COTI, also known as the Currency of the Internet, is a layer-1 blockchain ecosystem that was built to become a decentralized and scalable payment network to facilitate global commerce at low fees.
The main goal of the project is to revolutionize traditional finance systems by eliminating intermediaries and empowering organizations to build their payment solutions and digital currencies on top of the Trust chain protocol.
This article will dive deep into COTI to understand its basics, how it functions, the use cases of its native token, and finally determine whether it is a legitimate cryptocurrency project that you can invest in.
What is COTI?
COTI is a layer-1 fintech blockchain ecosystem that is designed to address the challenges of both centralized and decentralized finance platforms.
The project combines distributed ledger technologies with traditional payment solutions to build a highly scalable and efficient global payment network that is driven by trust.
The Currency of the Internet distinguishes itself from other payment solutions, including blockchain-based platforms, by providing a platform that consists of an innovative trust mechanism, a decentralized mediation system, a multi-currency wallet, and a native currency exchange.
The COTI ecosystem is powered by the COTI coin, which is the platform’s native utility and governance token.
How Does COTI Work?
The purpose of the COTI ecosystem is to provide users with a fast and price-stable decentralized payment solution with direct merchant-facing tools.
COTI makes this possible without the use of any centralized financial intermediaries.
Besides that, the Ethereum-based protocol can process 100,000 transactions per second, making it faster than many existing payment systems and blockchain networks.
Certain blockchains with high transaction costs are known to be unstable, but in the case of COTI, its developers have ensured that the ecosystem maintains the same level of stability and asset protection throughout its lifetime.
Apart from that, COTI has a dispute resolution mechanism to protect users against errors and fraud powered by the Trust Chain Algorithm.
Trustchain is a layer-1 protocol with a directed acrylic graph (DAG) data structure that can lower transaction costs while increasing throughput.
Proof of Trust (PoT)
Proof of Trust is a consensus mechanism used by COTI to address its scalability issues that combines Trustchain, a DAG-based data structure, and Proof of Work (PoW).
COTI uses a DAG called the Cluster, which is a distributed ledger for recording transactions on the network.
Instead of collecting transactions in a block, Cluster places transactions in a sequence, one after the other.
For a new transaction to be processed, the validating nodes must link it to two prior transactions, therefore forming the chain.
Validators decide which transaction to link to by checking their Trust Score.
The PoT consensus rates each user and node according to their Trust Scores, which are based on their historical behavior and payment statistics.
The higher the Trust Score, the faster their transactions can be processed and the lower the fees they will pay.
When a user initiates a transaction on COTI, the network’s Source Selection Algorithm randomly selects two nodes that have a similar Trust Score.
As a result, transactions from trusted users will be confirmed much faster. Transactions with different Trust Scores are processed in parallel.
This way COTI can achieve scalability and network security.
What is the COTI Token?
COTI is the native token of the COTI ecosystem. It is a DAG-based cryptocurrency that has a maximum supply of 2 billion tokens. Interestingly, COTI does not require PoW mining to secure the network.
Moreover, the COTI token operates on three different blockchains: Trustchain, Ethereum, and BNB Chain.
COTI holders can use the COTI Bridge to use the token between the different magnets. Apart from paying for transactions and other services within the ecosystem.
COTI can also be deposited into the COTI Treasury for DeFi staking. The Treasury distributes rewards to holders and other network participants.
Price Prediction
At the time of writing, COTI is trading at $0.1033 – up 51% in the last 24 hours. The token has a market capitalization of $156.9 million and has had a 24-hour trading volume of $114.15 million.
COTI recorded its all-time high of $0.6696 in September 2021, while the token was trading at its lowest valuation of $0.00556 in December 2019.
Based on the current price, COTI is forecast to trade between $0.067 on the lower end and $0.236 on the high end in 2025. If the token can reach the upper price target by next year, then it would have gained 133.3% in value.
For 2030, COTI is expected to trade between $0.1131 on the lower end and $0.7311 on the upper end. Compared to today’s price, COTI could gain 618.5% in value if it manages to reach the upper price target by then.
Where to Buy COTI?
COTI tokens can be purchased from the following centralized and decentralized crypto exchanges:
Conclusion
COTI is a layer-1 blockchain payments solution that is designed to support the unique needs of customers and merchants who are overly reliant on traditional financial systems.
The project uses an innovative Proof of Trust consensus mechanism to validate transactions and is considered to be among the fastest blockchains, with a throughput of 100,000 transactions per second.
COTI aims to be a blockchain-agnostic decentralized payment solution for the real world. The network’s native token COTI is available on Ethereum, Trustchain, and Binance Chain.
The project has teamed up with several industry leaders and sees 2024 as a big year for adoption.
COTI is a credible cryptocurrency project and a decentralized global payments platform that does not require any traditional intermediary to process transactions. However, its sustainability depends on how well it can fare in the long term.
As is the case with every cryptocurrency, you should do your research before investing in COTI. Another important point is to only invest money you can afford to lose.
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