The blockchain landscape continues to evolve rapidly, with major innovations reshaping scalability, privacy, and interoperability across ecosystems. One of the most significant developments comes from COTI, a layer-1 blockchain that has announced plans to transform into what it calls the "first privacy-preserving Ethereum layer-2." This strategic pivot aims to address core challenges in Web3—scalability, liquidity fragmentation, and lack of on-chain privacy—by leveraging cutting-edge cryptographic technology.
According to the COTI team, the upcoming COTI V2 will be an Ethereum-compatible Layer-2 network powered by Garbled Circuits, a specialized form of secure multi-party computation. Unlike traditional zero-knowledge (ZK) proofs, Garbled Circuits are claimed to deliver up to 10x greater efficiency, enabling faster transaction processing while maintaining strong privacy guarantees. The devnet launch for COTI V2 is scheduled for Q2 2024, marking a pivotal step toward mainstream adoption of private, scalable dApps.
This shift positions COTI at the forefront of the next-generation Layer-2 race, where performance meets confidentiality—a combination still rare in today’s public blockchains.
👉 Discover how emerging Layer-2 solutions are redefining blockchain efficiency and privacy.
Hedera Appoints Former Polygon Executive as New Council President
In leadership news, the Hedera Governing Council has named Charles Adkins, a former executive at both Aptos and Polygon, as its new president. With deep experience across Web3 infrastructure, finance, and enterprise technology, Adkins is expected to accelerate Hedera’s institutional adoption and ecosystem expansion. His background in scaling blockchain networks brings strategic value as Hedera continues to position itself as a high-performance, enterprise-grade platform.
Adkins’ appointment underscores a broader trend: the convergence of talent and expertise across top-tier blockchain projects, driving innovation through cross-pollination of ideas and governance models.
Liquid Staking Gains Institutional Momentum with BitGo Support
Liquid Collective, an institutional-grade liquid staking protocol, has announced that BitGo will now offer Qualified Custody for LsETH, its liquid staking token (LST). This marks BitGo’s first foray into institutional liquid staking support and highlights growing demand for secure, compliant access to staked ETH derivatives.
With over 900% TVL growth in Q3 2023, Liquid Collective is rapidly becoming a key player in the DeFi staking sector. By enabling BitGo users to securely hold and transact LsETH, this partnership expands access to one of the largest segments of decentralized finance—while reinforcing trust through regulated custody infrastructure.
Interchain Foundation Announces $26.4M Funding Plan for Cosmos Ecosystem
The Interchain Foundation (ICF) has revealed its 2024 funding roadmap, allocating **$26.4 million** to advance core components of the **Cosmos** ecosystem. While slightly reduced from 2023’s $40M estimate, the budget reflects a focused investment strategy aimed at long-term sustainability and modular innovation.
Key allocations include:
- $7.5M for the Inter-Blockchain Communication (IBC) Protocol to enhance cross-chain data transfer.
- $4.5M for Cosmos SDK improvements to boost developer experience and app-chain flexibility.
- $3M for CometBFT to ensure consensus reliability and fault tolerance.
- $2.5M for CosmWasm, reinforcing secure smart contract execution.
- Additional funds for security audits, developer tools like CosmJS, and ecosystem-wide resilience.
These investments signal continued confidence in Cosmos’ vision of an interconnected, sovereign blockchain internet.
Fetch.ai and SingularityNET Join Forces to Combat AI Hallucinations
Two pioneers in AI and Web3—Fetch.ai and SingularityNET—are collaborating to tackle critical issues in large language models (LLMs), including hallucination and non-determinism. By combining their technologies, they aim to introduce more reliable, reasoning-capable AI models accessible via simple APIs and traditional programming languages.
Planned for release in 2024, the integrated interface will merge LLMs with autonomous AI agents within an open marketplace, enabling developers to build trustworthy, deterministic applications. This effort could significantly advance the practical usability of AI in decentralized systems—from automated DeFi strategies to verifiable data analysis.
👉 Explore how AI and blockchain convergence is unlocking next-gen decentralized applications.
Hyperion Decimus Launches Active Crypto Strategy with CoinDesk Indices
Digital asset manager Hyperion Decimus (HD) has partnered with CoinDesk Indices (CDI) to launch the HD CoinDesk TrendMax Strategy, a quantitative trading solution driven by proprietary trend indicators. Using non-discretionary algorithms, the strategy leverages CDI’s Bitcoin Trend Indicator (BTI) and Ether Trend Indicator (ETI) to identify market direction and momentum—automating investment decisions across BTC and ETH.
This marks a growing trend toward data-driven, rules-based strategies in crypto asset management, appealing to both institutional and retail investors seeking systematic exposure without emotional bias.
Polygon Empowers Builders with Celestia Data Availability Option
Developers building new Layer-2 networks using Polygon’s Chain Development Kit (CDK) now have access to Celestia as a modular data availability (DA) layer. This integration gives teams a cost-effective alternative for publishing transaction data off-chain while retaining security and decentralization.
By supporting Celestia, Polygon reinforces its commitment to modularity—a design philosophy that allows developers to mix and match best-in-class components when launching app-specific rollups.
