What Is Coti and How It Works: Private Payments in Web3

Coti (Currency of the Internet) is a next-generation blockchain infrastructure focused on enabling private, fast, and scalable digital payments. Originally launched in 2017 as a DAG network, the project underwent a complete transformation with the release of Coti V2 in early 2025. It is now a full-fledged Layer 2 protocol built on Ethereum, employing advanced cryptographic methods to secure data.

“Coti V2 marked a turning point for privacy in DeFi. It doesn’t just mask data — it makes it invisible.” – Blockchain Platform Expert, CryptoWatch.

What Is Coti? 💡

Coti is a platform designed to address privacy challenges in digital finance. It combines DAG (Directed Acyclic Graph) and Ethereum Layer 2 technologies to provide:

  • High transaction throughput;
  • Scalability without compromising security;
  • End-to-end data encryption even during processing.

With the launch of Coti V2, it became possible to use the Garbled Circuits system — an innovative technology that enables transaction verification without revealing the underlying data. This makes the platform particularly attractive to enterprises that require privacy while maintaining compatibility with decentralized finance products.

How Does the Garbled Circuits System Work? 🧠

Garbled Circuits are one of the most advanced methods for privacy-preserving data processing. Unlike ZK-SNARKs, which require heavy computation, Garbled Circuits operate as follows:

  • Each transaction is encoded and encrypted;
  • Validators verify its correctness without viewing the contents;
  • The result is submitted to the Ethereum blockchain for final confirmation;
  • Execution speed is 3,000 times faster than when using ZK-SNARKs.

This makes Coti one of the leading solutions supporting confidential transactions in Web3, especially amid growing demand for private DeFi and tokenized assets.

Technological Foundation: Transition from TrustChain to Layer 2 🛠️

A few years ago, Coti was built on TrustChain — a hybrid DAG and PoW system where users rated each other via a “Trust Score.” However, after upgrading to Coti V2, the architecture was completely rewritten.

  • Coti now operates as a Layer 2 solution on Ethereum;
  • It supports MultiDAG — the ability to handle multiple tokens simultaneously;
  • It allows the creation of enterprise networks compliant with GDPR and other regulatory standards;
  • It is integrated into the Ethereum ecosystem and supports EIP-compatible contracts.

The new version has made Coti more versatile while preserving its unique feature — complete metadata concealment.

What Is the COTI Token Used For? 🚀

Despite the protocol changes, the COTI token remains the core element of the ecosystem:

  • Fee payment within the network;
  • Staking to maintain security;
  • DAO voting — participants influence updates;
  • Rewards for nodes and liquidity providers.

According to CoinGecko, as of May 2025:

  • Circulating supply: ~2.11 billion COTI;
  • Max supply: 4.91 billion;
  • Price: $0.072;
  • TVL: around $18 million;
  • Market cap: ~$150 million.

Although the metric is still modest, analysts believe that interest in COTI could grow significantly with the expansion of DeFi and RWA (Real World Assets).

How Is Coti Changing the Approach to Digital Payments? 📊

Coti Pay is one of the key applications already used in commercial environments. It enables you to:

  • Accept payments in multiple currencies;
  • Automatically convert them into stablecoins or ETH;
  • Keep fees minimal;
  • Protect all transactions with Garbled Circuits.

In addition, Coti is actively forging partnerships with banks, government platforms, and companies working with tokenized assets. For example, one of the largest B2B payments platforms announced testing integration with Coti V2 at the end of 2024.

What Is the Price History of COTI? 📈

The price of the COTI token has gone through several phases:

Year Low High Key Events
2019 $0.03 $0.05 Network launch and first partnerships
2021 $0.15 $0.68 DeFi activation, Cardano partnership, COTI Pay
2022–2024 $0.04 $0.09 Transition to V2, decreased market activity
2025 $0.06 $0.072 Ethereum Layer 2 integration, new enterprise projects

Against the backdrop of rising interest in private protocols, COTI could become a key player in real-world asset tokenization and private DeFi solutions.

