CoinMarketCap takes a deep dive into a decentralized and scalable platform for a vast range of financial services for merchants, governments, payment DApps and stablecoin issuers.
Coti (COTI) is a next-generation payment solution that offers high transaction throughput and low fees. It achieves high transaction throughput by storing transactions in a directed acyclic graph (DAG), which is more akin to a graph than a blockchain.
COTI enables a more efficient structure for data storage and online transaction processing. Coins like IOTA, Nano and Obyte work within the DAG framework. COTI’s DAG model contributes to addressing two of the most talked-about pain points of existing blockchain technology: decentralization and scalability.
How Does COTI (COTI) Work?
COTI provides fast and price-stable payments via direct merchant-facing tools without the use of financial intermediaries. Besides that, the network can process up to 100,000 transactions per second, far outpacing many traditional payment systems and blockchains whilst also ensuring the same level of stability and protection. Furthermore, the platform includes a dispute resolution mechanism to guard against user errors and fraud and employs the Trust Chain Algorithm.
Scalability without increasing energy consumption is a challenge for most protocols that use a blockchain-based ledger, such as Bitcoin, ETH or Litecoin. COTI uses DAGs to resolve this issue. COTI's DAG is referred to as the Cluster, and each transaction is symbolized by the user's Trust Score.
To add a new transaction to COTI’s ledger, token transactions must be linked to two prior transactions that have a similar Trust Score threshold. As the Trust Score gets higher for the user, so does the transaction throughput and quick confirmation times. The transactions’ confirmation time is correlated with the users’ Trust Scores. Unlike PoW projects, which linearly approve transactions, the cluster connects transactions concurrently and asynchronously, thereby resolving the scalability problem.
The native token of the project operates on three separate main nets.
To begin, the COTI coin runs on the Trustchain network. Second, the COTI token as an ERC-20 token also runs on the Ethereum network. Finally, a BEP-2 version of the token is only available on the Binance cryptocurrency exchange. Because it is a globally accepted standard, most exchanges use the ERC-20 COTI token. The native COTI coin, on the other hand, serves as the sole unit of account and common means of payment for transaction fees and other tasks throughout the ecosystem. Holders can also convert tokens and coins between main nets by using the COTI bridge, which enables interoperability between all main nets.
The DAG, which serves as the protocol's base layer, is the core technology on which COTI is built. It is well-known for its high transaction throughput and scalability. This technology can be found in coins such as IOTA and Nano.
The Team Behind COTI
The core team is made up of 27 full-time employees, including engineers, mathematicians, economists, researchers, and veterans from the fintech and banking industries.
David Assaraf (Co-founder)
David previously worked as the chief internal auditor at HSBC Israel and as an examiner in the Bank of Israel's banking supervision department's credit risk unit.
Shahaf Bar-Geffen (CEO)
Shahaf is the former CEO and co-founder of WEB3, a leading multinational digital marketing firm. Shahaf graduated from Tel Aviv University with a BSc in biotechnology and economics.
Nir Haloani, M.D. (CTO)
Nir is a pioneer in data compression, artificial intelligence and machine learning. He was the former co-founder and CTO of Infima Technologies and has over 19 years of experience leading research and development teams at a variety of tech companies. Nir graduated from Tel Aviv University with a BSc in computer science and mathematics and a Ph.D. in applied mathematics from Bar-Ilan University.
Yair Lavi (CFO)
Yair was Plus500UK's former CEO and finance director. He has also previously worked in financial planning and valuation. He is an accountant, a graduate in accounting and economics, and holds an MBA from Tel Aviv University.
To learn more about COTI’s team, click here.
COTI (COTI) Roadmap
The roadmap is organized around the following major themes:
COTI Pay — Develop everything related to consumer-oriented offerings, such as the Viper wallet, bank accounts and debit cards issued by Visa and Simplex, the COTI Pay app for all platforms and more.
COTI Pay Business — Create merchant-focused products like credit card processing, Blockchain Dollars, Ultra eWallet, etc.
Infrastructure — Develop more on the Trustchain, nodes, staking, etc.
Licenses and Regulation — To legally handle conversions from fiat to crypto in a regulated manner, licenses, such as an EMI license, will be obtained.
DeFi — Develop code for the benefit of the DeFi community, including work on a decentralized Crypto Volatility Index.
For a complete list of developments, check out the entire roadmap here https://coti.io/files/COTI_Development_Roadmap.pdf.
Unique Features of COTI
DAG-Based Distributed Ledger
The DAG model differs from the blockchain structure in that the framework implements nodes that can be developed concurrently. The DAG model, which is similar to a tree structure, is more efficient at storing data and allows for more transactions to be validated at the same time; essentially, greater network usage results in improved network scalability. The DAG model will allow for instantaneity and zero fees. Users do not have to wait for a transaction to finish before beginning to process a new one. Transactions are processed faster than on blockchains using PoW or PoS consensus when more nodes are developed at the same time.
Proof-of-Trust
COTI's proof-of-trust algorithm is a practical alternative to the proof-of-work algorithm, which is energy-intensive. Proof-of-trust is a combination of PoW and Trustchain algorithms.
