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What Is COTI (COTI)? All You Need To Know

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coti

Key Takeaways

  • COTI (COTI) is a token that powers the COTI project, a directed acyclic graph (DAG) protocol designed to optimize the creation of decentralized payment networks and stablecoins.
  • COTI aims to empower organizations by enabling them to build payment solutions and digitize any currency. It aims to address issues like latency, fees, and global inclusion within the traditional financial system.
  • COTI is undergoing significant changes by transitioning its infrastructure from its DAG protocol to a privacy-centric Layer-2 network on the Ethereum blockchain.

What Is COTI (COTI)?

COTI, which stands for Currency Of The Internet, is a blockchain-based payments infrastructure company founded in 2017 by Shahaf Bar-Geffen, Dr. Nir Haloani, and David Assaraf. The project aims to create a scalable and user-friendly platform for digital payments, leveraging blockchain technology to offer fast, reliable, and low-cost transactions.

How Does COTI (COTI) Work?

COTI relies on two key technologies to function:

Proof of Trust (PoT)

This consensus mechanism deviates from traditional blockchain mining. Instead, it utilizes a trust score assigned to each user based on past transaction history and behavior. This score determines the fees they pay and their ability to participate in the network. Merchants with high trust scores enjoy lower costs and faster transaction processing.

Directed Acyclic Graph (DAG)

Unlike traditional blockchains that store transactions in linear blocks, COTI employs a DAG structure. Transactions are directly connected, forming a web-like structure. This enables faster transaction processing and higher scalability compared to blockchains.

Process

Here’s a simplified breakdown of how a COTI transaction works:

  1. Buyer initiates a purchase – The buyer sends a payment request to the seller.
  1. Trust score assessed – The network analyzes the buyer’s and seller’s trust scores.
  1. Fees determined – Based on the trust scores, transaction fees are calculated.
  1. Transaction validated – Users with high trust scores validate the transaction.
  1. Payment completed – If validated, the payment is completed and reflected in both parties’ accounts.

Additional Points

COTI plans to transition its protocol from its Directed Acyclic Graph (DAG) network to a scalable, privacy-focused Layer 2 network built on Ethereum. This new iteration is called COTI V2.

COTI V2 is still under development. The initial test network is planned for release in 2024, and the official mainnet launch might occur in early 2025.

COTI (COTI) Token And Tokenomics

Tokenomics

The COTI token is the native cryptocurrency of COTI. It is used for:

  • Paying transaction fees
  • Staking

Token Details

Total Supply 2,000,000,000 COTI

Circulating Supply 1,572,639,906 COTI

Current Price $0.1707

Market Capitalization $268,441,416

This information is current as of April 3rd, 2024, and the token’s price, market value, and available supply may fluctuate.

Distribution

  • Private & Public Token Sales (30%)
  • Incentives (45%)
  • COTI Team (15%)
  • Advisors (10%)

COTI V2 Tokenomics

While details are still under development and final specifications are yet to be announced by the COTI team, the new tokenomics are expected to be:

Focus On Incentivizing Participation

A significant portion of newly minted tokens will be allocated to rewards for developers, node operators, and users to encourage active participation in the network and ensure its growth.

Alignment With Layer-2 Standards

The tokenomics are expected to be designed to be compatible with other Layer 2 protocols and ecosystems, fostering interoperability and broader adoption.

Where Can I Buy COTI (COTI)?

Binance Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.

Coinbase Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.

Kraken – A reputable exchange known for its security and compliance, Kraken offers a lot of trading pairs with various funding methods, including bank transfers and stablecoins.

Is COTI (COTI) A Good Investment?

Pros

  • Comprehensive solution – COTI offers a complete package for businesses and organizations looking to enter the blockchain payment space. This includes issuing their stablecoins, integrating traditional financial practices, and providing user-friendly tools like a native wallet and exchange.
  • Reduced Fees – COTI claims to offer lower transaction fees than traditional payment methods, potentially benefiting both businesses and consumers.
  • Hedging Opportunities – COTI’s features, such as the COTI Pay app and trust chain technology, aim to mitigate the volatility of cryptocurrencies, potentially making them more attractive for everyday use.

Cons

  • Adoption Challenges – Achieving widespread adoption for a new payment platform can be challenging, especially when competing with established payment networks and systems.
  • Dependency on Partnerships – COTI’s success often relies on forming strategic partnerships with businesses, financial institutions, and other stakeholders.
  • Technology Risks – While COTI’s technology aims to provide scalable and efficient payment solutions, there are always risks associated with technological innovation.

Final Thoughts

This comprehensive guide should equip you with the knowledge to make informed decisions about COTI and its role in your investment portfolio. Before making investment decisions, please conduct thorough research, understand the inherent risks involved, and never invest more than you can afford to lose.

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