Summary

COTI is a Layer 1 blockchain ecosystem designed specifically for payments. Unlike traditional blockchains, COTI does not rely on Proof of Work (PoW) or Proof of Stake (PoS) to verify transactions. It uses a unique consensus algorithm called Proof of Trust (PoT), which combines the Directed Acyclic Graph (DAG) data structure with Proof of Work (PoW). PoT can reduce transaction costs and increase throughput to 100,000 TPS.

Its native token COTI is a cryptocurrency running in three different mainnets. COTI is used to pay transaction fees and can also be pledged in the vault to generate rewards. You can also use COTI and other cryptocurrencies to pay for goods and services with the COTI Visa Debit Card. COTI MultiDAG 2.0 allows developers, merchants and enterprises to issue tokens that inherit Trustchain features such as scalability, high throughput, low cost and easy-to-use payment tools (such as COTI Pay Business).

Introduction

COTI is a blockchain ecosystem that promotes fast and secure trade. It aims to revolutionize the traditional financial system by eliminating intermediaries and empowering organizations to build proprietary payment solutions and digital currencies or stablecoins on top of the Trustchain protocol.

What is COTI?

COTI is a Layer 1 fintech blockchain ecosystem designed specifically for payments. COTI is introducing a low-cost, fast, scalable, private and inclusive new DAG-based protocol and infrastructure to actively address various challenges of centralized and decentralized finance (CeFi and DeFi). It uses a Proof of Trust (PoT) mechanism that combines a Directed Acyclic Graph (DAG) with a Proof of Work (PoW).

How does COTI work?

COTI hopes to fully participate in the new digital economy and create a new generation of financial and digital products. Although built at the bottom, COTI can be seen from Layer 1 to applications, and it will develop into a comprehensive ecosystem.

Scalability has always been a challenge for mainstream blockchains such as Bitcoin (BTC) and Ethereum (ETH). They all process transactions using blocks, which are regularly added to the evolving blockchain. There is then a waiting period before the block is accepted, and the transaction takes a long time to be confirmed. For example, Bitcoin can only handle about 20 transactions per second, while Visa can handle 65,000 per second.

The COTI network is built on Trustchain, a Layer 1 blockchain protocol that uses a directed acyclic graph (DAG) data structure. It can significantly reduce transaction costs and increase throughput to 100,000 transactions per second (TPS).

Proof of Trust (PoT)

In order to solve the scalability problem, COTI will use Trustchain (a technology based on The data structure of DAG) is combined with Proof of Work (PoW) to build a proof-of-trust consensus mechanism.

COTI DAG is called "cluster", which is a distributed ledger that records network transactions. Transactions will not be included in blocks collectively, but will be arranged sequentially. For a new transaction to be confirmed, validating nodes must link it to two previous transactions.

What transactions are specifically linked to? It depends on their trust score. The PoT system selects verifiers based on credibility. Every user and every node in the cluster is rated by a trust score, which is calculated from historical behavior and payment statistics. The higher the trust score, the faster transactions are processed and the fees are correspondingly lower.

When a user initiates a transaction in COTI, the source selection algorithm will randomly assign two verification nodes with similar trust scores. As a result, transactions from trusted users will be confirmed faster. Transactions with different trust scores can be processed in parallel, thus enabling scalability and ensuring network security.

COTI does not apply PoW according to conventional methods and does not rely on mining to gain trust. PoW is only used to protect COTI from spam and to incentivize network participants. After completing the PoW task, the validator can incorporate its transaction into the cluster, but it may not be successful. It all depends on the validator’s trust score, which is also used to set the PoW level which may indirectly affect transaction fees. Since no mining is required, COTI can operate normally with extremely low transaction fees.

MultiDAG layer

The COTI MultiDAG ecosystem is similar to that of Ethereum. There are multiple independent DAGs with different purposes in the network. They each maintain fully customized tokens and applications, but simultaneously run on the same infrastructure, improving the efficiency of the entire network.

