In the current landscape of digital currencies, we see a few clear key elements emerging. For example, Bitcoin is a store of value, also called digital gold. Ethereum is a blockchain platform where anyone can start an ICO project and thus arrange smart contracts. These cryptocoins all run on the Blockchain, COTI comes with the Trustchain. Unfortunately, crypto coins are not yet widely used as a means of payment. Investing.com has had an interview with Shahaf Bar-Geffen the CEO of COTI. He is convinced that the digital currency will start using faster than we expect! What is COTI and what does the project want to achieve? COTI CEO Shahaf Bar-Geffen What is COTI What is COTI, a good question that we will answer you in a nutshell. The rest is explained below by Shahaf Bar-Geffen, CEO of COTI. COTI is a trustchain aimed at E-commerce. The company is developing a number of key elements on which the ecosystem should run. These include a cryptocurrency wallet, exchange, mediation system & a trustchain.
How will COTI ensure that it is decentralized?
The COTI network is self-built from the very first stone. The purpose of the COTI system is to be able to scale up payments aimed at the DAG structure. Many people are concerned about the so-called mine factories that are being started all over the world. Because of the PoW systems on which the Bitcoin runs, thousands of computers must be running to fulfill a transaction. With the new DAG system from coti this is no longer necessary, COTI is a Trustchain. Each new transaction is required to verify up to two other transactions to be added to the ledger, or the "cluster" as we conceived it. To accomplish this, the users are encouraged to run their own nodes working to validate transactions in the cluster. This effectively puts the responsibility in the hands of users who are incentivized with low-to-zero prices, fast confirmation times and high trust scores as a reward for their honest, trustworthy behavior.
Trustchain from COTI
We also have an additional safety net for tackling trust issues between parties who don't know each other and can never repeat transactions. Our mediation system handles all disputes that may arise during the transaction process, including billing errors, accidental transfers, unauthorized charges, and undelivered goods or non-conforming goods and services. COTI's approach to mediation involves leveraging an independent network of crowdsourced mediation resources to resolve disputes fairly and efficiently, without causing an increase in transaction costs. These mediation resources are remunerated for their efforts in COTI when they successfully contribute to consensus. To accomplish this, we believe we have found a compelling approach to reroute expensive third-party brokerage services that are common in traditional payment systems, P2P trading and online marketplaces.
How will COTI overcome the major hurdles in the payments world?
In day-based systems such as COTI, the increased network usage leads to better scalability. As such, there is a positive correlation between the number of network users and the speed at which transactions are confirmed. However, in chain-based networks, larger scale leads to negative effects on network usability. As the Bitcoin network has grown, the network has faced serious congestion, leading to higher prices and slower settlement times. The network can currently process about 20 transactions per second (TPS) on average, compared to COTI's throughput of 10,000 TPS. Additionally, as we develop a day-based consensus approach, we have averted the energy-intensive shortcomings of PoW blockchain systems and mining operations that have become incredibly costly to operate. COTI trust scores and mediation system add to our commitment to buyer-seller protections and reliability. It's something users have become accustomed to with legacy payment systems, but is clearly lacking for major cryptocurrencies to date. While technology is critical to making payments easier, regulation is just as important. COTI network participants are required to go through a Know Your Customer (KYC) process to meet global compliance standards. COTI has also applied for a license in Gibraltar as part of a global licensing process.
Why is COTI a better solution compared to existing payment systems?
There are a number of important points to distinguish why currency of the internet will live up to its name. The COTI Trustchain system is scalable because of the DAG system. Transactions can be confirmed faster and faster as the number of participants in the network grows. This will support the daily use of crypto coins. Direct payments instead of the Bitcoin waiting times of 30 minutes to 16 hours on average.
Users of the COTI network pay variable transaction costs. Depending on their trust score in the blockchain. Very trusted users with a low scoring percentage pay little or no transaction costs. Trust scores together form trust chains, which are used as part of the Trustchain. COTI develops its own mediation system or mediation system. This system resolves disputes between different parties and maintains the integrity of the network. COTI develops its own cryptocurrency exchange. This makes it possible to let users pay in FIAT and crypto coins through the Trustchain network.
The network will be extremely user-friendly, you will not have to use difficult methods to purchase a secure cryptocurrency wallet. COTI works in accordance with licenses and within the framework of the law.
What makes COTI a payment platform?
COTI works on the DAG system, Trustchain, mediation system, exchange and has a decentralized management. These are all features that no other cryptocurrency project has dared to sniff at.
What is the role of trust & trade in the COTI network?
