COTI - Digital currency built for payments

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The currency of the Internet

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COTI (Currency of The Internet) aims to build a decentralized and scalable payments network to facilitate efficient global commerce. Combining distributed ledger technologies with traditional payment solutions, COTI aspires to set a next-generation decentralized payment solution that is trust-driven, instant, and cost-effective. COTI sets itself apart from other payments solutions, by providing a thorough solution that consists of innovative trust mechanism, decentralized mediation system, multi-currency wallet (Fiat and Crypto) and native currency exchange. The driver of the COTI ecosystem will be the COTI coin, a native digital currency.

COTI’s distributed ledger is based on a directed acyclic graph (DAG) data structure, similar to the underlying technology of IOTA network. Using the DAG, COTI will allow 10,000+ transactions per second, much more than is needed (VISA peak hours requires ~4,000 t/s).

The team, which consists of 27 full-time members, is hard working on COTI and have laid out a detailed structure for their future network. COTI is to raise ~30 M USD via a private and public coin offering. They already attracted a large and dedicated community, and successfully raised ~10M USD in their private sale.

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What is this project about?

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As you can see on the right part of this slide, COTI values convenience, resistance to fraud, trust, being in compliance with the regulator, instant transactions, and zero/low fees.

• It is combination of the best what PayPal has with the best what Bitcoin has. Basically, advantages of cryptocurrencies and advantages of convenient credit cards. Of course, doing this, there will be some disadvantages because we cannot just pick the best out of something and forget about the bad things

• The main users of COTI will be buyers and sellers. Close example is PayPal. In reality, I feel that this is what ecosystem desperately needs, cryptocurrency that will be widely used by merchants

• Network is underpinned by 3 main components: trust scoring engine, mediation system, currency exchange. I cover those components on the platform slide

• XCTs are native currency and used for: fees, mediation, payments. Actually, XCTs have quite a lot of room to grow in comparison to other recently reviewed initial coin offerings

• COTI will create wallets and virtual debit cards for consumers, processing tools and hedging services for merchants

Did you know that there are $49.8 trillion of consumer-initiated transactions annually? Traditional currencies are responsible for 99.997% of all transactions, while cryptocurrencies take 0.003%.

• XCTs are going to be used as fuel for network to work and for sending payments. There are other usage cases, but this one is the most important one

• PayPal and cryptocurrencies are the main competitors of COTI project

• Success of the network will lead to the absorption of PayPal capitalization and capitalization of other cryptocurrencies

• COTI already has support from global payment solutions company, PROCESSING.com. This way it will be much easier to expand, using respected and experienced partners

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Backing technology

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The distributed ledger of COTI is based on directed acyclic graph (DAG) data structure, similar to IOTA. This structure will allow COTI to conduct over 10,000 transactions per second.

The project follows the know-your-customer measures along with anti-money laundering standards.

As for the restricted areas, COTI is not allowing quite a good number of countries to participate in this ICO viz. People’s Republic of China, Afghanistan, Bosnia and Herzegovina, Central African Republic, Cuba, Democratic Republic of Congo, Democratic People’s Republic of Korea, Eritrea, Ethiopia, Guinea-Bissau, Iran, Iraq, Israel, Libya, Lebanon, Somalia, South Sudan, Sudan, Syria, Uganda, United States of America, Vanuatu and Yemen as mentioned in its FAQ page.

The project has six backers and advisors apart from the main team that includes Dr. Matt McBrady, Steven Heilbron, Avi Chesed, Stas Oskin, Sebastian Stupurac, and Ophir Gertner who are the experts in the field of investment and blockchain.

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Token

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• Token Sale Begins: Jun 15
• Token Presale white-list: 21st May to 23rd May
• Max supply: 2,000,000,000
• Token for sale: 600,000,000
• Hard Cap: 30,000,000 USD
• Price: 1 COTI = 0.1 USD
• Accepts: ETH, BTC

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Timeline

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COTI began in 2017 and has been pursuing its main goals of the DAG data structure, merchant API, trust scoring and mediation mechanisms. Future milestones include:

Q4 2018: Prototypes of consumer wallet, payment system functionality, double spend protection, trust scoring, and a testnet launch.

Q2 2019: Launch of consumer wallet; full nodes launch; trust score server launch; and mainnet launch.

Q4 2019: international users and anti-money laundering measures; decentralised mediation; iFrame payment tool for merchants; currency exchange.

2020: debit card launch; hedging services; and recurring billing.

2021: Additional merchant services; funding third-party development projects; open to third-party payment networks

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The Problem

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Despite the intense competition within the online payment industry, neither digital currencies nor traditional electronic payments, has yet introduced a comprehensive solution for the online payment industry. While traditional online payment systems (e.g. PayPal and Visa) have the ability to scale high-volume of transactions, with fast execution time, they represent major drawbacks in terms of transactions fees. Mainly in cross-currency and cross-border transactions. On the other hand, Digital currencies could represent an alternative, as they have the potential to facilitate payments with greater security and lower transaction fees. However, in practice, they face scaling challenges, low rates of adoption in the context of online payments, and their price is very volatile. In fact, to date, only less than 0.1% of the online payments are made using digital currencies.

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Conclusion

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COTI does contain some similarities to Paypal, but even though Paypal is a multi-billion dollar company I do not believe it is time for COTI to be as successful as the team believes it can be. COTI has dedicated themselves to providing a positive user experience so buyers and sellers enjoy the payment platform with low fees, and high security.

The year of 2016 was the first time in history where cards surpassed cash as the leading method of payment globally. I believe it will take another 10 years for COTI to be accepted my a large portion of the population in the world, and that is if the crypto market is not declining like it has been. Due to the recent decline across the crypto market, buyers are less excited about digital currencies and a decrease in demand has fell over digital currencies. If the market continues on the trend that it is on I believe that crypto payments will not be needed as buyers and sellers will refer to the stable form of currencies such as cash, cards, and checks.

As a result of the explanation above, we list COTI at a low confidence speculative token. Although I do not see a future where COTI is leading payment platforms, the potential for success is still high for COTI if buyers and sellers are excited about conducting transactions with digital currencies. COTI has certainly put in place many functions to appeal to users all while providing a safe and low-stresss experience. These factors may influence users to the platform but due to the current state of the market and historical slow acceptance of new payment methods, I do not believe that COTI will make the immediate impact that is anticipated.

More information on the project ( COTI ) please visit their website listed below:

 WEBSITE: https://coti.io/

 WHITEPAPER: https://coti.io/en/files/COTI-technical-whitepaper.pdf?v=a059732e7d0

 ANN THREAD: https://bitcointalk.org/index.php?action=profile;u=1364597

 TELEGRAM: https://t.me/COTInetwork

 FACEBOOK: https://www.facebook.com/COTInetwork/

 TWITTER: https://twitter.com/COTInetwork

Author: Dulaj Dilshan

Bitcointalk: https://bitcointalk.org/index.php?action=profile;u=2053287

Telegram username: @sachindu15

Bounty0x username: @sachindu15

Thank You!