COTI, Currency Of The Internet, presents users with a scalable and user-friendly cryptocurrency by using an innovative base-layer protocol in the form of a directed acyclic graph-based ledger, built from transactions connected through time, by harnessing trust-based algorithms. Trust should be based on a combination of the network participant‘s historical behavior data and objective information about them. COTI takes this into consideration, calculating trust using a unique machine-learning algorithm.
Trust is used in the Trustchain Algorithm to validate and confirm transactions faster.
Trust chains grow as new transactions attach to two prior transactions which have similar degrees of trust as themselves. This results in an innovative consensus-based confirmation mechanism, where every user is incentivised to have a high level of trust while engaging in trust-building behavior due to the benefits associated with having a high level of trust.
COTI also introduces a MultiDAG structure and high-performance smart contracts, which provide a multitude of tools for enterprises, merchants, governments, developers and stable coin issuers.
COTI (Currency Of The Internet) is a next-generation cryptocurrency that achieves high transaction throughput and low fees, while being easy to manage and providing decentralised structures for the services users have come to expect from payment platforms, such as dispute resolution.
COTI achieves a high transaction throughput by employing a Directed Acyclic Graph (DAG) of transactions known as the Cluster, as opposed to a blockchain. This idea is not new, and has been proven to improve performance [13, 4, 15]. Typically, DAG based cryptocurrencies 3 have been intended for large numbers of low valued transactions, possibly between machines such as IoT devices.
Because COTI is designed to support day-to-day transactions between merchants and consumers, new algorithms have been introduced to drive the formation of the Cluster, and the approval of transactions.
Fundamental to the new approach is the Trust Score, which is assigned to each user account based on its historical behavior, and which governs the approval of that account’s transactions within the network as well as the amount of any possible fees incurred.
COTI’s unique combination of the Trustchain Algorithm and Proof of Work.
COTI uses Proof of Trust (PoT) consensus mechanism.
COTI introduces a high-performance cryptocurrency built atop the base layer protocol. This cryptocurrency will be used as a common means of payment, including all fees and staking inside the COTI ecosystem.
COTI is not bounded to one instance of DAG. The same infrastructure of nodes permits the creation of multiple DAGs that can be used for various purposes and originators. There can be voucher tokens, stable coins, dedicated tokens for global companies, or scalability tokens to speed up settlements in other blockchains. See more details in “MultiDAG” section below.
Smart contracts: COTI introduces “on-chain” smart contracts for the DAG, a first of its kind.
This article does not constitute investment advice.
Content copyright(C) 2018 – COTI