COTI's proof of trust consensus does not rely on the inefficient and energy-consuming PoW mining process. COTI implements a Trustscore to each network user and uses DAG to solve the scalability issue. The purpose is to promote good network behavior, which will result in lower fees and higher service standards. Every new transaction must be linked to the two previous connections, resulting in the formation of a chain gradually. This chain is known as the Trustchain. The Trustchain algorithm uses user Trust Scores to determine how much proof-of-trust (PoT) is required to confirm a transaction. It rewards users with a higher trust score with a faster confirmation time. The PoT consensus mechanism doesn’t only save energy but also confirmation time.
COTI Token
This is the network's native token that can be traded on DEXs and also serves as a low-to-zero transaction fee payment method. Stakes and payouts are denominated in COTI coins, and node operators are incentivized for their activity through them. Additionally, all network transaction fees can be paid with COTI coins.
Creation of Stablecoins
Fiat-collateralized, crypto-collateralized, non-collateralized and other stable currencies are developed through the COTI MultiDAG on top of the Trustchain. Stablecoins can be created either by COTI or even by third parties.
The COTI network also allows for the creation of dedicated coins that are used as currencies by companies. Dedicated coins can be used for rewards programs, special offers, coupons and other purposes. They function similarly to stablecoins.
MultiDAG and Smart Contracts
The COTI MultiDAG ecosystem is similar to the Ethereum ecosystem. Many different tokens and smart contracts, as well as one main coin for fee payments, are built on a common decentralized infrastructure. One token can be supported by each COTI Cluster. All of these tokens can be implemented on top of a DAG. The ClusterID distinguishes different Clusters in the COTI MultiDAG at the transaction layer. The COTI MultiDAG's Clusters all follow the same validation and KYC standards, resulting in a borderless crypto world with a wide range of tokens.
COTI smart contracts also work similarly to Ethereum’s smart contract, in that they are built on-chain and in a decentralized fashion.
Before receiving full confirmation, all steps of smart execution are documented in the COTI MultiDAG's specialized Cluster and validated several times by various Full Nodes. The network does not require a gas fee because the DAG is a block-less structure. Fees for COTI smart contract execution are set to be as low as possible.
COTI Pay
COTI Pay is an online and offline payment service that processes both crypto and fiat payments. COTI Pay also gives the option of credit cards and merchant-specific coinage to its users. In addition, users of the service may be eligible for business loans and earn interest on deposits.
The COTI Visa card is a physical crypto debit card and bank account service that will integrate with COTI Pay. Fast and secure payments, loyalty awards, fiat-crypto purchases and cashback benefits are all available to COTI Pay users. The COTI Pay network serves as a payment gateway for goods and services. COTI Pay, as a result, lowers the barriers to merchants upgrading their payment infrastructure and eliminates costs paid to intermediaries. Accepting cryptocurrency as a payment method on merchant websites opens up new avenues for business.
COTI (COTI) Tokenomics
COTI is a DAG-based cryptocurrency with a limited supply. Because there are no mining activities associated with the network, there is no way to create or destroy COTI tokens. Since its inception, the total supply of COTI has been 2,000,000,000 COTI, of which 868,672,118.03 COTI is in circulation.
While 30% of the tokens were distributed during the token sale, 45% were kept for incentives and various reward programs on the network for community members and node operators, 15% was kept for the team as an incentive for continued engagement, and 10% was kept for the advisors for their efforts. Except for the 45% of total tokens intended for incentives, the remaining tokens are locked up and gradually released over a set period.
COTI (COTI) Price
COTI (COTI) is now trading at around $0.3698, as of Dec. 7, 2021. Its 24-hour trading volume on exchanges is around $75,737,635.
COTI (COTI) Price Prediction and Future Outlook
COTI has been hailed by many crypto experts as one of the underrated cryptocurrencies with huge upside potential. The ''currency of the internet'' gained 900% this year and as of now sits at $0.489, close to its all-time high of $0.6826.
Decentralized payment processing is still an untapped market in the world of crypto, as crypto experts claim that billions are going to flow into this sector in the near future. When this happens, COTI Pay, which is one of the flagship products of the Coti platform, could explode. And with this advancement, the price of the COTI token can also reach new highs. The next target can be seen at $1, and the future targets depend on the competition Coti faces in the world of decentralized payment providers.
Features such as loyalty programs, financing, DeFi and staking are just some of the features that make the COTI token a powerhouse for major investors to trust and lock up their investments: @CotiWhaleAlert Twitter account tracks such major whales.
Moreover, COTI is an ERC-20 token and with the ETH 2.0 update on the horizon, all major tokens on the Ethereum platform may likely skyrocket. If this happens after COTI reaches $1, the next target of the coin would be $2 or more.
In summary, 2021 has been a great year for COTI, which started out at $0.05 and quickly spiked to reach $0.5 in March 2021. However, the COTI token's price was negatively impacted by the major dump that started in May, where it went as low as $0.09, only to bounce back up and steadily made an all-time high in November.
Considering all the aspects, the COTI token seems like a good investment; however, the crypto volatility comes unannounced, so it is advised to do your own research and invest wisely in this token and the crypto world in general.
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