Overview :

COTI is a payments transaction network supported by a native digital currency. By combining the best of traditional payments with the best of distributed ledger technology, COTI aims to set the standard for how payments should work in the digital currency era.

At COTI we’ve not only built a digital currency, but an entire digital payment ecosystem. COTI’s DAG-based consensus model, Trust Scoring Engine, Mediation System, currency exchange and decentralised governance are all hallmarks to the functioning of the COTI network.

COTI payments network was designed to take over where traditional payment systems left off, namely with instantaneous transfers, low-to-zero fees and cost effective buyer-seller protections. This is a major advantage for consumers and merchants alike as compared to traditional banking, credit cards and P2P platforms.

What is the need :

The online payment industry is currently encompassing over 1.6 billion people worldwide with annual transaction volume that exceeds 3.265$ Trillion. According to recent researches, the industry is expected to show an annual CAGR of 13.5 % between 2018-2022, resulting in the total amount of $5.411 Trillion in 2022. Along with the growth in the market value, the industry is rapidly changing. New forms of commerce are springing up, and the power balance within the industry is changing. In accordance with the spread of mobile devices like smartphones and tablets, the mobile payments volume is swiftly rising and expected to gradually capture a sizeable market share within the online payment market. The rapid growth and changes of the industry, has raised the demand for faster, easier, more scalable, and more reliable payment systems.

Problem with the current system :

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.

The following table represents the major benefits and drawbacks of traditional payment systems and digital currencies, along with COTI objectives:

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