Cardano Stablecoin DJED Goes Private and Open-Source

Focused on privacy and security, DJED will be molded into a multi-chain asset, providing the foundation for both open and private finance.

Open-Source Features

Announced at the Rare Evo blockchain conference and shared to CryptoPotato via a news release, COTI, the EVM-compatible, privacy-focused Layer 1 (L1), unveiled the next step in DJED’s development.

Recall that the algorithmic stablecoin was introduced in 2023 alongside IOG (now IOHK), an infrastructure, research, and engineering blockchain company founded by Charles Hoskinson and Jeremy Wood.

Three major upgrades are designed to propel DJED into a new type of digital asset, introducing a new class of use cases and further bolstering its position as core infrastructure for Web3.

It has consistently held its peg since inception, outperforming its peers and making it one of the more robust stablecoins on the market. COTI is now open-sourcing key parts of its infrastructure (order API, chain indexer, frontend) to encourage developers and communities to build around it.

Software engineers will be able to build custom front ends for it, integrate the stablecoin’s functionality into wallets or decentralized applications (dApps), and run secure backend services to interact with it.

IOG noted the following:

“Open sourcing DJED gives Cardano developers the ability to inspect, extend, and build directly on the protocol, with transparency, driving faster innovation and deeper trust.

This is a complex system engineered for uniquely high assurance: it’s grounded in formal methods, backed by extensive testing, and has been running reliably on mainnet for 2.5 years.”

DJED, Private, And On Multiple Fronts

COTI will also introduce Private DJED, the first enterprise-ready, private stablecoin, which will launch across several blockchains. By open-sourcing DJED, the privacy layer will provide a wrapped version of it on its infrastructure.

The private iteration will be suitable for companies, institutions, and users who value privacy alike. Sending and receiving, as well as interacting with it, will be confidential; however, COTI’s capabilities extend beyond the coin’s current capacity, allowing it to be incorporated into more complex dApps and DeFi flows

The secure and private computation-focused Layer 1 is powered by garbled circuits (an encryption method), which provide reliable and scalable privacy-oriented infrastructure that will help DJED lead the way for privacy-first financial primitives

Currently, the Cardano chain is the home of DJED’s infrastructure; however, the private version will ensure that its foundation is prepared for the next wave of adoption. The layer’s programmability will ensure that users can decide how, when, and with whom they will transact.

Additionally, they will be able to send and receive the stablecoin privately, ensuring that only the parties they select will be aware of the amounts sent and their respective addresses, while remaining compliant.