However, you will learn more about this profitable internet currency in the remaining part of this COTI review. The article gives detailed information<\/a> on the COTI coin, the protocol founders, what makes the protocol unique and secured, etc.<\/p>\n Contents<\/p> COTI is among the first global blockchain protocols centers on decentralized payments, with COTIPay as its first application. They see it as the first enterprise-grade and fintech platform designed for governments, merchants, stable coin, and payment DApp users.<\/p>\n They also designed it to empower organizations in building their payment solutions, including digitalizing all currencies to save time and money.<\/p>\n The COTI group launched the protocol in March 2017 and the Staking Platform on January 1st<\/sup>, 2020. The protocol targets raising $3 million through a public and private coin offering. They have won the attention of a large community that is dedicated. COTI successfully raised $10 million during their private sale, and COTI Pay is financed with full blockchain integration.<\/p>\n However, the COTI ecosystem is such that it will specifically meet all the challenges accompanying traditional finance. It introduces a DAG-based protocol and infrastructure that is private, scalable, and fast to meet these challenges.<\/p>\n These challenges are fees, latency, risks, and global inclusion. In addition, COTI based its distributed ledger on DAG data structure.\u00a0 This is similar to the IOTA network\u2019s underlying technology.<\/p>\n More so, a DAG-based blockchain, multi DAG, Global Trust System (GTS), and a payment gateway make up the protocol\u2019s ecosystem. It also contains a universal payment solution and a proof-of-trust consensus algorithm.<\/p>\n Using the DAG (Directed Acyclic Graph), COTI allows for over 10,000\u00a0 transactions in a second. This is even higher than what is required. For example, VISA peak hours require about 4,000 t\/s.<\/p>\n Samuel Falkon and David Assaraf co-founded the COTI protocol in 2017. Samuel has broad experience in the fintech industry and digital currency, holding various product development and sales management positions. He is the VP of business development at the COTI group and the Chief revenue officer at Paywize. Samuel fo Samuel founded Gil Scott Ltd before joining COTI.<\/p>\n The protocol\u2019s co-founder David Assaraf was a former HSBC internal auditor and Financial specialist. He previously served as an examiner in the credit risk unit of the Central Bank of Israel\u2019s banking supervision department.<\/p>\n David also co-founded Frequants and was a board member at an amusement park before joining COTI. The COTI team consists of 27 hardworking full-time workers laying a detailed structure for the network\u2019s future.<\/p>\n Shahaf Bar-Geffen is the protocol\u2019s CEO, a Serial Entrepreneur, and former CEO of a leading multinational digital marketing firm WEB3. Shahaf has a first degree (BSc) in biotech and economics from Tel Aviv University. Other team members include Dr. Nir Haloani, the CTO, Yair Lavi, the CFO, Costa Chervotkin, the Product Manager, etc.<\/p>\n The COTI protocol team designed the network in a bid to provide a decentralized payment platform. The mechanism involves integrating the advantages of both digital currencies and traditional payment systems. The four participants in the COTI ecosystem include node operators, end-users, merchants, and mediators. The protocol is made up of\u00a0 various components as discussed below;<\/p>\n COTI distributed ledger runs on a DAG (Directed Acyclic Graph known as Cluster instead of adopting a blockchain-based database. Each of the transactions in a DAG-based network validates two old transactions before they will be confirmed. This increases the confirmation rate of the transactions according to the rising number of users.COTI adopted the DAG idea as it allows them to asynchronously and simultaneously connect transactions.<\/p>\n The following nodes perform the Cluster:<\/p>\n Full Nodes:<\/strong>\u00a0<\/strong>These nodes are the network\u2019s user gateways. They select sources that new transactions attach to. They allow new transactions access to the Cluster and also perform proof-of-work (PoW).<\/p>\n Double Spend Prevention (DSP) Nodes:\u00a0<\/strong>The DSP nodes are responsible for tracking transactions to eliminate any possible attacks on double-spending. They ensure the maintenance of the updated Cluster copy at all times. To run a DSP node, you need to deposit a large quantity of the COTI token in a customized multi-signature account.<\/p>\n History Nodes<\/strong>: This node takes care of the Cluster history. You can retrieve the Cluster full account from them. The history servers of the COTI can serve as a proxy whenever the History node is not in operation.<\/p>\n In this mechanism, an unconfirmed new transaction selects previous transactions for validation to reach the consensus for transaction confirmation. The Trust Scores mechanism is another layer of data that COTI implemented on each user.<\/p>\n To Incentivize Users<\/strong>: In COTI, high Trust Scores are associates with low fees, while low Scores are for high fees. Also, low Scores are associated with merchants who roll reserve requirements.<\/p>\n Determining Trust Scores<\/strong>: The Trust Score of a participant is determined initially by the Document verifications and general questionnaires. They will be automatically updated with time using the following non-exhaustive criteria;<\/p>\n You can get more details on the mechanisms for determining Trust Scores in COTI’s technical whitepaper. The Scores indicate the participants’ ranking among themselves in the COTI network, determined through their accumulated contributions to the system.<\/p>\n However, the Trust Scores are comparable values plotted on the scale of zero to 100, with 100 as the highest score.<\/p>\n The Confirmation Process\u00a0involves validating two previous transactions within the same range by each new transaction. They combine to form Transactional sets or Trust Chains as more transactions enter the Cluster. Similar Trust Score thresholds are what characterize the Trust Chains.<\/p>\n The Trust Chain Consensus Algorithm ensures the incentivization of users with high Trust Scores (trusted users) with optimized transaction confirmations. This is on the basis that their Trust Chains reach the set cumulative Trust Score threshold faster.<\/p>\n In simple terms, the transaction confirmation time is directly related to users Trust Scores. The diagram below has the circle (67) in bold as the new transaction better shows the confirmation process. It validates the two transactions within its Trust Score. These transactions are then confirmed via the path of the highest trust within a period.<\/p>\n The path of the highest cumulative trust is bolded in green, while the cumulative Trust Score is bold.<\/p>\n Applying DAG structure alongside the Consensus Algorithm of the Trust Chains, the Cluster reaches a transaction confirmation rate of 10,000TPS. This is higher compared to the Blockchain network that confirms only 20 transactions per second. For example, Visa has an average confirmation rate of 2,000 TPS with a peak rate of about 4,000 TPS daily.<\/p>\n The COTI mediators don’t approve transactions; they are responsible for resolving disputes arising within the system. Mediators are needed when any of the following incidences take place;<\/p>\nWhat is COTI (COTI)?<\/span><\/h2>\n
The Founders of COTI<\/span><\/h2>\n
The COTI Ecosystem<\/span><\/h2>\n
1.\u00a0\u00a0 The Cluster<\/span><\/h3>\n
2.\u00a0\u00a0 The Trust Scoring Mechanism<\/span><\/h3>\n
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3.\u00a0\u00a0 The Mediation System<\/span><\/h3>\n
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