The blockchain privacy sector takes a significant step forward as COTI, a leading privacy-focused blockchain platform, announces a strategic partnership with Hacken, one of the most trusted names in Web3 cybersecurity. The collaboration aims to combine COTI’s advanced privacy layer technology with Hacken’s extensive auditing expertise, creating a new standard for secure and privacy-preserving blockchain solutions.
The Exploit Mechanics
Web3 security vulnerabilities continue to plague the cryptocurrency industry, with billions of dollars lost annually to smart contract exploits, bridge hacks, and protocol vulnerabilities. The root cause often traces back to insufficient auditing and a lack of privacy-preserving mechanisms that could otherwise protect sensitive transaction data from malicious actors. COTI’s partnership with Hacken directly addresses these systemic weaknesses by integrating privacy technology into the security auditing process itself.
COTI leverages a fast, lightweight implementation of garbled circuits, developed in collaboration with Soda Labs. This technology enables highly effective decentralized confidential computing (DeCC), performing up to 3,000 times faster than competing solutions. By integrating this privacy layer into Hacken’s auditing workflow, the partnership creates a dual shield: Hacken identifies vulnerabilities before they can be exploited, while COTI’s encryption ensures that sensitive data remains protected even during the audit process.
Affected Systems
The partnership has broad implications across the Web3 ecosystem. Hacken brings seven years of experience and has audited over 1,000 blockchain projects, helping to secure tens of billions of dollars in digital value across major Layer 1 and Layer 2 platforms, popular DeFi protocols, centralized exchanges, and cross-chain solutions. COTI’s privacy technology will now complement these existing security measures, providing an additional layer of protection for protocols handling sensitive financial data.
The collaboration specifically targets applications launched on the COTI network, where builders will receive discounted access to Hacken’s auditing services. This ensures that new decentralized applications adopt security best practices from inception rather than treating audits as an afterthought — a common pitfall that has led to numerous catastrophic breaches in the DeFi space.
The Mitigation Strategy
The COTI-Hacken partnership introduces a multi-layered approach to Web3 security. First, Hacken’s suite of auditing products — including smart contract audits, advanced cryptography reviews, and crowdsourced audits through HackenProof — will be enhanced by COTI’s privacy technology. Second, the partnership explores how privacy technology can help organizations navigate the rapidly evolving regulatory landscape, particularly in jurisdictions where data privacy is enshrined in constitutional law.
As Bryn Bennett, Business Development Manager at Hacken, noted: “By combining COTI’s innovative encryption with Hacken’s expertise in smart contract audits, advanced cryptography, and our crowdsourced audits on HackenProof, we’re setting a new standard for secure, privacy-preserving blockchain solutions.”
Lessons Learned
The partnership highlights a critical evolution in how the crypto industry approaches security. Historically, privacy and security have been treated as separate concerns, with teams often prioritizing one over the other. The COTI-Hacken collaboration demonstrates that the most effective protection comes from integrating both disciplines. Protocols that build with privacy-by-design principles are inherently more resistant to certain classes of attacks, particularly those that rely on analyzing transaction patterns or extracting sensitive data from public ledgers.
For developers, the takeaway is clear: security audits should not be a checkbox exercise completed before launch. They should be an ongoing process that incorporates privacy-preserving technologies from the architecture phase onward. The discount offered to COTI builders removes a common financial barrier to professional security audits.
User Action Required
For everyday crypto users, this partnership serves as a reminder to evaluate the security credentials of any protocol before entrusting it with funds. Look for projects that have undergone professional audits from reputable firms like Hacken. For developers building on COTI or similar platforms, take advantage of discounted auditing services to ensure your applications meet the highest security standards. As the industry matures, the integration of privacy and security will become not just a best practice but a baseline expectation.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before engaging with any cryptocurrency project.
garbled circuits for DeCC is legit tech. COTI partnering with Hacken for the audit layer makes more sense than doing it solo
garbled circuits are underrated compared to zk proofs for privacy. different tool for a different job but people treat them as interchangeable
zkml_fan garbled circuits are better for two-party computation but the throughput numbers on COTI are still an order of magnitude below what production DeFi needs. promising but early
garbled_w_ an order of magnitude below production DeFi throughput is generous. the Soda Labs benchmarks assume optimal conditions that never happen on mainnet
mpc_evangelist_ the Soda Labs benchmarks being best case is the real issue. garbled circuits at production DeFi throughput is still 18 months away minimum
gc_throughput_ Soda Labs optimization is the bottleneck. the Hacken audit just validates whatever they ship. if the circuit implementation is slow the audit doesnt fix that
zkml_fan garbled circuits and zk proofs solve different problems but everyone treats them as interchangeable. garbled circuits are better for multi party computation scenarios
zkml_fan finally someone gets it. garbled circuits and zk proofs are completely different tools. MPC vs proof systems isnt a competition
privacy_stack_ MPC and proof systems serve different use cases but COTI marketing them as a zk replacement is misleading everyone
decc and garbled circuits from the coti hacken soda labs deal might slot in with mpc without the zk marketing stretch
garbled circuits at production DeFi throughput is still unsolved. Soda Labs benchmarks are best case scenario numbers. real world performance with complex state transitions is 10x slower
billions lost annually to smart contract exploits and most projects still treat auditing as optional. partnerships like this should be the baseline not the exception
auditing should be mandatory not optional. COTI doing it with Hacken instead of some no-name firm is the right move. garbled circuits are complex enough that cutting corners is suicidal
Hacken is one of the few audit firms that actually catches real bugs. COTI picked the right partner here
Lena V. Hacken catches real bugs but the partnership is table stakes. the question is whether COTI can ship garbled circuits that perform at actual DeFi throughput not just benchmarks
Soda Labs collaboration on the circuit implementation is the interesting part. lightweight garbled circuits that actually perform on-chain is hard
audit_me_pls Soda Labs implementation detail matters more than the Hacken partnership honestly. if the garbled circuit optimization doesnt scale, the audit is auditing a toy
Soda Labs on the circuit implementation is the underrated detail here. lightweight garbled circuits that run efficiently on-chain is the kind of thing that makes or breaks the whole privacy layer
on-chain garbled circuits that actually perform is the key phrase. most implementations are too slow for production DeFi
circuit_breaker_ garbled circuits that actually perform on chain are the hard part. most implementations are too slow for production defi use
COTI picking Hacken over a no name auditor is the right call. garbled circuits are complex enough that corner cutting on the audit would be suicidal
COTI partnering with Hacken instead of some no-name auditor is table stakes honestly. the real question is whether the garbled circuit implementation can hit production throughput
COTI partnering with Hacken is table stakes. the real question is whether Soda Labs garbled circuits can hit production DeFi throughput or if the benchmarks are best case only
garbled_skep_ exactly. the Hacken audit just validates whatever Soda Labs ships. if the circuit implementation is slow the audit doesnt fix performance, it just rubber seals a slow product
Mirela D. exactly. Hacken rubber stamping slow circuits helps nobody. need a benchmark standard for garbled circuit throughput before audits mean anything
Soda Labs garbled circuits being the bottleneck is the real story. COTI can partner with every auditor on earth, wont make the circuits run faster