The team members present on the discussion with our community were Samuel Falkon (Co-founder), Efrat Bar-Lev (Marketing pro) and Dr.Nir Haloani (CTO). Here are the essential points of the session:
Please, welcome Samuel (S), Efrat (E), Dr. Nir (N) and the questions from our Telegram chat members (Q).
S: 10K TPS has been verified and benchmarked internally using synthetic transactions and load simulations executed within our TestNet environment (these tests can be replicated by any user). We believe that this will result in improved network scalability following our Mainnet release and as more users join the network. In other words, there is a positive correlation between the number of network users and the rate at which transactions are confirmed. So as our solution expands and is adopted, the rate of transactions per second will also increase significantly.
E: COTI follows stringent Know Your Customer (KYC) and anti-money laundering (AML) policies to ensure the network is always safeguarded for all users. COTI is inherently not conducive to money-laundering, as any user of COTI’s wallets, exchange, and processing solutions must undergo strict onboarding procedures.
S: We have a universal approach to payments which we’ll share in this AMA, but what it means is that we can handle any form of payment (Credit card, Crypto, APM, etc) and settle with the merchant anyway he sees fit. It means that we can support pretty much any payment system.
S: COTI’s Universal Payment System (UPS) is the world’s first solution that offers processing and financing under one roof, reconciling the functionality of PayPal and other online payment gateways with that of cryptocurrencies. It enables users to send and receive payments online and offline any way they want — from crypto and stable coins to credit cards and even a merchant’s native coin.
N: COTI infrastructure is designed in a sharding architecture which means that not all nodes in the network needs to be connected in order to achieve consensus. In addition, the DAG structure of the ledger allows us to confirm transactions in parallel. DSP and TrustSCore nodes are more sensitive nodes in the network and are the ones that sign every transaction in the network therefore the stake for running such nodes is higher.
N: Trust: In COTI we have solved the trust challenges by using an innovative base-layer protocol in the form of a directed acyclic graph ledger built from transactions connected through time and harnessing trust-based algorithms. The trust in our network is based on a combination of the network participant‘s historical behavior data and objective data sets. We take this into consideration in our protocol by calculating trust using a unique machine-learning algorithm. Trust in the COTI network is used in the Trustchain algorithm to validate and confirm transactions faster and to define the amount of work and consensus each transaction requires from the network.
S: COTI is an extremely scalable DAG-based technological protocol optimized for payments and stable coins. It consists of a bespoke Proof of Trust (PoT) consensus protocol, internal exchange, price stability features, buyer-seller protection and more. Most of today’s blockchain platforms are optimized for dApps and not for payments. Some of our proprietary presented are: TrustChain Protocol, first DAG based solution to offer MultiDAG, Smart contract deployed on-chain, buyer-seller protection, DSP nodes and many more.
S: We are working with multiple solutions in the Chinese market. The payment industry is very developed there as it is but very centralized as well.
E: To solve these issues, COTI presents a multi-token strategy and interoperability solution that will support: Communication among different DLTs for cross-ledger operations. Adaptable technology that can change to meet new sector-specific requirements and regulations. Abstracting ledger dependent technology to overcome the limits of various architectures, regardless of addresses, ledger implementation and consensus mechanisms. Building apps based on COTI’s ecosystem using other infrastructures, while powering any network with COTI’s unique infrastructure capabilities. The ability to easily support any other infrastructure and integrate it with payment and stable coin apps. Seamlessly integrating a host of COTI services to enrich other infrastructure networks, e.g. arbitration, payment requests and trust scores.
N: COTI has developed a new approach to achieving consensus between transacting parties operating on a DAG-based data structure. The Cluster achieves scalability through its use of parallel source selection and confirmation of transactions, as well as its use of COTI’s Trust Scores. Each transaction in the Cluster receives a Trust Score equal to the sending account’s Trust Score. A transaction’s Initial Trust Score is used to define the unvalidated transactions (sources) which will be validated and referenced by the transaction, as well as the amount of PoW that should be performed prior to transaction attachment. The TrustChain Algorithm makes use of the cumulative Trust Score to achieve consensus on whether a transaction is confirmed or not. A transaction is considered confirmed if it is the starting point of a TrustChain that has a cumulative Trust Score exceeding the pre-set global confirmation threshold.
N: PoW is used in COTI to prevent spamming the network with many transactions. So the purpose is different than it is used for mining.
N: The Double Spend Prevention Nodes (DSP Nodes) are a set of highly trusted distributed servers responsible for DSP consensus, account balance control and general protocol and data integrity. Each transaction has to be approved and signed by the majority of the DSP nodes. Users cannot directly connect to DSP Nodes.
S: COTI is positioned to disrupt the global payments industry and move currencies and payment systems to the digital era. What’s more, our user-friendly platform will make joining simple for novice and advanced users from all over the globe, especially in unbanked regions.
S: Once we make the transaction from private MainNet to public MainNet we will gradually allow node operator to join the system as full node operators and together with that stat to move our current merchants and onboard them on MainNet. This will allow any merchant to use the MainNet using our payment request mechanism and with a similar flow to PayPal/AliPay. In addition, we will add support to popular e-commerce websites such as Shopify and WooCommerce. In the infrastructure we are going to finalize the MultiDAG + Smart Contract solutions and connect it to COTI-X for easy deployment of new tokens and define any token stabilization mechanism if one is required. We are also working on integrating our wallet as part of HW solutions.
S: It’s all about UI and profitability for any merchant. we will also be offering risk management tools, the ability to develop their own loyalty program and much more.
N: Currently, there is only COTI native wallet which is provided by COTI and support in exchanges. The full node can be accessed via API and anyone can build and integrate with our network through it.
E: COTI has developed a unique Trust Score node as part of its Global Trust System (GTS) to monitor user behavior and calculate trust scores as part of its consensus mechanism. This Trust Score node is now offered as a service on other chains as part of COTI’s mission to introduce more trust and adoption to any blockchain system. COTI has initiated the process of integrating its GTS mechanism into Chainlink’s oracle and smart contract framework. This will add support for trust-based events in smart contracts, enabling user incentivization in line with a predetermined trust score threshold. For example, a user will be eligible to receive tokens if his/her Trust Score is above a given threshold for one year or, alternatively, users could receive a bonus for transacting in a trustworthy manner.
N: Not all nodes need to be part of the consensus or connected and the network is built in sharding architecture.
S: I believe there is room for everyone who brings good and viable technology.
S: Number of disputed transactions (where the disputes were lost). The number of transactions attempted/made not adhering to the network’s rules (with no obvious intention to defraud). The number of possible attempts to double-spend/defraud.