Shahaf Bar-Geffen, CEO of COTI, led a July 2025 event with Secret Network to promote DeCC collaborations, highlighted privacy-compliant blockchain solutions.
The event signifies a move towards scalable privacy-compliant blockchain technology, affecting AI applications and DeFi, without impacting other cryptocurrencies like BTC directly.
COTI introduced a privacy-focused Ethereum Layer 2 using Garbled Circuits for decentralized confidential computing (DeCC), targeting the AI agent economy. The company aims to revolutionize how privacy is handled in blockchain applications, focusing on identity and scalability.
Led by CEO Shahaf Bar-Geffen, COTI collaborates with Soda Labs to create infrastructure supporting AI agents and confidential Web3 applications. The initiative builds on a mainnet launch in March 2025, followed by partnerships with networks like Secret Network for collaborative events.
Privacy 2.0 Aims for Ethereum Layer 2 Integration
COTI’s initiative may reshape blockchain applications by integrating privacy into Ethereum’s layer 2 environment. Shahaf Bar-Geffen emphasized the compliance aspect, stating that Privacy 2.0 focuses on identity and scalability, offering a compliant solution for blockchain technology.
Shahaf Bar-Geffen, CEO, COTI, stated, “Without privacy, public blockchains can’t support serious use-cases,” adding that, “Privacy 2.0 is not about secrecy: it’s about identity, safety, and scalability. It’s compliant by design.”: COTI News
The market impact remains to be seen, but the integration with Ethereum could potentially influence DeFi protocols and real-world assets (RWAs). No major financial shifts like TVL changes or liquidity impacts have been reported, yet the privacy layer aims to provide safer AI tools.
Evolution from Privacy 1.0 to Regulatory Compliance
Historically, the move marks a contrast from early Privacy 1.0 initiatives lacking regulatory compliance. Shahaf Bar-Geffen highlights that compliant privacy solutions have evolved as necessary components for advanced blockchain use cases, including AI and enterprise sectors.
While Kanalcoin experts have not commented on expected market shifts, industry observers note that COTI’s approach to blending privacy and compliance may inspire similar advancements across blockchain projects. The integration’s success could serve as a compelling case study for the sector.
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