TL;DR
A layer-1 blockchain ecosystem created for payments is called COTI. COTI doesn't use Proof of Work (PoW) or Proof of Stake (PoS) to validate transactions, in contrast to conventional blockchains. It uses the distinct Proof of Trust (PoT) consensus technique, which blends the directed acyclic graph (DAG) data structure with PoW. PoT can boost throughput to up to 100,000 TPS while reducing transaction costs.
The company's native cryptocurrency, COTI, runs on three separate mainnets. Transaction costs are paid using COTI, which can also be staked to win prizes in the Treasury. With the COTI Visa debit card, you may also make purchases using COTI and other cryptocurrencies. Developers, retailers, and businesses will be able to create tokens using the COTI MultiDAG 2.0 that inherit Trustchain features like scalability, high throughput, low cost, and user-friendly payment mechanisms like COTI Pay Business.

Introduction

COTI is a blockchain ecosystem that enables low-cost, quick, and secure transactions. By doing away with middlemen and enabling businesses to create their own payment systems, digital currencies, or stablecoins on top of the Trustchain protocol, it seeks to disrupt traditional finance.

Description of COTI

A layer-1 fintech blockchain ecosystem created particularly for payments is called COTI. By proposing a new kind of DAG-based protocol and infrastructure that is inexpensive, quick, scalable, private, and inclusive, COTI is solving the difficulties of both centralized and decentralized finance (CeFi and DeFi). To reach a consensus, Proof of Trust (PoT), which combines PoW with DAG, is used.

How does COTI operate?

The goal of COTI is to create the next generation of financial and digital goods that take into account many facets of the emerging digital economy. It will function as a wholly comprehensive ecosystem because it was built from the ground up, from Layer 1 to Apps.
The scalability of important blockchains like Ethereum (ETH) has been a problem. Blocks are used to conduct transactions, and new blocks are routinely added to a long chain of blocks. To confirm the transactions, there is a waiting period before the blocks are acknowledged, which may take a while.
The layer-1 blockchain technology Trustchain, which uses a directed acyclic graph (DAG) data structure, is the foundation of the COTI network. It can boost throughput to up to 100,000 transactions per second (TPS) and drastically reduce transaction costs.

Proof of Trust (PoT)

The Proof of Trust consensus technique developed by COTI combines Trustchain, a DAG-based data structure, and Proof of Work (PoW) to address scalability concerns.
The COTI DAG is referred to as "the Cluster," a distributed ledger for logging network transactions. Transactions are placed one after the other in sequence rather than being grouped into blocks. A new transaction needs to be connected to two older transactions for the validating nodes to acknowledge it.
They should link which transactions, though. It depends on how trustworthy they are. Validators in the PoT system are chosen depending on their reliability. Based on their prior behavior and payment information, each user and node in the Cluster are graded according to their Trust Scores. Their transactions can be handled more quickly and with lesser fees the higher the Trust Score.
The Source Selection Algorithm randomly chooses two validating nodes with comparable Trust Scores when a user starts a transaction on COTI. As a result, confirmed transactions from dependable individuals will happen considerably more quickly. Scalability and network security are possible due to the concurrent processing of transactions with various Trust Scores.
The way PoW is implemented in COTI differs from our norm. To gain trust, it doesn't rely on mining. PoW is exclusively employed to safeguard COTI from spam attempts and motivate network users. Validators may be able to link their transactions to the Cluster if PoW tasks are completed, but this is not a given. Their Trust Scores, which are also used to determine the PoW levels that can indirectly affect transaction fee levels, will ultimately determine how much they are paid. Since mining is not necessary, COTI can run with very minimal transaction costs.

The MultiDAG layer

The ecosystem of COTI MultiDAG is comparable to that of Ethereum. On the network, there are a number of autonomous DAGs serving various functions. They all run simultaneously on the same infrastructure, maintaining fully tailored tokens and apps, which increases the effectiveness of the entire network.
Developers, retailers, and businesses will be able to create tokens using the COTI MultiDAG 2.0 that inherit Trustchain features like scalability, high throughput, low cost, and user-friendly payment mechanisms like COTI Pay Business.
The MultiDAG allows users to produce their own fiat-collateralized, crypto-collateralized, or even non-collateralized stablecoins. For instance, COTI is the authorized issuer of the ADA Pay payment system and the Djed stablecoin from Cardano (ADA).

Coin Issuance Service

After MultiDAG 2.0 is made available on the mainnet, COTI will be able to give enterprise clients the option of using the COTI MultiDAG technology to create stablecoins and other digital currencies according to their own specifications. Lower transaction costs, scalable infrastructure, privacy modules, and complete technical assistance from the COTI team are some advantages of this service. Additionally, clients have the freedom to issue as many tokens as necessary at a low cost.

Djed

The first algorithmic stablecoin built on Cardano, Djed is powered by COTI. It is a stablecoin with an algorithmic structure. The coin is beneficial for decentralized finance (DeFi) activities and employs smart contracts to assure price stabilization. Djed is more than just a stablecoin based on the Cardano network. Additionally, it is intended to eventually serve as the sole token used to pay Cardano's network transaction fees.

COTI Pay Business

Merchants will be able to use new COTI Native assets as payment options for retail and commerce transactions using the COTI Pay Business solution. Businesses of all sizes will be able to benefit from COTI technology at a low-cost thanks to COTI's Trustchain and MultiDAG secure and cutting-edge infrastructure.

COTI Treasury: Earn & Deposit

Users can deposit $COTI and earn rewards for taking part in COTI's Treasury, an algorithmic and decentralized pool of $COTI. As fees are paid to the Treasury by the entire ecosystem over time, either directly or indirectly, the pool increases. All of COTI's product fees are collected in one place and given to users as incentives from the Treasury. This year, COTI will also launch a governance token. The Treasury's users and those who consistently contribute to the expansion of the Treasury will receive the governance token. It will give its owners the ability to discuss, suggest, and decide whether to change the protocol.

What does COTI stand for?

The native token of the COTI ecosystem is COTI coin. A total of 2 billion of this DAG-based cryptocurrency are in circulation. PoW mining is not necessary for COTI to protect the network. Trustchain, Ethereum, and BNB Chain are the three mainnets that COTI uses to do business.

• Trustchain: native mainnet of COTI.
• COTI is also available on the Ethereum network as an ERC-20 token. It is utilized in DeFi DApps and traded on a few cryptocurrency exchanges.
• BNB Chain: BEP-2 and BEP-20 variants of COTI.
  Trustchain: the mainnet native to COTI.
  COTI is also available on the Ethereum network as an ERC-20 token. It is utilized in DeFi DApps and traded on a few cryptocurrency exchanges.
  Versions of COTI in BEP-2 and BEP-20 on BNB Chain.
  Owners of COTI tokens can communicate between the various networks (mainnets) by using the COTI Bridge. In addition to being used to pay for ecosystem services, COTI can be put into the COTI Treasury for DeFi staking. The COTI incentives will thereafter be given to users by the Treasury.

Concluding remarks

With its DAG-based Trustchain, COTI fills the demand for a Layer 1 that is appropriate for the particular requirements of consumer-merchant payments in the cryptosphere. The team predicts that in 2022, COTI's network would exponentially expand from a single coin to several tokens, including Djed, corporate tokens, merchant tokens, and more. COTI is also planning to increase its collaborations with businesses and initiatives, and it anticipates adding more use cases to the platform in the near future. The Treasury will receive all COTI ecosystem fees, which will then be paid to users as incentives.