Overview :

COTI is a payments transaction network supported by a native digital currency. By combining the best of traditional payments with the best of distributed ledger technology, COTI aims to set the standard for how payments should work in the digital currency era.

At COTI we’ve not only built a digital currency, but an entire digital payment ecosystem. COTI’s DAG-based consensus model, Trust Scoring Engine, Mediation System, currency exchange and decentralised governance are all hallmarks to the functioning of the COTI network.

COTI payments network was designed to take over where traditional payment systems left off, namely with instantaneous transfers, low-to-zero fees and cost effective buyer-seller protections. This is a major advantage for consumers and merchants alike as compared to traditional banking, credit cards and P2P platforms.

What is the need :

The online payment industry is currently encompassing over 1.6 billion people worldwide with annual transaction volume that exceeds 3.265$ Trillion. According to recent researches, the industry is expected to show an annual CAGR of 13.5 % between 2018-2022, resulting in the total amount of $5.411 Trillion in 2022. Along with the growth in the market value, the industry is rapidly changing. New forms of commerce are springing up, and the power balance within the industry is changing. In accordance with the spread of mobile devices like smartphones and tablets, the mobile payments volume is swiftly rising and expected to gradually capture a sizeable market share within the online payment market. The rapid growth and changes of the industry, has raised the demand for faster, easier, more scalable, and more reliable payment systems.

Problem with the current system :

Despite the intense competition within the online payment industry, neither digital currencies nor traditional electronic payments, has yet introduced a comprehensive solution for the online payment industry. While traditional online payment systems (e.g. PayPal and Visa) have the ability to scale high-volume of transactions, with fast execution time, they represent major drawbacks in terms of transactions fees. Mainly in cross-currency and cross-border transactions. On the other hand, Digital currencies could represent an alternative, as they have the potential to facilitate payments with greater security and lower transaction fees. However, in practice, they face scaling challenges, low rates of adoption in the context of online payments, and their price is very volatile. In fact, to date, only less than 0.1% of the online payments are made using digital currencies.

The following table represents the major benefits and drawbacks of traditional payment systems and digital currencies, along with COTI objectives:

What does the network core of this COTI payment system consist of ?

The three main elements of this payment network consist of the trust scoring engine, mediation system, and currency exchange system.
1. Trust scoring engine :
Over a period of time, this engine efficiently analyses network interaction to generate a unique trust score for each COTI network participant. Transaction value, dispute occurrence, disputes won, disputes lost, and user rating are some of the parameters that effectively determine the unique trust score.
2. Mediation system :
This system will effectively protect sellers or buyers in the event of transactional disputes that may arise within the XCT payment network. This system provides backup to the trust engine.

Some of the scenarios where a mediation system is needed :

• Unauthorized charges.
• Undelivered goods/services.
• Non-conforming goods/service.
• Billing errors.
• Inadvertent transfers.

3. Currency exchange :
This system is used for currency exchange and cross-currency payments. It is used to transfer the holdings of the end-user from one currency to another through a direct mechanism.

Token Economy :

Initially, an ERC-20 tokens will be issued for the purposes of providing an official record of tokens sold. Following the launch of the COTI main net, the ERC-20 tokens will be converted into tokens issued on the COTI network’s transaction ledger. The ERC-20 tokens are expected to be listed on at least one major exchange no later than the end of September 2018.

Conclusion :

• Comprehensive Decentralized Payment Solution:

  COTI was developed exclusively to satisfy daily consumer payments use case, and it indeed, provides a thorough solution that addresses properly the market need and solves concurrently the major concerns of consumers and merchants. Aside from the “regular” benefits in terms of scalability, decentralization, security and low fees, COTI also provides an additional trust layer, hedging services (to address the volatility), and an integration with a native wallet and native currency exchange that provides a convenient easy-to-use solution.

• Project potential:

  The project’s targeted market is the online payment industry. A huge and growing market. We believe that the advantages of the future COTI payment network are beneficial enough for it to successfully penetrate as a legitimate payment service provider and therefore, to capture a sizeable market share. COTI addresses a tangible market needs that neither of the current payment systems has addressed, and thus, despite the intense competition, the project potential seems high.
  

  For more information :

• Website : https://coti.io/

• Facebook : https://www.facebook.com/COTInetwork/

• Twitter : https://twitter.com/COTInetwork

• Reddit : https://www.reddit.com/r/cotinetwork/

• LinkedIn : https://www.linkedin.com/company/coti-ltd/

• Youtube : https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA/www.coti.io

• Telegram : https://t.me/COTInetwork

• Whitepaper : https://coti.io/en/files/COTI-technical-whitepaper.pdf?v=13d5eddd2d28

Author: Raghav
Bounty0x User Name : raghav078
Bitcointalk: https://bitcointalk.org/index.php?action=profile;u=2235966