What is COTI?
The vision of COTI or Currency Of The Internet is to be a finance ecosystem built on a blockchain. According to COTI
, the current problems lay with traditional financial systems, which are often slow, expensive and not inclusive.
At the core of COTI’s solution is it’s own and new type of Directed Acyclic Graph (DAG
) infrastructure. Other projects like IOTA also use this type of structure due to its ability to scale. COTI uses a Proof of Trust Consensus Algorithm. This algorithm provides every user with a certain Trustscore. The Proof of Trust is then combined with a Proof of Stake consensus mechanism to reach network consensus. Thanks to the Proof of Trust algorithm users are incentivized to show good behaviour since they will get lower fees, higher rewards and better service if they do.
COTI also implemented a cross-chain interoperability feature allowing other blockchains to identify both malicious and good actors on their own networks. Additionally, the vision of becoming a finance ecosystem is achieved by enabling independent DAG clusters to operate within the overlying COTI network. These can be used for other applications like stablecoins. The COTI token is used to pay the fee for every transaction occurring on the network, regardless of it happening on an independent cluster. Users can run a full node with which they get rewarded a percentage of every transaction that is processed by their node.
What is a Directed Acyclic Graph?
In contrast with blockchains
, a Directed Acyclic Graph does not consist of transactions grouped in blocks which are then stored in a single chain. Instead, the individual transactions are entangled together. The structure also enables better scalability. More activity means faster confirmations of transactions.
Who founded COTI?
The idea arose in 2016 with David Assaraf, Shahaf Bar-Geffen and Samuel Falkon. Samuel said the following;
We quickly realized that just as the financial industry has it's own secure, comfortable and recognized ways of transacting, we too needed to come up with a solution to make crypto payments as easy as fiat.
The team of COTI is built from experienced individuals who earlier held positions at Ripple
(former CRO), IBM (former head of research), Investec bank (former CEO) and Blackrock (former CIO).
COTI vs other cryptocurrencies
In some ways, COTI could be described as the Ethereum of finance. While Ethereum
does not focus on a single use case but rather on a wide range of applications. COTI solely built its network to become an ecosystem for financial applications. This possibly results in a better fit for these types of use cases. For example, scalability is an essential requirement for finance, since the need for fast and cheap transactions is a priority. COTI provides this with its DAG infrastructure; according to the team, the network is able to process over 100.000 transactions per second.
How can I use COTI?
You can use COTI just like any other currency or another form of money. It can be used to pay for services and goods, or for trading. If you are looking to invest in COTI for the long-term, make sure you store your COTI safe, preferably on a cold wallet.
Can I earn money with COTI?
Yes, you can earn money by trading COTI (COTI
). Buy low, sell high. Be aware that cryptocurrencies have proven to be volatile, and losses can follow profits. Always trade responsibly.