What is Coti Crypto?
COTI crypto is the first enterprise-grade fintech platform that enables companies to develop their own payment solution with digitized currencies.
COTI (currency of the Internet) is a Layer-1 platform based on the so-called Proof-of-Trust (PoT), the consensus that integrates a directed acyclic graph (DAG) data structure with the demands linked with traditional finance (TradFi). A DAG is a data structure that enables more efficient and scalable transactions.
What is Coti Crypto?
Basically, COTI crypto is the native token of the COTI ecosystem, with a total supply of two billion. It doesn't require PoW mining to secure the network and operates on three different mainnets: Trustchain, Ethereum, and BNB Chain.
The platform said it is focused on building "the next generation" of digital and financial products encompassing aspects of the new digital economy.
To tackle scalability issues that most blockchains have, COTI incorporates Trustchain, a DAG-based data structure, and Proof of Work (PoW) to develop the Proof of Trust consensus mechanism.
The name of COTI DAG is "the Cluster," a distributed ledger that records transactions on the network.
But COTI DAG doesn't aggregate all transactions into blocks. Instead, transactions are lined one after the other. For a new transaction to be confirmed, the validating nodes must link it to two prior transactions. The decision on the type of transactions that should be linked depends on their Trust Score.
According to the official explanation, “in the PoT system, validators are selected based on their trustworthiness".
That means each user and node in the Cluster is rated on their Trust Score. This is calculated based on historical behaviour, including payment statistics. The higher the Trust Score, the quicker their transactions can be processed and the lower the fees".
After the user transacts on COTI, the Source Selection Algorithm non-selectively designates two validating nodes with similar Trust Scores. Because of that, transactions from trusted users are usually confirmed much faster. Scalability is ensured because transactions with different Trust Scores are parallelly processed and are, therefore, more secure.
However, one must understand that when talking about the Proof of Work, in COTI, it isn’t implemented in the way we’re used to. It doesn’t depend on mining to earn trust. PoW here exists only to protect COTI from spamming attempts and encourage network users.
Finishing PoW tasks enables validators to connect the transactions to the Cluster, but it doesn't promise that this will actually happen. It depends on their Trust Scores. These are also used for setting the PoW levels that can impact transaction fee levels. With no mining required, COTI can operate with very low transaction fees.
COTI Crypto MultiDAG layer
One can compare the COTI MultiDAG ecosystem to that of Ethereum. Few independent DAGs exist on the network, all with individual goals. They each preserve completely customized tokens and apps, but run simultaneously on the same infrastructure to increase efficiency.
The COTI MultiDAG 2.0 will allow companies, entrepreneurs, and developers to issue tokens with Trustchain-like performance, such as scalability, high throughput, low cost, etc.
Users can also construct their own stablecoins supported by cryptocurrencies, fiat money, or even exist as non-collateralized stablecoins with the MultiDAG.
One of the examples is Cardano's stablecoin Djed, of which COTI is an official issuer.
Recently, the CEO of COTI crypto, Shahaf Bar-Geffen gave a fantastic insight into what COTI crypto represents and explained how he sees things surrounding blockchain technology in particular.
Bar-Geffen said he knows blockchain technology has expanded from a "niche and highly specialized subset of information technology" to become one of the modern era's most popular and in-demand solutions."
And COTI represents exactly that - driven partially by Web3-empowered assets such as cryptos and NFTs, COTI became a worthy actor within numerous sectors, like supply chain management. This has been a true sign of its positive utility.
Bar-Geffen said that blockchain has proven to be a secure, transparent, scalable, and trustworthy form of storing and transmitting data among a limited or unlimited number of users. They added that it is unsurprising that blockchain infrastructure spending will increase to about $20 billion by 2024.
Author: Teuta Franjkovic
A sincere writer with a strong will to share knowledge on all things blockchain, crypto, metaverse and DeFi. Starting out as a writer with Cosmopolitan, Teuta has risen through the ranks of business journalism, editing newspapers and websites within the fintech industry for over 15 years. She holds a double MA in Public Politics and Entrepreneurship.