Business Strategy:
COTI is not the only project to see how lucrative the transaction payment space can be, they will have competitors from both the digital currency space and the banks/credit card companies. Let’s talk about how they can compete with all these projects and institutions.
We touched on one already, DAG will help with scalability, low to zero transaction costs and less overall network congestion. COTI will be decentralized, which is a huge advantage over your typical card network, but obviously other digital currency competitors will also be decentralized.
Next up is TPS — COTI will be aiming for 10,000TPS along with instant confirmations. This will mean they have a distinct advantage over most other digital currencies but will not be at the card network of 65,000 TPS.
Reliability — COTI will use independent mediators to achieve reliability. There will be a group of mediators who will not know the other decisions thus creating a system that is truly fair and efficient. This is a big problem for card networks when it comes to cross border payments — coti plans to take advantage of this.
This mediation system also allows for efficient and decentralized buyer/seller protection. This is another very costly area for card networks that they make up for via their higher fees.
Transaction costs — one of the more important items for the success of any project in this space. COTI will implement a trust-based mechanism for its users, simply put the higher your trust score the lower your transaction fees. Card networks rely on trusted 3rd parties (another hand in the cookie jar). Digital currencies are trustless and COTI will allow users to generate trust. Trust score is loosely based off Google’s search engine algorithm and will be calculated using the following parameters:
- Account balance; how many transactions have you engaged
- Dispute occurrences
- How many disputes have you won
- How many disputes have you lost
- User rating; do others like doing business with you
Regulation — COTI will be fully compliant and welcoming of any new regulations. This will be a huge advantage over other digital currencies that are mostly unregulated.
It should be noted that COTI will also be issuing their own debit card to help facilitate growth/acceptance
COTI will also allow other projects to build on their protocol which can add another avenue for revenue and demand
Coti will be focusing on the merchant to customer services but where they can really separate themselves from card networks is the peer to peer (P2P) market. They will be implementing their own wallet which will be used for any type of transaction but will have some nice features for the P2P segment.
Obvious one is individuals with COTI wallets will be able to make instant transactions
COTI wallets will be able to distinguish proximity and allow users to recognize a nearby wallet allowing for potential transactions
You can use your COTI wallet to store both digital and fiat currencies — these funds can be deposited via well-known digital currencies, bank wire, or debit card
COTI will have an exchange so that users can move from one currency to another — starting out with USD, EUR, GBP, COTI and other leading digital currencies