COTI- One stop payment solution for all commerce!!

May 16, 2018

The cryptocurrency market seems to be growing in popularity every day. With the astronomical rise of cryptocurrencies like Bitcoin and Ethereum, there seems to be few disadvantages in terms of Scalability. The cryptocurrency market is plagued with a litany of delays across almost every type of transaction. From opening a trading account to verifying your identity and being able to make deposits and withdrawals, the system seems to be quite slow. Blockchain technology ought to make transactions occur faster but it seems to take forever for transactions to be approved on the various chains.

Issues having to do with scalability have been identified by experts as being the cause of transaction delays. As the blockchains become longer, more transactions are being held up in the queue awaiting approval. The market is volatile and as such, delays can be costly. Traders end up missing out on favorable positions because the transaction didn’t get posted on time. All types of commerce — including peer-to-peer transactions, online marketplaces and cross-border eCommerce — are becoming commonplace. Payments networks do not accommodate these forms of commerce effectively, resulting in high fees and low approval rates.

These are just some of the nagging issues in the cryptocurrency market that threaten to affect the quality of the trading experience. It is vital that key stakeholders in the market continue to work on efforts to combat these issues. As the market grows and evolves, it is hoped that some of these issues will become a thing of the past.

COTI- A digital currency built for payments

A team from CANADA is developing a next generation payments network that would go on to be widely adopted by buyers, and sellers. COTI hopes to be the catalyst for mainstream adoption of cryptocurrencies in payment use cases. It hopes to bring change by acting as the digital currency of the internet, or first to receive widespread adoption in consumer transactions. Currently, payment platforms are failing to provide forms of commerce effectively, resulting in high fees and low approval rates. COTI’s payment system is built to solve the payment challenges of today and provides users with a greater peace of mind.

Core components

The COTI network is underpinned by three core components: the Trust Scoring Engine, the Mediation System and the Currency Exchange.

Trust Scoring Engine

A key source of friction in commerce today is the lack of reliable metrics pertaining to the trustworthiness of a buyers and sellers. The difficulty in assessing the trustworthiness of prospective counterparties undermines confidence and reduces the likelihood of potential transactions being seen through to completion, particularly in cross-border scenarios. While the reputation systems within online marketplaces address this problem in part, such systems tend to generate reputation scores based on user ratings alone, are subject to abuse by parties with vested interests, and are typically not transferrable to other marketplaces or contexts.

Mediation System

COTI’s Mediation System serves to protect buyers and sellers in the event of transactional disputes arising within the network. While the Trust Scoring Engine adds a layer of trust to all COTI network transactions, and imposes disincentives on behaviour that is dishonest or unfair, the Mediation System provides a backup mechanism that facilitates dispute resolution in an effective and cost-efficient manner whenever such disputes occur.

Currency Exchange

COTI aims for its payments network to be versatile with respect to currencies. To this end, COTI is developing a currency exchange that provides network participants with continuous access to liquid markets in a range of digital and fiat currency pairs. COTI will create wallets and virtual debit cards for consumers, processing tools and hedging services for merchants.

Advantages OF COTI

COTI has several characteristics which position it as the first digital currency that is fit for consumer-initiated payments use cases and will enable it to drive down transaction fees, drive up approval rates, and empower the world to unlock its full potential to engage in commerce:

Usable

Through a variety of apps and merchant tools, COTI is simple enough to be used by any consumer and straight-forward enough for any merchant to start accepting.

Zero-to-low fee

Consumers never incur fees when paying with COTI, while merchants incur low-to-zero fees depending on their behavior over time.

Instant

Coti always settles transactions instantly and, like the major card networks, scales to process tens of thousands of transactions per second.

Fraud-resistant

Coti protects end-users from their own errors and from fraud — it’s the first reversible, mediated digital currency.

Compliant

Coti is built on strong regulatory foundations, and is non-anonymous, committed to anti-money laundering, and built to adapt to regulatory changes.

Token

The token is a native currency called XCT; the company has not determined which blockchain they will be connecting to their internal ledger platform per the white paper. COTI’s native digital currency sits at the center of the COTI network and fuels the interactions between consumers, merchants and mediators. XCT was purpose-built to overcome the barriers that have limited the widespread adoption of digital currencies in day-to-day payments. All fees incurred in the course of using the COTI network are payable in XCT. The levying of fees denominated in XCT applies to all transactions, irrespective of the currency being used to affect the underlying payment. Mediator stakes and payouts are always denominated in XCT. As such, mediators will be required to hold XCT units whenever they wish to engage in mediation. XCT functions as a medium of exchange that can be used when making and receiving payments for goods or services.