COTI Partners with Porta to Power Confidential Transactions on Private Smart Wallets

Wallets are the cornerstone of any cryptocurrency project, serving as the critical interface between users, networks, and applications. However, the growing number of security breaches and privacy concerns in the web3 space highlights the urgent need for enhanced wallet protection.

In 2023 alone, there were 35 security incidents involving wallets, resulting in asset losses exceeding $600 million. The total losses from hacks, phishing scams, and rug pulls in web3 reached a staggering $2.02 billion. Major wallet incidents like the Solana wallet breach ($6 million loss) and the BitKeep wallet hack ($1 million loss) underscore the severity of security challenges facing web3 wallets.

At the same time cryptocurrency adoption is skyrocketing. By November 2023, encrypted wallet users reached 221 million, nearly tripling from 81 million in 2022. Coinbase alone reported over 103 million verified users for their wallet brand, with analysts predicting Bitcoin adoption could hit 10% worldwide by 2030.

This user explosion proves cryptocurrencies are going mainstream. It also makes wallets a prime target for hackers. Millions of new users are at risk.

Strong privacy features in wallets aren’t optional anymore — they’re essential for web3 to grow safely and sustainably.

To address these issues and leverage COTI V2’s advanced privacy-preserving features, we’re pleased to announce our partnership with Porta, who are developing account abstraction-enabled smart wallets.

Porta: Smart wallet with integrated trading features

Porta is developing a smart wallet and trading platform powered by Ethereum’s ERC4337 account abstraction upgrade. Their roadmap includes integrating trading tools typically found in decentralized and centralized exchanges into their wallet.

This integration allows users to perform various exchange functions within the wallet interface. Beyond basic token swaps and yield farming, PortaWallet aims to offer features such as stop loss, take profit, and limit orders.

The wallet also plans to include trading features like adjustments to liquidity ranges, automatic liquidity provision, and customizable flows based on user preferences. A positions manager and analytics dashboard are part of their planned offerings to help users manage their assets and trading activities.

How COTI V2 enhances Porta’s wallet privacy and security

COTI V2’s confidentiality layer, built on groundbreaking garbled circuit technology, will enable Porta to implement several critical privacy-enhancing features:

Confidential transactions: Transaction amounts and participants can be hidden from public view while still allowing for verification, mitigating the risk of financial surveillance.
Private balances: Wallet balances can be kept confidential, protecting users from becoming targets of attacks or unwanted attention.
Secure on-chain data management: Sensitive wallet data can be stored and processed on-chain without exposing it to unauthorized parties, enhancing overall data protection.

Joshua Behar, CEO of Porta, commented on the partnership:

“Integrating COTI V2’s privacy technology into our smart wallets represents a significant leap forward in user protection. This collaboration allows us to offer the advanced trading features our users expect, with the added benefit of robust privacy safeguards. We’re excited to work with COTI to set new standards for wallet security in the web3 space.”

Advancing web3 wallet privacy and security

This partnership represents a step towards making privacy a standard feature in web3 applications. By combining Porta’s smart wallet functionality with COTI V2’s confidentiality layer, we aim to significantly improve the security landscape for digital asset management.

As blockchain technology continues to evolve, collaborations like this one between COTI and Porta will aim to address the privacy challenges that have hindered adoption.

By prioritizing user protection alongside functionality, we’re working to create a more secure and user-friendly web3 ecosystem for everyone.