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What is Coti: A Complete Overview

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What is COTI?

COTI is the world’s first blockchain protocol optimized for decentralized payments, designed for use by merchants, governments, decentralized payment networks and stable coin issuers.

A protocol is a set of rules or procedures that govern the transfer of data between two or more electronic devices. A blockchain is a network of multiple devices (nodes) all holding equal importance that is linked together through the internet. Blockchains are storage ledgers that are duplicated and distributed to all computer devices on the network, all transactions within the blockchain are tracked and then recorded on all systems of the blockchain.

Traditional payment providers we use such as Mastercard and Visa charge users, both as consumers and merchants, extortionately high fees for a relatively simple and straightforward service. The standard of services provided by these centralized companies is not in line with these fees, with slow transaction speed, slow settlements and over-complicated multi-currency support.

COTI aims to combat these issues by providing users with a decentralized payment processing platform that offers instant payment solutions, almost 0 fees with a safe-gaurded network ensuring users’ buyer-seller protection.



The Trustchain Protocol

Unlike traditional methods of payment, the need for financial intermediaries is removed when using COTI Pay. In order for the network to operate as a successful decentralised platform it is vital that an element of trust is established among the COTI community. 


COTI’s decentralized trust system assigns each buyer and seller on the platform with a trust score, visible to all others on the platform. Honest and trustworthy behaviour will increase your trust rating while dishonesty and untrustworthy behavior result in a penalty of a reduction in the user's trust score. These scores are the key mechanism by which new, unconfirmed transactions select prior transactions to validate in order to reach transaction confirmation consensus.


The Trustchain is based on a fully decentralized DAG data structure with no coordinator, centralized council, or other central governance. The collective Trustchain network consists of Full Nodes, Double Spend Prevention (DSP) Nodes, Trust Score Nodes, and History Nodes. This allows for infinite scale while still incentivizing node operators.


In a unique approach that is an uncommon practice among high-performance crypto profits, COTI executes all of their decentralized smart contracts on-chain. They are verified by multiple Full Nodes, before being confirmed and recorded in the COTI MultiDAG. Most other high-performance cryptocurrency projects go elsewhere to have their smart contracts executed by specialized nodes or servers.




COTI-X acts as a currency exchange on the platform, allowing users to avail of market liquidity in a variety of fiat and digital currency pairs.



Main Functions of COTI-X


1- Allows users to pay in whatever currency they want when completing a transaction, regardless of what currency the receiver accepts as COTI-X enables cross-currency payments.


2- Allows users to exchange their current holdings for their desired fiat or cryptocurrency.




3- Provides users with liquidity to buy or sell native COTI tokens against all other currencies they are holding.


Use Cases




P2P Transactions

It will be possible for users with a COTI Pay wallet to make instant peer-to-peer transactions and be charged virtually no fees for doing so.


Secure Storage of Digital & Fiat Currencies 

Users with a COTI Pay wallet will be able to store all of their funds there in the same manner as a bank account but while also supporting cryptocurrenies.


Currency Exchange

Users will be able to directly exchange their fiat and cryptocurrencies directly within their COTI PAY wallets


Debit Cards


All users with COTI Pay wallets will be able to avail of a COTI Debit Card. Once linked to your COTI Pay wallet this will allow you to pay with supported funds directly from your wallet at merchants yet to integrate COTI Pay.




Processing Tools

COTI processing tools will enable merchants that have integrated COTI Pay to accept payments directly from user wallets. The integration process will be straight forward for merchants as Pay’s processing solutions will be compatible with numerous widely adopted e-commerce platforms such as Shopify. As COTI Pay’s network grows, additional features will be introduced for merchants, including supplier and employee payments. As more features are added merchants can continue to move more of their operations onto the platform.


White Label Creation

A fully customizable network supporting COTI and other tokens will be made available to developers to create white-labelled versions for their specific use cases. Merchants will have the option to build their own payment network on a COTI base.


Point of Sale (POS) Support

COTI offers a full POS software pack that links to COTI Pay. By making use of the COTI POS support, merchants will benefit from all COTI Pay advantages, while also being able to accept normal credit and debit card transactions.


Closing Remarks

The main issue for payment processing platforms in the crypto space is adoption and users. COTI is already showing signs of adoption having recorded a record number of $16.8 Million in monthly transaction volume for the month of February 2021. COTI’s processing speed and low transaction fees, coipled with their innovative technologies such as COTI-X and their trust chain is already proving to be a hit with users and expected to only grow from here.