Coti Crypto: Instant Payment Around The World

As we know, traditional finance is plagued with many pressing issues such as merchant fees and cross-border barriers. Digital currency transactions powered by blockchain technology offer a potential solution. However, it is not perfect either because of its low transaction speeds, delays in payment confirmations and many scalability issues.

Using a combination of blockchain technology, directed acyclic graph (DAG) technology and a unique consensus algorithm, the Coti network provides an unprecedented level of security, scalability and low transaction costs for users, thereby eliminating many existing concerns in the global payment industry.

Read on to learn all about this groundbreaking payment network that promises to revolutionize the way people process payments around the world.

What Is the Coti Protocol?

The Coti protocol is a unique enterprise-grade Layer 1 proof of work (PoW) blockchain protocol with a DAG structure that can achieve almost instant transaction consensus thanks to its speed of over hundreds of thousands of transactions per second (TPS).

Coti seeks to become a global payment network by enabling instant payments to the world for all online transactions through its flagship product — COTI Pay. Coti also strives to empower global organizations by allowing them to build their own payment solutions on the Coti platform through the use of stablecoins. Businesses can create their own branded stablecoins with Coti’s unique MultiDAG technology. The DAG structure is popular for enabling solid scalability and massive transaction throughput. Many popular cryptocurrencies like Nano and IOTA have adopted the DAG protocol for this same purpose.

How Does Coti Protocol Work?

Coti offers an end-to-end digital finance solution for global enterprises worldwide. By accessing COTI Pay, companies can set up their payment gateways in no time. 

COTI Pay allows consumers to make payments in interoperable COTI ERC-20 tokens. Payments are made even more seamless and convenient with Coti’s universal payment solution (UPS) which processes instant payments for merchants and allows consumers to customize their preferred payment methods (both crypto and fiat). 

This eliminates cross-border payment difficulties, and companies get to save on operational expenses. This also increases the reach of companies as their customers can pay using their preferred currency. 

The Coti protocol also enables enterprises to develop and issue customizable stablecoins via its white-label payment network, COTI Whitelabel. For instance, a company can create a stablecoin in its own name and peg its value to fiat currencies like the USD or EUR. With this, companies can avoid intermediaries while not worrying about the volatility of cryptocurrencies. The COTI Whitelabel even allows companies to issue their own loyalty programs on COTI Pay.

The best part? The adoption of Coti services has already begun. Popular blockchain network Cardano has partnered with Coti to issue an overcollateralized algorithmic stablecoin, DJED, for its own network. DJED is now live on Cardano mainnet. 

Key Features of Coti Protocol

Trustchain MultiDAG Protocol 

Coti runs on a multiDAG protocol known as the Trustchain. This protocol can validate multiple transactions simultaneously instead of waiting for one transaction to complete before processing a new one. 

There are no gas costs in this network as transactions are not processed in blocks, with only minimal fees required for smart contract executions. Therefore, Coti’s Trustchain MultiDAG protocol allows faster processing times while reducing gas fees. 

And as a MultiDAG structure, Coti has independent Clusters that can support their own tokens. This enables dedicated stablecoins to be generated for businesses to build their private payment networks, such as Cardano’s launch of its stablecoin DJED. 

Innovative Consensus 

Contrary to the typical PoW algorithm, Coti uses a new consensus mechanism known as proof of trust (PoT). This consensus does not require miners to solve complex algorithms, and hence it does not require huge amounts of energy. Instead, COTI introduced a concept known as Trust Score. The intention behind this is to encourage good network behavior and reward high trust score members with faster confirmation times and lower fees. 

Coti Trust Score

The Trust Score is a fundamental innovation in the Coti protocol which plays a crucial role in the network's functioning. Trust Scores apply to all actors in the network – nodes, users, merchants and financial institutions. 

Source: Coti Trustchain Technical White Paper

The Trust Score has a value ranging from 0 to 100, with 100 being the highest possible score. Transactions of similar scores are connected together, and transactions from actors with higher scores will be confirmed at a much faster rate and much lower fees. Hence, network participants are incentivized to act in a trustworthy manner.

While the Trust Scores may be computed differently depending on the participant’s role, Trust Scores will generally increase over time as each actor continues to participate in the network. Meanwhile, a Trust Score of zero means that the actor has committed a malicious act and is banned from using Coti.