Chainlink Price Feeds Now Live on zkSync Era
Chainlink Labs and Matter Labs have announced the integration of Chainlink Price Feeds on zkSync Era, the ZK-EVM scaling solution for Ethereum. As part of the SCALE program, this collaboration enhances DeFi on zkSync by providing reliable oracle data and reducing gas costs for dApps.
With accurate price feeds now available, developers can confidently build lending platforms, derivatives markets, and other financial primitives on zkSync—knowing their systems are secured by industry-leading oracle infrastructure.
Vertex Protocol Enables Cross-Chain Collateral via Axelar
Decentralized exchange Vertex Protocol has partnered with interoperability network Axelar to allow users to deposit collateral from eight major chains—including Ethereum, Binance Smart Chain, Optimism, and Avalanche—directly into their trading accounts. Powered by Axelar’s Squid Router, deposits settle in under two minutes on average.
This upgrade removes friction in cross-chain trading, allowing traders to leverage assets natively held on different blockchains without prior bridging steps—a major usability improvement in multi-chain DeFi.
Pi Network Introduces Decentralized Moderation Framework
Web3 social platform Fireside Forum, developed by Pi Network, has launched “Decentralized Moderation”—a novel content governance model where users actively shape community standards. Key features include:
- Tiered moderation roles with token-based incentives.
- Real economic stakes tied to moderation actions.
- Transparent reward/penalty mechanisms promoting fairness and accountability.
This experiment explores how decentralized communities can self-govern without centralized oversight—a crucial step toward truly autonomous Web3 platforms.
Nil Foundation Unveils First zkEVM Built with zkLLVM Compiler
Nil Foundation has introduced a new Type-1 zkEVM powered by its proprietary zkLLVM compiler, making it the first zkEVM with core circuits automatically generated from high-level code (C++ or Rust). This eliminates manual circuit design—a common source of bugs and inefficiencies in existing ZK systems.
By automating circuit compilation, Nil enhances security and development speed, potentially accelerating the adoption of ZK technologies across Ethereum L2s.
Web3 Giants Form Universal Privacy Alliance
A coalition of privacy-focused projects—including Nym, Protocol Labs, Oasis, Aztec, and the Filecoin Foundation—has formed the Universal Privacy Alliance (UPA). The alliance aims to advocate for digital privacy rights globally, engage policymakers on regulations like eIDAS and the Digital Services Act, and promote privacy-preserving technologies.
With collective funding committed to advocacy efforts, UPA represents a unified front in defending user sovereignty in an increasingly surveilled digital world.
Verida and inDAO Collaborate on Uzbekistan’s Web3 Transformation
Self-sovereign identity provider Verida has teamed up with inDAO to bring Web3 capabilities to all 36 million citizens of Uzbekistan. Initiatives include zero-knowledge credentials for education verification, secure healthcare data access, and real estate digitization—all powered by a customized Verida wallet integrated with inDAO’s blockchain.
This national-scale project exemplifies how decentralized identity can drive economic modernization in emerging markets.
FAQ: Understanding Key Developments
Q: What makes COTI V2 different from other ZK-based Layer-2s?
A: Instead of relying on zero-knowledge proofs, COTI V2 uses Garbled Circuits—a cryptographic method that offers higher computational efficiency while preserving transaction privacy. This could lead to faster finality and lower costs compared to traditional ZK-rollups.
Q: Why is BitGo’s support for LsETH significant?
A: As a qualified custodian regulated in multiple jurisdictions, BitGo’s endorsement adds institutional credibility to liquid staking tokens. It enables banks, funds, and enterprises to participate in DeFi yield opportunities with compliant custody solutions.
Q: How does Garbled Circuits technology improve blockchain privacy?
A: Garbled Circuits allow two parties to compute a function over encrypted inputs without revealing those inputs. In blockchain context, this means transactions can be validated privately—without exposing sender, receiver, or amount—while remaining compatible with Ethereum’s execution environment.
Q: What is retroactive public goods funding (RPGF)?
A: RPGF is a funding model where tokens are distributed to contributors who previously advanced public goods—like open-source tools or privacy research—before a network’s official launch. Namada’s implementation rewards ZK developers, Rust maintainers, and cryptography innovators.
Q: How does cross-chain collateral benefit traders?
A: It allows users to deposit assets from any supported chain directly into a dApp without prior bridging. This reduces time, cost, and complexity—especially valuable for active traders managing positions across multiple ecosystems.
Q: What role does IEEE issuing credentials on Avalanche play in Web3 adoption?
A: When respected institutions like IEEE adopt blockchain for credentialing, it validates the technology’s reliability for real-world use cases—such as verifying academic degrees or professional certifications instantly and tamper-proof.
Final Thoughts: The Road Ahead for Scalable, Private Blockchains
As Ethereum scales through Layer-2 innovation and modular architectures gain traction, projects like COTI, Nil Foundation, and Polygon CDK are pushing the boundaries of what’s possible—merging performance with privacy and interoperability.
With growing institutional interest—from IEEE adopting Avalanche to BitGo backing LsETH—the infrastructure layer of Web3 is maturing rapidly. These advancements lay the foundation for mass adoption, where seamless user experiences meet enterprise-grade security.
👉 Stay ahead of the curve—see how top protocols are shaping the future of decentralized finance.