As global trade and e-commerce platforms are growing at an unprecedented rate over the past few years, the mobile payment systems have been exploding simultaneously and are expected to grow further at an even faster rate. However, the online and mobile payment systems are said to be having a constrained growth as they still have to overcome some issues being faced like high processing fees, long settlement periods, lack of multi-currency support and absence of a shared trust mechanism.
The arrival of digital currency backed by the decentralized blockchain technology has given a formidable challenge to the traditional banking systems by providing more secure, low-cost and instant transaction facilities. But off lately, the digital currency systems have been struggling to meet huge demand in terms of volume and speed and solving the scalability crisis is a new challenge in this regard.
COTI – Currency of the Internet – aims to solve these issues by providing a scalable blockchain payments ecosystem and establish a next generation payment solution that is instant, trust-driven, cost-effective and supports multi-currency wallet. It aims to do this by combining the best of traditional payment methods with the revolutionary distributed ledger technologies thereby facilitating mass adoption of digital currencies in the mobile era.
Key Features of COTI’s Blockchain Network
- The COTI’s blockchain network facilitates instantaneous remittance using DLT in the form of a DAG (directed acyclic graph) structure. The DAG-based consensus model is said to be more robust and easily scalable, unlike the existing chain-based models. Moreover, it has a positive correlation between the number of network users and rate of processing the transactions. This means the increased number of users leads to better scalability.
- Users on the COTI network pay variable fees according to their risk profiles. Trusted users have to pay little-to-zero fees while users with high-risk profiles need to pay higher fees. The COTI network has a global Trust Scoring Engine which assesses the interaction between buyers and seller and assigns each participant a unique trust score.
- The COTI network also comprises of a mediation system that works to solve the disputes between the transacting parties thus maintaining the integrity of the network.
- COTI is also developing is own currency exchange in order to provide users a continuous access to liquid markets in fiat and digital currency pairs.
- COTI’s user-friendly applications and services will make it easy for merchants and consumers easy to use its network. COTI will also provide merchants with hedging services in order to eliminate their exposure to near-term fluctuations in pricing.
COTI’s Undergoing and Further Plans
The COTI team is currently working on securing the necessary licenses for its currency exchange and payments network while complying with the existing regulations. It is also working on designing the frameworks which will boost the mainstream adoption of its digital currency.
It has currently applied for a DLT license with Gibraltar working with the regulators and establishing its legal framework for operations. It is looking forward to integrating banking industry compliance standards to prevent any sort of digital currency-driven illicit activities.
COTI is expected to launch the first phase of its network by the fourth quarter of 2018.
COTI’s Team and Its Native Token
The COTI platform is built by professionals who come from a varied industrial background like cryptography, banking, asset management and others. Its advisory team comprises of professionals from big financial institutions like HSBC, BlackRock, Investec Bank, Processing.com and Markets.com.
COTI’s native digital token will help in facilitating interaction between consumers, merchants, mediators and node operators.
More details regarding the COTI project can be obtained from its official whitepaper.