DAG vs. Blockchain

While blockchain based projects dominate the cryptocurrency game, there are some projects that use an alternative technology: DAG (Directed acyclic graph). The main difference with DAG is that it does not use the blockchain, but rather a method where transactions are linked together in a manner where each transaction confirms the next. This structure has multiple benefits, mainly including scalability and lake of proof of work. The absence of proof of work means that the coin does not have to be mined. Usually this creates a structure where all coins are minted at the genesis of the coin, but this may not always be the case. Current DAG cryptocurrencies include IOTA, NANO, and Byteball. Another project is attempting to join that group - COTI.

COTI Overview

COTI has two large goals: provide a transaction option with scalability as well as ensure that their network is decentralized. These features are pretty common among projects using a DAG structure, however COTI has an additional feature: A mediation system for dispute resolution. Heres a snippet from the COTI whitepaper explaining the Mediation Service:
"COTI offers a ready-to-use service a user can revert to in cases of fraud or any other dispute related to transactions settled through the COTI payment system. The Mediation Service creates a rolling reserve for each merchant to cover possible claims and a system-wide Reserve Credit Fund (RCF) to further guarantee it. Both funds are maintained in COTI’s native currency, and the required size of a merchant’s rolling reserve is calculated based on the merchant’s Trust Score."

Transaction Fees

Projects based on DAG structures typically have very low transaction fees, and COTI is no different. COTI's transaction fees are determined by the node that is being used, and it is most likely that fees will be extremely low, if they are present at all.

Project Roadmap

The COTI development team has outlined the below roadmap:

• Phase 1 Milestones — Q4 2018
  — Testnet launch with prototypes of the consumer wallet, full node, DSP nodes, history node, and trust score server.
• Phase 2 Milestones — Q2 2019
  — Launch of the consumer wallet (iOS, Android and web applications with initial support for USD, EUR, GBP, BTC, ETH and COTI), full/history/DSP nodes, trust score servers, and mainnet as well as release of decentralized mediation prototype.
• Phase 3 Milestones — Q4 2019
  — Launch of the decentralized mediation system and application, the KYC/AML server, payment processing tools (API, iFrame), and exchange.
• Phase 4 Milestones — 2020
  — Launch of the debit card, hedging service, and recurring billing (subscriptions).
• Phase 5 Milestones — 2021
  — Expansion of merchant services, launch of the mediation SDK and the COTI fund.

Token Allocation

Total amount of Tokens: 2,000,000,000
Supply for sale: 600,00,00
Token Price: .1 USD per COTI
Sale date: June 15th to July 15th

Use of Proceeds

One thing to point out regarding this sale is that ERC-20 compliant tokens are given out initially for the sale, and the these tokens will be converted to the formal COTI token that is outlined in the whitepaper at a later date.

Personal Score: 7/10

This project seems very interesting, and I like that it has features other DAG related projects don't have, such as the Mediation Service. However, I'm not sure if this is quite enough to separate COTI from the other projects with DAG structures that promise high scalability and decentralization. I think this project will find some success, but I think it will have a tough time competing with projects such as IOTA and NANO.

If you are interested in reading more about this ICO, please check out their website! Thanks for reading, Steemians!