It is actually pretty cool being a investor in a project through stake and watching everything evolve and grow around you. Today we were told that PriveX is on board and have adopted the privacy COTI V2 technology.
I know very little about PriveX besides they are a DEX and that they will be offering DeFi backed by COTI V2 privacy which will block any front running on trades. This has been a problem with DeFi with bots scalping the trades and now these bots cannot operate like they used to.
The bots known as MEV bots scalp small percentages over thousands of trades all done within 10ths of a second and impossible for a human to achieve. In one day last year on one network MEV bots executed 11 640 trades earning over $1 million. This is nothing if we look at Ethereum who registered $686 million in the mot of May last year being earned by MEV bots. This is $686 million being lost by investors who have had their trades scalped.
Front running is only the tip of the iceberg as data revealed on Ethereum in August last year $10.03 million earned via arbitrage, $2.2 million via sandwich attacks which id front and back end running plus $1.4 million via liquidations. This may sound small, but this is roughly $14.5 million lost again by investors and traders. MEV bots are a big problem with DeFi and the sooner they are made redundant the better the crypto world is. PriveX will be the first DEX offering an exchange that is bot free.
COTI V2 fixes this through encryption keeping the details of your transaction private and only revealing the addresses of the transaction. The MEV bots need to know the transaction details in order to perform their tasks and now they are missing the key information like the size and value of the transaction.
Since the announcement of COTI V2 we have seen 5 additional projects added and over the remaining months of this year expect that to quadruple. The COTI Foundation has been adding support through funding and assistance to various projects using the garbled circuits technology.
The one area where I expect to see movement is on real world assets or RWA as they are commonly known. Large corporate investors will not be enticed to get involved due to the transparency of crypto.
Looking at the numbers above which are huge we can see RWA hasn't even got going yet and more needs to happen to entice corporate investors into this area. Privacy is the missing ingredient and expect to see more COTI announcements over the coming months with other crypto projects rolling out COTI V2 technology.
COTI is in a different scenario to 99.9% of crypto projects as they already have the technology to cross over to real world use cases and at the same time help other crypto projects do the same. This is why there will be many more adoptions happening over the next few months and for years to come. This is no longer an "if" but a "when" scenario.