Ethereum's virtual machine (EVM) standard, which defines how smart contracts execute on the network, is increasingly becoming the foundation for competing blockchains and layer 2 solutions rather than remaining exclusive to Ethereum itself. This shift reflects a broader industry trend toward EVM compatibility as a way to attract developers and users seeking Ethereum-level security and familiarity without the network's congestion or high transaction costs.

Why Are Other Blockchains Adopting Ethereum's Technical Standard?

The EVM (Ethereum Virtual Machine) is the software layer that processes and validates smart contracts on Ethereum. By adopting EVM compatibility, other networks allow developers to deploy the same code they wrote for Ethereum without major rewrites, dramatically lowering the barrier to entry for building on new chains. This compatibility has become a competitive advantage in attracting developer talent and liquidity.

COTI Network, a privacy-focused blockchain project, exemplifies this trend. The project is retiring its original Trustchain-based Layer 1 blockchain and replacing it with an EVM-compatible Layer 2 solution designed to support privacy features. According to the foundation, this shift began with the Mainnet launch of the newer chain and is now entering its final phase, with the legacy system targeted for retirement by the end of Q3 2026. The move reflects a strategic decision to align with the EVM standard rather than maintain a proprietary blockchain architecture.

For users and developers, this transition means greater interoperability. Legacy COTI holders can bridge their assets to the new EVM-compatible chain using standard Ethereum wallet tools like MetaMask, eliminating the need to learn proprietary wallet software or bridge mechanisms.

How Are Projects Managing the Migration to EVM Compatibility?

Migrating from a proprietary blockchain to an EVM-compatible layer 2 requires careful coordination to avoid disrupting active users. COTI's approach provides a practical roadmap for how projects handle this transition:

• Staking Pool Pause: The foundation paused its Treasury staking pool on August 13, 2026, at 10:00 AM UTC, giving legacy holders a final deadline to move their assets before the old chain retires.
• Multiple Migration Paths: Users holding assets on centralized exchanges require no action, as exchanges have already switched to the new standard. Those holding ERC-20 tokens in MetaMask or Ledger wallets can keep their assets unchanged, while native holdings in the staking pool or VIPER wallet require manual swaps through the project's interface.
• Advance Notice Period: The foundation committed to announcing the official retirement date at least 30 days in advance, giving users time to complete the switch and avoid service interruptions during the changeover.

This phased approach reduces the risk of stranding user funds or creating sudden liquidity gaps. By offering multiple pathways for different asset types, COTI minimizes friction for users with varying technical expertise.

What Does EVM Expansion Mean for Ethereum's Role in Web3?

The proliferation of EVM-compatible chains and layer 2 solutions does not diminish Ethereum's importance; rather, it extends Ethereum's technical influence across the broader blockchain ecosystem. Developers who learn to build on Ethereum can now deploy to dozens of EVM-compatible networks, creating a shared developer ecosystem that benefits from Ethereum's security research and tooling maturity.

COTI's expansion into privacy-focused EVM features illustrates how projects are using EVM compatibility as a foundation while adding specialized capabilities. The project is rolling out private ERC-20 assets and an upcoming privacy portal on its new chain, leveraging Ethereum's token standards while building features tailored to specific use cases. This pattern is repeating across the industry, with projects adopting EVM compatibility as a baseline and then differentiating through specialized features like privacy, speed, or real-world asset integration.

For Ethereum itself, this trend reinforces its position as the reference standard for smart contract execution. Rather than competing directly with Ethereum's base layer, other networks are essentially extending Ethereum's reach by adopting its technical framework. This creates a network effect where EVM familiarity becomes a competitive advantage across multiple chains, and Ethereum's developer ecosystem becomes the training ground for builders across the entire Web3 space.

The migration of projects like COTI to EVM compatibility also signals confidence in Ethereum's long-term technical direction. By aligning with the EVM standard, projects are betting that Ethereum's upgrades and security improvements will benefit their own networks through shared tooling, research, and developer knowledge.