I discovered the cryptosphere this January, at its last all-time high. I had no idea about the technology behind the projects, so I was just following others’ advices. As you all know, plenty of people just use to promote the projects they have already invested in. I was trying to find a project someone was promoting without clearly naming it and just giving several clues about it. I didn’t manage to spot it, but instead of what I was trying to find, I discovered a project that not too many people were talking about, until the recent weeks. Funny or not, it is one of the few projects that I am still interested in, after learning the hard way what picking the wrong ones can lead to. I consider it a gem, because it has a solid technology behind, while lacking that irrational hype. :)
I’m going to talk about it, so that you can see why I think it’s such an exciting project (from my point of view, of course) and, generally speaking, how I find or choose which projects deserve my attention. You can then decide if I’m right or not about it. I’m really curious about your feedback, as it always helps me improve.
DISCLAIMER: This is NOT financial advice!
This being said, let’s have a look at COTI. If you didn’t guess yet, it’s an acronym for the Currency of the Internet. Big words, you might say. Well, their ambitions are big as well. They describe themselves as being the “digital currency built for payments”. This is what they are actually focused on: payments. It’s nothing new, you could say. You’ve seen and heard this so many times already, haven’t you?
Well, let me tell you something... I know that people like to compare things, in order to determine their value, so just think for a second: don’t we already have plenty of payment methods in our old financial system? If you agree, than I have to ask you this: how many of them are as big as PayPal? Why PayPal? Because this is what I see COTI to be like, when the product will be ready and fully functional. There are simply too many similarities, given their vision and mission. As we'll further dive into COTI, you'll see what I mean.
What do I check first for having a first impression on any project’s ability to succeed? The team behind it, of course! This 20 member Israel-based team has a vast expertise, in fields like: AI, data compression, machine learning, mathematics, cryptography, blockchain technology, finance, banking, etc.
They are connected, one way or another, with companies like: HSBC, PwC, Credit Suisse, Societe Generale or IBM. This looks like a solid team and they definitely have big plans for the future, since they have already gathered the specialists they need, even if the public sale has not started yet. And I am not talking about 4-5 people, but 20 people already!
What’s next on my to-check list? The advisory board for sure! The 13 advisors have extensive knowledge in fields like: finance, business administration, blockchain technology, cloud services, etc. They held or hold influential positions, such as CEO, CIO, CRO, or they are “just” university professors or blockchain experts, being related to companies like BlackRock, Ripple, Coinbase and J.P. Morgan Chase. Pretty impressive, I would say. They certainly have what it takes to provide guidance and insights to the team, on the real needs for innovation in the financial space, in regards to payments, a two trillion dollars industry!
Even an excellent team, backed by experienced advisors, won’t be able to develop a unique project without that brilliant idea and vision of something not only original, but also disrupting and game-changing. In COTI’s case, the team designed everything from the scratch, with the vision of creating a product suitable for payments, for a future where digital currencies will replace the cash and cards that we now use.
It aims to be “the next generation of digital currencies”, merging the benefits of the traditional payment systems and digital currencies into a single, easy to use, platform. It won’t be just another currency, but also a payment platform, built on the following pillars: decentralisation, scalability and instantaneity, reliability, security, low-to-zero fees, trust, ease-of-use and regulatory compliance. What’s the result? Lower fees and enhanced security for the end user, who still has to deal with the high fees and delayed approval of the traditional payment systems!
Now that we know what their idea and vision is, let’s see how the COTI team plans to achieve all those ambitious targets. Without going too technical (you can read the Whitepaper if you want more detailed explanations regarding the technology behind it), it must be mentioned that the comprehensive payment ecosystem that COTI aims to develop will have a set of key features:
- the Cluster, based on distributed ledger technology, with a DAG (directed acyclic graph) structure, for instantaneous remittance
- a global Trust Scoring Engine, that will be responsible for assigning a unique Trust Score to each network participant. This is a way to reward the users that are fair and honest, as they will benefit from lower costs and enhanced fluidity
- a mediation system, based on game theory and data science, for maintaining the integrity of the network and resolving disputes between transacting parties
- a currency exchange, to aggregate liquidity from internal and external liquidity pools
- a suite of applications and services, such as: COTI wallet and debit card, to facilitate the secure storage, transmission and exchange of digital and fiat currencies (for consumers); processing solutions for payment acceptance, in a variety of fiat and digital currencies and lower fees (for merchants); a dedicated client, to contribute to the transaction disputes’ resolution and be rewarded for it (for mediators).
I think that I must emphasize something, for those of you who are still rather skeptical: COTI plans to be fully legal compliant, given the field that it plans to disrupt, even if it will have to face some challenges, as there are some aspects that still need some clarifications, when digital currencies are involved. They are aware that the legal framework may be different for each country, so this is why they are working with legal experts from all around the world. Without this, they will not be able to compete with plenty of old-system companies that already have a clear legal framework to comply with. It is anyway just a matter of time and COTI seems confident to become a road opener for potentially other projects from the cryptosphere.
More than this, COTI will not be a security, if you were curious about this detail that tends to fuel so many discussions.
I strongly recommend you to check the Whitepaper! If you have enough time to read it, you’ll see how ambitious this project is and how it precisely aims to achieve its goals. The technical aspects are pretty impressive, if you ask me! When the final product will be released, this will open new perspectives for the cryptosphere, as we know it.
They have a detailed roadmap, with precise milestones:
As you can see, their Mainnet will be live by July 2019, but their Alpha will be released much sooner, in August 2018.
The token metrics were carefully chosen, as you can see below:
I will not explain it too much, as I am trying to present why I think that this project is worth taking a look at, from a technological perspective, and not because of its token metrics, even if, as already mentioned, that looks great as well!
I hope I managed to explain the project in such a way, that even newcomers will understand what it’s all about! If I failed, then please let me know and I will add more information to this article! I strongly believe that a brief explanation is the best way for people who have no idea about something to start to grasp that concept.
Let me be very clear about this: I don’t try to promote this project at all costs! I just honestly believe that it is one of the important projects in the cryptosphere and it will change this space, once it will be fully operational! I really think that quality must be promoted, because there is simply too much mediocrity around us! Just take a look at the team, the advisors and the technology they will implement, and you’ll understand why the future’s bright for COTI!
In several years, we’ll look behind and see that PayPal is not anymore the giant we used to know. Who will take its place? I can’t predict the future, but, if I would have to take a guess, I would say COTI, without any doubt!
If this will be the case, you can thank me later, for letting you know! For me, it’s just an offer I can’t refuse and the beginning of a beautiful friendship. You just have to decide for yourself, after doing your own research.
You know how good ol’ Dirty Harry used to say: “You’ve got to ask yourself one question: ‘Do I feel lucky?’ Well, do ya, punk?”.
If your answer is “yes”, than COTI is your way to go.
If not, may the Force be with you, because you’ll need it! :)