Coti’s Advantages Over Other L2 Networks 🆚

Parameter Coti zkSync StarkNet
Privacy Complete data concealment Proofs, but not all data is hidden Full privacy
Throughput up to 100,000 TPS up to 20,000 TPS up to 30,000 TPS
Token support MultiDAG — support for multiple parallel tokens Single support for ETH and ERC-20 Support for StarkEx and StarkWare
Regulatory compliance GDPR, MiCA ready Suitable for an open ecosystem High transparency

This combination makes Coti especially relevant for companies seeking to operate within a decentralized infrastructure while maintaining data control and regulatory compliance.

What Other Features Does Coti V2 Offer? 🌐

The Coti V2 upgrade has introduced a range of new capabilities to the platform:

  • MultiDAG — enables running multiple token networks on the same layer;
  • Enterprise Chain — specialized pools for banks and corporations;
  • Tokenization-as-a-Service — easy deployment of custom tokens;
  • Private liquidity pools — similar to Uniswap but with data protection;
  • Smart contract support — with full EVM compatibility.

All these features make Coti competitive compared to platforms like Aztec, Zcash, and even zkEVM networks.

Lessons from the Hacken Audit? 🔍

The 2025 Hacken audit confirmed the security of Coti V2, particularly in:

  • Integrity of Garbled Circuits;
  • Protection against MEV attacks;
  • MultiDAG security;
  • Resilience of data recovery procedures;
  • Resistance to replay attacks.

This indicates that the protocol is technically robust, which is crucial amid the rising number of exploits in the DeFi and NFT sectors.

Which Projects Are Already Using Coti? 🏦

Notable companies and platforms implementing Coti include:

  • B2B Payments — a private network for supplier transactions;
  • Zephyr Protocol — DeFi infrastructure for tokenized bonds;
  • PrivateSwap — a privacy-focused DEX;
  • Cardano Treasury — integration into the treasury management system.

These examples show that Coti is becoming increasingly in demand in Web3 infrastructure, particularly where privacy and scalability are essential.

What Risks Does COTI Face in 2025? ⚠️

Despite its advantages, the project faces several challenges:

  • Low adoption compared to other L2 networks;
  • Slow community growth — particularly in Russia and Asia;
  • Regulatory pressure risk in countries restricting private wallets;
  • Dependence on Ethereum — any changes in Ethereum Improvement Proposals could affect Coti;
  • Limited exchange support — COTI is not yet listed on Coinbase or KuCoin.

Nevertheless, if regulators embrace the private payment model, Coti could gain fresh momentum.

How to Start Using Coti? 🧭

If you want to try the platform, here’s a simple path:

  1. Create a wallet via Coti Wallet or Trust Wallet;
  2. Connect it to Coti V2 through MetaMask;
  3. Transfer ETH or USDT via the available bridges;
  4. Use Coti Pay for transactions;
  5. Participate in voting through the DAO;
  6. Add COTI to your portfolio to earn rewards.

Integrations with NFT platforms and DeFi pools are also available, allowing you to earn yield through liquidity provision and staking.

The Future of Coti: Where Is the Platform Headed? 🌟

In 2025, Coti aims to:

  • Expand support for tokenized assets;
  • Increase the number of institutional clients;
  • Integrate with cross-chain bridges;
  • Develop private liquidity pools;
  • Implement AI models for risk management and transaction analysis.

The team is also considering launching its own stablecoin based on Garbled Circuits, which could be a significant step toward mainstream adoption.

Conclusion: Coti — the Platform for Money of the Future 🧭

Coti continues to be one of the few platforms that offer:

  • High throughput;
  • Full privacy;
  • Multi-token support;
  • Ethereum compatibility.

Although it is not currently in the top 50 crypto assets, its role in private DeFi and RWA is only growing.

If you are interested in:

  • Private payments;
  • Real-world asset tokenization;
  • Enterprise blockchains;
  • Decentralized governance;

— then Coti deserves your attention.

03.06.2025, 06:18