Nowadays, cryptocurrency is one hot topic in the spectrum of economy and technology. With its current significant growth, many countries in the world have opened their door for cryptocurrency, and they even embraced it — with some intense reviewing, adaptations and adjustments according to their set of laws, of course. automatic!
More and more people are being introduced to cryptocurrency and for those who already did; they are getting even more involved. Daily usage of cryptocurrency experienced great deal of growth since people are and will be using it even more in the future. While the mainstream cryptocurrency usage for regular basis seemingly is one step away to be put into fruition, we actually are still far from it — for it is no simple task by any means.
We currently have the traditional payment methods. It is not slow, not ineffective and not undependable by any means, no — in fact, it’s quite fast and reliable — with over one billion of users. A couple of examples would be Visa and credit cards, which perhaps we use almost every day. This traditional payment, however, suffered from several drawbacks, such as:
- High processing fees (Such as annual and late fees) that is imposed to both merchants and customers;
- Long settlement period, in which payments can take up to two weeks to settle and for the merchants to be paid credit scores;
- Absence of a shared trust mechanism, where credit scores and ratings are marketplace-specific and non-transferable across platforms;
Lack of multi-currency support, where cryptocurrency cannot be supported yet.
These drawbacks faced by traditional payment is what Currency of the Internet, or COTI, is trying to overcome, by improving and combining the best things in both traditional payments and cryptocurrency.
With the presence of COTI, the problem which was present in the traditional payment will undergo repairs.
COTI distributed ledge, or we know it as The Cluster, is based on directed acyclic graph or DAG — where DAG usage allows the creation of decentralization without sacrificing payment confirmation speed. In fact, it has an almost instant-like speed and possibly with even smaller fee.
Inside the cluster, they have the trust chain algorithm system. This feature is used to confirm transactions — bassicly each transaction contain with user trust score, to be added to the cluster new transaction must validate two transaction before them with a similiar trust score, it’s great because it promote a healthy / honest ways of transaction, where people will put more effort for their credibility for gaining a good trust score.
In order to determine the trust score’s participants, documents verification will be conducted and general questionnaire will be issued. Automatically, the trust score will change according to the level of participant’s activities inside the system — thanks to the payment data and data in general that were acquired by the system.
THE MEDIATION SYSTEM
In business, disputes between merchants and customers are often happened, which were caused by whether the goods’ price was wrong, goods was different with its description, or paid goods has yet to arrive. To counter these disputes, COTI offers to mediate them using a system called Mediation System. Inside this system will be present an independent moderator tasked with resolving any issues by giving votes for said issues. Who’s the right side? Was it the merchant or the customer?
There will be several mediators but they aren’t aware of each other’s presence. They also can’t communicate with each other — this was done in order to keep a sense of objectivity for all the mediators resolving issues and making decisions. If the buyer (customer) “wins” in a dispute, he or she will be given refund from the seller’s (merchant) funds. On the other way around, if the seller wins, no actions will be taken.
Later on the COTI networks, the main payment method will be using COTI — all fee and incentives for the mediator will be paid using COTI. This does not necessarily mean that COTI is not supportive of other payment methods by using FIAT or any other kind of cryptocurrencies, but using COTI will give us more benefits like faster purchase confirmation and cheaper fees.
Another benefit in using COTI is that the users connected on its network will be able to conduct or receiving payments regardless of the currencies — independent from our respective business partners. For example, it is possible if we want to send payment with COTI as the currency while our business partner is expecting USD — and they shall receive it, courtesy of COTI’s network
Roadmap
The following roadmap by COTI below shows us the amount of time required in order to accomplish what was mentioned before. While full service of COTI is expected around 2019, a prototype of the service will undergo test phase at the fourth quarter of this year.
Team & Advisor
Conclusion
COTI is a cryptocurrency that promotes honesty and trust in its network system through the trust score mechanism. COTI also tries to solve problems in the payment system using the principle of decentralization and by maintaining (while improving) existing system like the Visa with its primary features like the aforementioned trust score, the mediation system and the ease of conducting and receiving payments.
COTI’s mission is highly ambitious and brave — after all, COTI has to deal with Visa and credit card which has existed for a very long time and thus, more “experienced” payment method in this business. That said, the mission is not impossible, considering the growing sophistication of technology and the “opportunity” COTI has — which is, the weaknesses of traditional payments like the fees and such. This allows COTI to create a decentralized system, all while perfecting the traditional payment methods. As user, we will benefit from it since technological growth and rivalry will always present.
Written by: mamacita (bounty0x)
More info:
https://coti.io/
https://t.me/COTInetwork
https://www.facebook.com/COTInetwork/
https://medium.com/@COTInetwork
Update :
- COTI has partnered with globaliD to further advance its secure and seamless user experience when onboarding and managing users. Read the full update "COTI partners with globaliD for seamless identity verification" - @COTInetwork https://medium.com/cotinetwork/coti-partners-with-globalid-for-seamless-identity-verification-23eec3cae5ff#---0-396