A block-less payment solution for creating your own payment network. A payment gateway provider for Cardano and the issuers of US dollar pegged stablecoin Djed.
COTI stands for Currency of The Internet and they are a blockchain agnostic, algorithmically designed payment solution with the vision to empower users to freely exchange value on the internet like they currently do with information. Anyone using the COTI Pay network is subject to KYC and AML procedures.
The COTI payment network is underpinned by directed acrylic graph, DAG, technology, which is noted for its high scalability. The platform is deigned around a trust-based algorithm, where trust is used to validate and confirm transactions. The Trustchain protocol is a consensus algorithm based on machine learning which assigns Trust Scores to transactions, based on a variety of factors, and then organizes them into chains. Fees decrease to almost zero for the more trustworthy users and the speed of processing their transactions increases.
Decentralized Arbtritation System
A built-in, decentralized, arbitration system provides buyers and sellers with protection against errors and malpractice. Part of this is that merchants are required to adhere to rolling reserves requirements and the required amount is calculated using a combination of the merchants Trust Score and their turnover. A small “rolling reserves fee” is taken from each transaction a merchant receives and this is held for a number of days. When the term has ended the funds are released to the mechant's account. If any user raises an issue with a payment relating to that merchant then then these funds are used to pay that should the merchant loose the arbitration.
The COTI Dime
The COTI network runs on the stablecoin the COTI Dime, its value is held stable at $0.10 and it can be used with merchants accepting COTI Pay. Whilst this is used as the main transfer of value on the network the COTI Dime has a few other important use cases:
Arbitration: Arbitrators stake the COTI Dime in order to partake in the arbitration process. They also receive their rewards in COTI Dime.
Node Operator: Are required to hold COTI Dime to participate in the network and node operator incentives are paid out in COTI Dime.
Fees: All fees across the network are payable in COTI Dime.
A currency exchange with multiple fiat and crypto pairings provides users with access to liquid markets. This allows users to store, pay, and receive funds in whichever currencies they choose; regardless of the choices of who they may be transacting with.
Applications and Services
For customers COTI offers a wallet where they can store both FIAT and digital currencies. This wallet acts as a bank account and can be attached to a Visa debit card, also provided by COTI, for which users can select the payment currency they want to use on that card.
For merchants COTI provides processing tools to enable them to start accepting payments from customers using the COTI Pay service, where they can choose which currencies they want to accept, and they can also opt to run a full node to make payments quicker for their customers. COTI offers merchants a POS software suite that integrates with COTI Pay and can accept normal credit and debit card transactions.
COTI has partnered with Ardana, to bring stablecoin crypto-to-fiat payments to the Cardano community, as well as consumers and merchants around the world.
COTI has also partnered with occam.fi where they’re looking to merge the launchpad capabilities of OccamRazer with the ADA payment solutions offered by COTI.
Djed is a US dollar pegged stablecoin, that has been algorithmically design and uses smart contracts (that execute entirely on-chain) to ensure price stability. Djed is designed for paying transactions fees on Cardano, and the goal is that this will make transaction costs more predictable. The underlying protocol of Djed operates by keeping a reserve of base coins, and minting and burning both stablecoins and reserve coins. It like an autonomous bank, buying and selling stablecoins for a price in a range that is pegged to a target price. Read the research paper here