The team members present on the discussion with our community were Samuel Falkon (Co-founder), Efrat Bar-Lev (Marketing pro) and Dr.Nir Haloani (CTO). Here are the essential points of the session:
Please, welcome Samuel (S), Efrat (E), Dr. Nir (N) and the questions from our Telegram chat members (Q).
Q: How will COTI provide fabulous TPS after getting adoption? Will COTI serve 100000 TPS anytime?
S: 10K TPS has been verified and benchmarked internally using synthetic transactions and load simulations executed within our TestNet environment (these tests can be replicated by any user). We believe that this will result in improved network scalability following our Mainnet release and as more users join the network. In other words, there is a positive correlation between the number of network users and the rate at which transactions are confirmed. So as our solution expands and is adopted, the rate of transactions per second will also increase significantly.
Q: Why does creating a COTI MainNet wallet on a website require KYC?
E: COTI follows stringent Know Your Customer (KYC) and anti-money laundering (AML) policies to ensure the network is always safeguarded for all users. COTI is inherently not conducive to money-laundering, as any user of COTI’s wallets, exchange, and processing solutions must undergo strict onboarding procedures.
Q: How do you plan to integrate COTI with current payment systems and banks around the world while each country has its own set of financial systems?
S: We have a universal approach to payments which we’ll share in this AMA, but what it means is that we can handle any form of payment (Credit card, Crypto, APM, etc) and settle with the merchant anyway he sees fit. It means that we can support pretty much any payment system.
Q: What are the features of COTI Pay?
S: COTI’s Universal Payment System (UPS) is the world’s first solution that offers processing and financing under one roof, reconciling the functionality of PayPal and other online payment gateways with that of cryptocurrencies. It enables users to send and receive payments online and offline any way they want — from crypto and stable coins to credit cards and even a merchant’s native coin.
Q: Server throughput is limited, can COTI fix it in the future? Why do DSP Nodes and Trust Score Nodes require higher staking than full nodes?
N: COTI infrastructure is designed in a sharding architecture which means that not all nodes in the network needs to be connected in order to achieve consensus. In addition, the DAG structure of the ledger allows us to confirm transactions in parallel. DSP and TrustSCore nodes are more sensitive nodes in the network and are the ones that sign every transaction in the network therefore the stake for running such nodes is higher.
Q: Security, scalability, and data privacy are three aspects that are very important at the enterprise level, how can COTI handle these issues? Recently we have seen a proposal for a money transmitter license for all node operators or lighting network facilitators. How will possible regulations affect you in 2020? Can you share with us some summary what COTI team will do in 2020?
N: Trust: In COTI we have solved the trust challenges by using an innovative base-layer protocol in the form of a directed acyclic graph ledger built from transactions connected through time and harnessing trust-based algorithms. The trust in our network is based on a combination of the network participant‘s historical behavior data and objective data sets. We take this into consideration in our protocol by calculating trust using a unique machine-learning algorithm. Trust in the COTI network is used in the Trustchain algorithm to validate and confirm transactions faster and to define the amount of work and consensus each transaction requires from the network.
Q: Currently, on COTI Platform, which types of Dapps are able to run on COTI Network ?
S: COTI is an extremely scalable DAG-based technological protocol optimized for payments and stable coins. It consists of a bespoke Proof of Trust (PoT) consensus protocol, internal exchange, price stability features, buyer-seller protection and more. Most of today’s blockchain platforms are optimized for dApps and not for payments. Some of our proprietary presented are: TrustChain Protocol, first DAG based solution to offer MultiDAG, Smart contract deployed on-chain, buyer-seller protection, DSP nodes and many more.
Q: What about Chinese regulations, does that affect the way companies have to buy tickets to use the platform? If a company is based in a regulated country, can they still use the platform?
S: We are working with multiple solutions in the Chinese market. The payment industry is very developed there as it is but very centralized as well.
Q: How are you working towards making payment systems interoperable?
E: To solve these issues, COTI presents a multi-token strategy and interoperability solution that will support: Communication among different DLTs for cross-ledger operations. Adaptable technology that can change to meet new sector-specific requirements and regulations. Abstracting ledger dependent technology to overcome the limits of various architectures, regardless of addresses, ledger implementation and consensus mechanisms. Building apps based on COTI’s ecosystem using other infrastructures, while powering any network with COTI’s unique infrastructure capabilities. The ability to easily support any other infrastructure and integrate it with payment and stable coin apps. Seamlessly integrating a host of COTI services to enrich other infrastructure networks, e.g. arbitration, payment requests and trust scores.