Arbitration Service

Coti also provides added protection to its buyers and sellers with the Arbitration Service which helps to monitor and manage disputes. The Arbitration Service is made up of a decentralized party of highly trusted network actors known as jurors who vote on disputes. Jurors then earn a fee from their ruling. They are incentivized to vote honestly because after a ruling is made, if the juror’s vote differs from the group, they will lose their arbitration fees.

What Is COTI?

Launched in 2019, COTI (Currency Of The Internet)is the native cryptocurrency of the entire Coti ecosystem. It has immense utility within the network, such as paying transaction fees, node incentives and rewards for staking COTI tokens. 

What Is COTI Used For?

As mentioned, COTI plays a crucial role in the functioning of the Coti network. Apart from fueling the interaction between merchants, consumers and mediators, COTI is used as a reward currency for participants who contributed to the network's functioning. Below are a few areas where the utility of the COTI token can be found.  

Network Fees 

COTI is used to pay fees for all transactions within the network. The token is also used to pay arbitrators and node operators who run the COTI protocol.

Node Operator Rewards

Every node operator must stake COTI coins to validate a transaction in the network. All the incentives for these operators will be in the form of COTI. Depending on the type of node, the minimum amount of COTI required for staking will differ.

Arbitrator Fees

Arbitrators must hold COTI to engage in arbitration and resolve disputes between buyers and sellers in order to earn COTI fees. 

Staking Rewards

You can deposit your COTI in the COTI Treasury to earn more COTI. The treasury has an annualized percentage yield (APY) that is adjusted every 60 seconds according to the treasury balance. The rewards are auto-compounded with a multiplier of x1, but you can adjust your risk/reward level up to a multiplier of x8. Note that while you can remove your staked COTI at any time even if you set a locked period, an early withdrawal fee of up to 2% of your deposit will be charged. To avoid paying the withdrawal fees, you can change the locked period to unlocked, but you will not be able to withdraw your COTI for a minimum of 24 hours. 

COTI Price Prediction 

Source: CoinGecko

COTI first entered the market at $0.09 in June 2019 and traded below $0.10 for over one year. From early February 2021, COTI price began to scale, climbing to $0.50 by mid-March. It fell over the next few months to $0.09 in July, before rising rapidly to its all-time high at $0.67 on Sep 29, 2021. Since its record high, however, COTI has been sliding down the price chart and dipped below $0.10 again by November 2022, slipping into the $0.05 position by December. In early 2023, COTI price has risen slightly to reach the $0.10 support level. 

Price prediction experts mostly anticipate a modest increase for this coin. Digital Coin Price expects COTI price to reach $0.35 in 2025 and cross the $1 mark in 2030. Price Prediction is relatively more bullish on COTI in the long term and expects its price to hit $0.30 in 2025 and exceed $3 by 2030. 

Is Coti Protocol (COTI) a Good Investment? 

While COTI may not see a huge leap in its prices over the long run, you can expect a gradual but steady increase, thereby making it a relatively safe investment. This is because the Coti protocol strives to be a full-fledged financial ecosystem with plentiful use cases. With its solid use cases within the network, COTI is bound to increase in value if the Coti protocol positions itself as a market leader. Its partnership with Cardano also signifies the growing strength of the protocol, and as it continues to make strong partnerships with major blockchains, COTI would be seen as a valuable coin to hold indeed.

Please note that the above is not financial advice and you should always do your own research before investing in volatile altcoins.

Where To Buy COTI

COTI can be bought on popular decentralized exchanges like Uniswap v3 and PancakeSwap, and on top centralized exchanges such as Bybit. On Bybit, you can trade COTI as a derivative. Derivatives involve a contract where you will be betting on the asset's future price and not on the actual asset.  

At Bybit, we have made derivative trading simpler by pairing altcoins with USDT. All the USDT Perpetual Contracts on Bybit are quoted and settled in USDT. Sign up on Bybit to trade COTI as a USDT Perpetual (COTIUSDT).

Closing Thoughts

Coti is a revolutionary digital payment network that offers an innovative approach to the existing online payments landscape. With its cutting-edge technology, Coti is setting new standards for safe and secure transactions with unprecedented speed and low fees. As more merchants begin accepting cryptocurrency as a payment option and seek an all-encompassing financial ecosystem for seamless online payments, demand for COTI will likely increase significantly over time.