COTI breaks new ground in terms of trust and trade. Trade is centuries old and is always accompanied by mutual trust. This is no different in the online world with digital payments, but it is difficult to check. COTI has a solution for this, namely Trust Score mechanisms. The Trust Score servers analyze usage data, user behavior and network payment statistics to calculate trust score for each COTI participant. This score helps users to assess whether potential parties they are going to trade with are reliable. COTI day-based consensus algorithm also uses Trust scores, which form collective trust chains, to efficiently achieve transaction consensus and validation. Trust scores encourage users to contribute to the quality of the ecosystem and serve as a proxy for how trustworthy a participant will become in fulfilling transactions under agreed terms. They also serve as an important driver of transaction costs: high scores are associated with low-to-zero fees, while the low scores are associated with relatively high fees.
How does COTI ensure a constant eco system?
We are not just a digital currency with blockchain technology. No, we are a completely new trustchain network developed for the e-commerce world. We have developed COTI to solve a worldwide problem, namely payment speed. We want to realize with our system that transactions cost almost nothing & are received directly by the trader. This is a great advantage for both the consumer and the merchant compared to traditional banks, credit cards and P2P platforms. What you will soon see is that merchants are able to spot fraudulent payments earlier. The consumer will be able to act freely with much faster transaction approval. COTI wants to lead digital currency to the next level in the mobile age. This requires broad acceptance, you only get this by supporting the use of coti.
How does COTI remain decentralized and in consultation with the constituency? COTI developed a decentralized voting right model. If the board wants to implement changes in the basic COTI protocol, a vote must be taken on this. For example, if one wants to import the 2,000,000,000 coti coins that are still there, this must first be voted on. This system allows coti coin holders to jointly vote on a decision. How does COTI enter into partnerships with large companies? Ideally, a bridge should be made between traditional payment solutions and digital currencies. That is why COTI developed a scalable payment solution, in addition to a unique Trust scoring engine, mediation system and a crypto exchange. We are also pursuing permits to cover Merchant processing solutions in Fiat currency. as well as the exchange and wallet functionality. Know your customer (KYC), anti-money laundering and treating customers fairly (TCF) standards will also regulate the COTI. Because the relative complexity of digital currencies has inhibited their widespread adoption in payment cases to date, a primary focus of COTI application design efforts is on making digital currencies as easy to acquire and use as their fiat equivalents. In addition, it will be critical to maintain instantaneous transactions, low-to-zero fees and buyer-seller protections, in addition to multi-currency support and network security. Over time, all of these factors will encourage more buyers and sellers to use COTI's processing tools to further enrich their cross-border e-commerce experience.
What is the advantage of crypto coins compared to credit cards? Digital currencies eliminate the need for third parties. This ensures faster transactions and lower transaction costs. This makes it easy to trade with anyone in the world. However, one important link is still missing, a payment system for the consumer and merchant. We respond to this with the COTI network that makes it easier to make payments in the e-commerce world.
Why should people start with cryptocurrency?
With digital currencies such as COTI, you pay low-to-zero fees for transactions. Transfers are instantaneous, meaning you don't have to wait for checks to clear. Digital currencies will also make online shopping and international trade much easier with higher clearance rates, bypassing the need for locally available payment methods. Where is COTI now and what is the ROAD MAP? The COTI ICO will start at the end of this month (April 2018) soon after this we will launch our COTI wallet. These are the first major milestones in our ecosystem. We have also signed a partnership with Processing.com, which will give us access to thousands of merchants around the world. We hope to launch our beta network at the end of this year (2018). Our ICO is well underway, we have already been able to raise a lot of resources. Demand is high, we expect COTI ico to be a great success.
How does the COTI Team distinguish itself? The COTI team includes the best people from the management world & Research and Development talent, veterans of the financial industry and blockchain experts. Our team of advisers and supports includes Greg Kidd (early investor in Twitter, square, Coinbase and ripple), Steven Heilbron (former CEO of Investec Bank UK), Dr. Matthew McBrady (former BlackRock CIO), the founders of processing.com and many other reputable Individuals.
Processing enters into collaboration with COTI Why does COTI lay the foundation in the payment industry? our first use case for the cluster, our Base Layer Protocol, is to disrupt the Payments Industry. It's a massive $ 2,000,000,000,000 market, but it is currently being monopolized by Visa and Mastercard. The payments sphere is certainly ripe for disruption if it has not been renewed for the past 40 years. Still, we don't intend to stop there. We can use the same protocol to trade the insurance industry and revolution among other major Tumbler in the future.