Around 4 hours ago the Dencun hardfork (EIP-4844) went live on the Ethereum Blockchain which has been named by Vitalik Buterin as the "Surge" growth phase. This hardfork is all geared towards scalability and efficiency through using the Ethereum L2 tokens. In other words the Eth L2 tokens just became far more important and valuable.
Sharding is basically breaking up the Ethereum Network into smaller chunks allowing for data and transactions to be processed faster whilst still being validated with many happening at the same time. This helps reduce transactions costs through being more efficient whilst speeding up the number of transactions all at the same time.
The benefits here for COTI is that smart contracts can be greatly improved and executed at a faster rate whilst benefitting from lower fees.
Allows data to be stored off chain whilst increasing the amount of data being processed through compressed roll up transactions that are compressed transactions meaning far more than normal going through in the same allocated block space. This also reduces the need for more storage with the Blobs having an expiry period of around 30 days or 1 month. Blobs are expected to reduce transaction fees by around 75% due to them allowing the condensed transactions which is a bigger number divided by the fee than what was currently being handled with every block.
When COTI V2 the new privacy token was developed his included all the new Dencun hardfork upgrades so COTI is ready for action from day one where other Ethereum L2 crypto projects need to upgrade their existing offerings.
COTI has gained a lot of attention lately and he number of COTI holders is growing rapidly. Ever since the Garbled Circuits demonstration went live things have changed dramatically. The price is up nearly 5 x and I am expecting another period of green candles.
What is interesting to note is this was obviously not exactly top secret because someone started investing heavy in COTI 3 months ago and now owns nearly 7% of the circulating supply. They are not staked in the COTI Treasury or we would have noticed the TVL number rise considerably. Some are speculating it could be the VC Morningstar.Ventures who recently announced an investment. VC's are not investing for 100% returns and are in this to do multiple gains.
The important take from all of this is COTI's new Garbled Circuit technology offers something no other protocol has. This technology has been protected via patents and is the same technology Vitalik Buterin mentioned months ago that Ethereum required to move forward.
Obviously time will tell how valuable this technology really is and it will reflect in COTI's price. This rise in price will not reflect immediately even though the last two weeks have been rather good already. Like any investment it is in the hands of the market and with crypto now very much aware of what COTI has it could be in for a major run.
