Privacy is coming to blockchains this year and it will trigger institution involvement into crypto and blockchain usage. Up until now the blockchain was not something an institution could use due to the transparency. Everyone thought transparency was such a great thing yet this is not how the institutions see it as it reveals too much data and information.
The COTI garbled circuits is already live on Ethereum testnet and is expected to be line on the mainnet very soon. Once everyone understood what was holding the institutions back like COTI found out talking to prospective clients they had to develop the tech required to protect these clients. This has all happened within the last 24 months which is quite remarkable considering what needed to be developed.
Ethereum is going to have institutions using their blockchain for cross border bank payments and inter bank settlements. Wells Fargo, Bank of America, Citi Bank and SWIFT is currently testing on Ethereum for cross border payments and interbank settlements. Privacy is needed for this to happen or the blockchain is totally useless. The protection of the data is that important and without this institutions will ignore the blockchain.
What institutions require in Ethereum to offer the infrastructure in the real world with real world issues like security, data ownership and not sharing, regulatory compliance and control of their operations. These are the non negotiable requirements and thinking back shows you how far off the blockchains were and were in no ways tech ready and prepared for the institutions.
We had everyone in crypto talking about mass adoption and no one had actually asked the institutions what they needed until they were told in no uncertain terms it was unusable. We know how valuable data is these days with data centers popping up all over the world and is the new big business. Keeping our data private is paramount for everything tied to security and privacy.
The more we are involved in crypto the more we learn and at the same time the more value we are growing through accumulation of our portfolio. Security and keeping things private has always been important but this will become increasingly more important over time as the values start to rise. Having your information encrypted will be a must have in the future similar to how you keep your banking data private.
Those crypto projects that have been invited by the Enterprise Ethereum Alliance are well placed to get ahead by offing the tech they have developed with regard to privacy. This is not about who has the better tech as this is all being shared via joint partnerships making sure they have the best tech that is required for the institutions. ZK is not scalable and cannot do multi party transactions so COTI Midnight was introduced which allows this to now Happen for Ernst and Young customers.
I must admit I got lucky when I invested in COTI as back then in 2021 privacy was not even mentioned until one of their prospective clients demanded privacy to be incorporated into the tech. Right place, right time, right investment and why privacy with my thought process has been a thing for a good 3 years already because I have stayed up to date with the entire privacy development process. Privacy this year and next year will be the leading narrative in crypto and what will drive the next Bull cycle. The institutional money is coming and we have seen nothing yet with how crypto is going to change as a genuine use case.