garbling protocols allow two or more parties to compute a task jointly, keeping their inputs and intermediate variables private.
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The technique was first introduced in the 1980s and has become an important part of privacy-preserving technologies. The primary benefit of the technology is to preserve individual input privacy while allowing multi-party computation.
Garking protocols are useful in situations where confidential information needs to be included in a computation without revealing the information itself. Coty CEO Shahaf Bar-Jeffen explains how the protocol prevents sensitive information from being leaked to competitors, partners and customers across the chain:
“Sensitive data transmitted as public data on the blockchain is a bug, not a feature. This is not tolerated in legacy business systems, so why should it be tolerated on-chain?”
Bar-Jeffen added that Garling protocols provide a unique approach to enable transactions and smart contract execution in the context of Coty v2, where the details remain confidential between the parties involved.
“This level of privacy is especially important in decentralized financial applications where transaction confidentiality is as critical as transaction accuracy.”
CEO Coty is primarily focused on enabling enterprise operations on the blockchain network with complete privacy. He says other anonymity-focused platforms tread the line from a regulatory perspective and are ineffective at providing a compliant foundation for the wider ecosystem.
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Coty considers adapting the protocol to use cases in finance and healthcare that require advanced privacy provisions. The current protocol is aimed at enterprises and allows for the management of products such as custom branded tokens, wallets, web integrations and fiat on and off ramps.
Coti v2 is scheduled for developer net release in the second quarter of 2024. Coty currently provides digital infrastructure at the Layer-1 level for Web3 applications. This includes tools for wallets, tokens and payment modules. The current Layer-1 protocol is locked in at a total cost of $31 million.
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