COTI Token: What is COTI? What You Need to Know About It?
Blockchain offers innumerable ways to enhance the capabilities of the traditional finance ecosystem. By taking this opportunity, the COTI project has come up with solutions to the issues we face in making payments such as high transaction costs and delays in processing.
The COTI blockchain enables faster and secure payments while prioritizing privacy of transactions. Its native COTI token, compatible with ERC-20 and BEP-20 token standards, allows users to make transactions by connecting multiple networks. Let us learn more about the COTI network and its native COTI token in detail.
What is COTI?
COTI was first launched in 2017 with an aim to revolutionize traditional payment infrastructure. From reducing transaction costs and increasing the transaction processing times to eliminating intermediaries, COTI empowers payment transfer systems in multiple ways. The abbreviation of COTI, Currency of The Internet, exactly describes its functionality of enabling faster, secure, cost-effective, and private digital payment transfers.
The COTI network was initially launched on Trustchain protocol in 2018 since Ethereum was not as scalable as it required to be. Today, it exists as a layer2 network on top of the Ethereum blockchain. And, it emerged to be one of the top layer2 crypto projects in the industry, with its unique capabilities in processing payments.
COTI project is one of the first enterprise-grade fintech platforms and is designed keeping different types of audience in mind. From developers, merchants, governments, to individual users, COTI platform helps all kinds of users in processing decentralized payments.
How Does COTI Work?
All of the features and services of the COTI project are made possible with its unique DAG (Directed Acyclic Graph) based protocol. Adding to that, COTI works based on Proof-of-Trust (PoT) consensus mechanism, unlike traditional blockchains that rely on Proof-of-Work (PoW) or Proof-of-Stake (PoS) mechanisms. Proof-of-Trust is basically a combination of PoW consensus and DAG protocol.
In the PoT consensus of the COTI network, the validators that verify transactions are selected based on their trustworthiness. The trust score of a validator is calculated based on their history and payment statistics. When the trust score of a validator is high, their transactions will be processed faster at lower fees.
When a new transaction takes place on the COTI network, its Source Selection algorithm assigns it to two validators with the same trust scores. While the validators with high trust score process transactions fast, others will process at a less faster rate comparatively. Since different levels of validators will process transactions in parallel, the COTI network achieves scalability without any hassle.
What Makes COTI Network Different From Other Projects?
There are multiple factors that make COTI different from the rest of the layer2 projects built on Ethereum. The COTI network can process any type of payment, whether it is an online payment or an offline payment. It covers all modes of payment, ranging from cryptocurrencies, stablecoins, credit card payments, to native cryptocurrencies of a blockchain network.
Addressing scalability issues has become a need of the hour in the blockchain industry. To enable scalable and secure transactions, the COTI project works based on the Proof-of-Trust mechanism, as we mentioned earlier. The multiDAG layer of COTI combined with its PoT technologies makes the project unique from the other blockchain projects. It not only enables faster and secure payments while taking care of privacy, but also offers a global-inclusive platform to improve the accessibility of digital payments.
Additionally, the core components of the COTI network that enhance privacy, Garbled Circuits, are launched in 2024. These are a type of advanced cryptographic technology and play an undeniable role in protecting the sensitive information while processing transactions. In addition to the current functionalities and use cases of the COTI network, it has future plans to make COTI’s infrastructure more efficient, scalable, and faster than the current ZK rollup scaling solutions on Ethereum.
COTI Token and Its Functionalities
The COTI token is the native token of the COTI network that enables all the functionalities of the project. Even though the token was launched way before when the project was launched around 7 years back, it didn’t witness any significant recognition of price spike until the 2021 crypto bull run.
The token is a multichain compatible token that allows users to bridge assets among different networks. It is compatible with two most popular token standards in the industry, ERC-20 and BEP-20 and enables users to interoperate funds between networks. All of this is made possible without compromising the privacy and security of transactional information.
The maximum supply of COTI tokens is 2 billion and by eliminating the energy-consuming mining processes, the COTI network also contributes to the sustainability of the environment. With the recent introduction of Garbled Circuits to enhance the privacy of transaction processing on the COTI network, the project is gaining momentum in 2024. As a result, the COTI token price doubled in February 2024. You can buy COTI tokens on popular crypto exchange platforms such as Binance, Coinbase, KuCoin, Kraken, etc to profit when its price increases in the future.
Conclusion
The COTI network is a unique project that works based on the PoT and multiDAG based protocols. Apart from its existing features in transaction processing, it recently introduced Garbled Circuit technology to enhance privacy and security. The project is coming up with more future plans in 2024 to enhance its capabilities, aiming to become one of the robust digital payment infrastructure in the industry.
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