COTI – A Digital Currency for Trusted Blockchain Payments

COTI – Currency of the Internet – is a blockchain-based digital currency that aims to drive the mass adoption of virtual currencies in this growing age of mobile era and exploding global e-commerce. Online payments or mobile payment solutions are witnessing a rapid growth facilitating global commerce, however, they have been able to do little in terms of improving the user and merchant satisfaction.

A few areas where the mobile payment systems still find inadequacies are high processing fees, lack of multi-currency support, long settlement periods and absence of a shared trust mechanism. Although some of the issues are solved by the use of digital currencies backed by blockchain technology, the decentralized payment systems are now seen facing scalability issues while lacking the ability to scale in terms of volumes and speed. As a result, digital currencies have still not found its use as a means for daily transactions.

COTI wants to overcome all of these issues by having its own digital currency operating on its DAG based consensus model by blending the best of distributed ledger technologies and traditional payment methods.

COTI’s ultimate vision is to have a decentralized and scalable network that is trust-driven, cost-effective, instant and supports multi-currency wallet. Thus it wants to build a comprehensive payments system that will help COTI to spearhead the mass adoption of digital currencies.

COTI’s Payment System – Features and Services

  • COTI makes use of a DAG-based consensus model which is said to be more robust and scalable over the existing chain-based blockchain models. The DAG (directed acyclic graph) structure facilitates instantaneous remittance using the distributed ledger technology. It also offers a positive and direct correlation between network usage and scalability i.e. higher the network usage, better is the network scalability.
  • The COTI ecosystem has a Trust Score Engine which automatically assesses the interaction between merchants and consumers and assigns them a unique trust score. Based on the trust score, it will assign variable transaction fees. Highly-trusted participants will have low fees while other with low trust score have to pay high fees.
  • The COTI network comprises of a mediation system in order to solve any disputes between the transacting parties thereby maintaining the integrity of the network.
  • COTI will also establish its own currency exchange which provides a continuous access to liquid markets either in digital or fiat currency pairs.
  • COTI will be developing its own suite of applications and services in order to provide network participants a seamless connectivity to the COTI network. COTI’s own debit card and wallet services will allow for the secure storage, transmission, and exchange of digital and fiat currencies.


COTI’s Execution Plans

The team at COTI is working on getting licenses and laying a foundation for the operation of its payment network and currency exchange while complying with the existing regulations. The COTI team believe that digital currency-specific frameworks will help to boost their mainstream adoption.

The team has also applied for a DLT license with Gibraltar and is in talks with its regulatory bodies to formulate the legal framework. It is also applying for banking industry compliance standard in order to prevent any sort of illicit activities involving digital currencies.

COTI will be launching the first phase of its project by the fourth quarter of 2018. More details can be obtained through its official whitepaper.

Christine Marshall

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