Q: How does PoT work and how does COTI use this? And why is PoT better than other consensus?
N: COTI has developed a new approach to achieving consensus between transacting parties operating on a DAG-based data structure. The Cluster achieves scalability through its use of parallel source selection and confirmation of transactions, as well as its use of COTI’s Trust Scores. Each transaction in the Cluster receives a Trust Score equal to the sending account’s Trust Score. A transaction’s Initial Trust Score is used to define the unvalidated transactions (sources) which will be validated and referenced by the transaction, as well as the amount of PoW that should be performed prior to transaction attachment. The TrustChain Algorithm makes use of the cumulative Trust Score to achieve consensus on whether a transaction is confirmed or not. A transaction is considered confirmed if it is the starting point of a TrustChain that has a cumulative Trust Score exceeding the pre-set global confirmation threshold.
Q: Why PoW implementation in COTI when COTI already has PoT and COTI is not mining coin?
N: PoW is used in COTI to prevent spamming the network with many transactions. So the purpose is different than it is used for mining.
Q: What are the benefits to node operators? Can you explain what is DSP node and how it is secure?
N: The Double Spend Prevention Nodes (DSP Nodes) are a set of highly trusted distributed servers responsible for DSP consensus, account balance control and general protocol and data integrity. Each transaction has to be approved and signed by the majority of the DSP nodes. Users cannot directly connect to DSP Nodes.
Q: Why is COTI payment better than PayPal or another centralized payment method?
S: COTI is positioned to disrupt the global payments industry and move currencies and payment systems to the digital era. What’s more, our user-friendly platform will make joining simple for novice and advanced users from all over the globe, especially in unbanked regions.
Q: What is your view on the future of currency without a smart contract?
S: Once we make the transaction from private MainNet to public MainNet we will gradually allow node operator to join the system as full node operators and together with that stat to move our current merchants and onboard them on MainNet. This will allow any merchant to use the MainNet using our payment request mechanism and with a similar flow to PayPal/AliPay. In addition, we will add support to popular e-commerce websites such as Shopify and WooCommerce. In the infrastructure we are going to finalize the MultiDAG + Smart Contract solutions and connect it to COTI-X for easy deployment of new tokens and define any token stabilization mechanism if one is required. We are also working on integrating our wallet as part of HW solutions.
Q: What is the user base of your product like COTI Pay, Payment Network etc? Do you have real users who use your products and services regularly?
S: It’s all about UI and profitability for any merchant. we will also be offering risk management tools, the ability to develop their own loyalty program and much more.
Q: How many wallets can support COTI until now? COTI has planned to go to Binance or Huobi?
N: Currently, there is only COTI native wallet which is provided by COTI and support in exchanges. The full node can be accessed via API and anyone can build and integrate with our network through it.
Q: I see that you work with Chainlink, What does this partnership bring to COTI?
E: COTI has developed a unique Trust Score node as part of its Global Trust System (GTS) to monitor user behavior and calculate trust scores as part of its consensus mechanism. This Trust Score node is now offered as a service on other chains as part of COTI’s mission to introduce more trust and adoption to any blockchain system. COTI has initiated the process of integrating its GTS mechanism into Chainlink’s oracle and smart contract framework. This will add support for trust-based events in smart contracts, enabling user incentivization in line with a predetermined trust score threshold. For example, a user will be eligible to receive tokens if his/her Trust Score is above a given threshold for one year or, alternatively, users could receive a bonus for transacting in a trustworthy manner.
Q: How did COTI achieve faster TPS ability over other DAG projects like Nano?
N: Not all nodes need to be part of the consensus or connected and the network is built in sharding architecture.
Q: What projects in the space do you consider as competitors and what differentiates COTI from them?
S: I believe there is room for everyone who brings good and viable technology.
Q: In reference to the Trustchain, what behavioral indicators are collected for data on COTI’s Trustchain?
S: Number of disputed transactions (where the disputes were lost). The number of transactions attempted/made not adhering to the network’s rules (with no obvious intention to defraud). The number of possible attempts to double-spend/defraud.
We were glad to host COTI on our Telegram. Thanks to the team and all the members of the session!