COTI MultiDAG 2.0 allows developers, merchants and enterprises to issue tokens that inherit Trustchain features, such as scalability, high throughput, low cost and easy-to-use payment tools (such as COTI Pay Business).

Users can use MultiDAG to create exclusive fiat-collateralized stablecoins, cryptocurrency-collateralized stablecoins, and even unsecured stablecoins. For example, COTI is the payment system for Cardano’s (ADA) stablecoin Djed and the payment system ADA Pay.

Token Issuance Service

After the release of MultiDAG 2.0 mainnet, COTI can support corporate customers to issue stable coins and other digital currencies using COTI MultiDAG technology. Advantages of this service include reduced transaction costs, scalable infrastructure, privacy modules, and full access to technical support from the COTI team. Clients also have the flexibility to issue tokens as needed when costs are limited.

Djed

Djed is powered by COTI and is the first algorithmic stablecoin built on Cardano. This is a stablecoin based on algorithmic design. Djed stabilizes currency prices through smart contracts. This token helps the stable operation of decentralized finance (DeFi). Djed is more than just a stablecoin built on the Cardano chain. It hopes to become the ultimate token for paying transaction fees across the Cardano network.

COTI Pay Business

Through the COTI Pay Business product, merchants can use new COTI native assets to receive payments from retail transactions with merchants. COTI's Trustchain and MultiDAG adopt a secure and stable innovative infrastructure to support merchants and enterprises of all sizes to leverage COTI technology at a limited cost.

COTI Vault: Deposits and Earnings

COTI Vault is an algorithm-based decentralized $COTI pool that allows users to deposit $COTI and receive participation rewards. The $COTI pool will also grow over time as the entire ecosystem pays into the treasury directly or indirectly. All fees for COTI products will be directly deposited into the treasury and distributed to users as rewards. COTI will also launch a governance token this year. Governance tokens will be issued to vault users and participants who contribute to the vault’s growth. Holders can debate, propose and vote on changes to the protocol.

What is a COTI token?

COTI token is the native token of the COTI ecosystem. It is a DAG-based cryptocurrency with a total supply of up to 2 billion. COTI does not require PoW mining to ensure network security. COTI runs on three different mainnets: Trustchain, Ethereum and BNB chain.

• Trustchain: COTI’s native mainnet.

• Ethereum: COTI exists in the form of ERC-20 tokens on the Ethereum network. It is traded on some cryptocurrency exchanges and applied to DeFi DApps.

• BNB chain (formerly known as "Binance Chain" and "Binance Smart Chain"): COTI's BEP-2 and BEP-20 version.

COTI token holders can use the COTI bridge to interoperate between different networks (mainnet). In addition to paying for services within the ecosystem, COTI can also be deposited into the COTI vault and participate in DeFi staking. The vault then distributes COTI rewards to users.  

How to buy COTI on Binance?

You can buy COTI on cryptocurrency exchanges such as Binance.  

1. Log in to your personal Binance account and access [Trading]. Choose between Standard or Professional trading modes.

2. Click [BTC/USDT] in the upper left corner and search for "COTI". View all trading pairs offered, such as COTI/BUSD.

3. Visit the [Spot] area and enter the quantity of COTI you wish to buy. You can use different order types, such as market orders. Click [Buy COTI] and the tokens will be deposited into the spot wallet.

Summary

The cryptocurrency space needs a Layer 1 solution that caters to the consumer-merchant payment model, and COTI is meeting this need through DAG-based Trustchain. According to the R&D team, the COTI network will grow exponentially in 2022, expanding from one token to enterprise tokens, merchant tokens, governance tokens, Djed and many other tokens. In addition, COTI is establishing partnerships with more projects and merchants, which is expected to create numerous new use cases for the platform in the near future. All fees in the COTI ecosystem will be deposited directly into the treasury and distributed to users as rewards.