COTI — The Enterprise Layer 1 — Some Thoughts About the Future
Written by Shahaf Bar-Geffen
Today marks the third anniversary of COTI’s Trustchain Mainnet’s launch as well as the COTI coin launch, which took place on June 4, 2019. During those three years, we have accomplished a lot. We’ve successfully launched advanced products such as COTI Pay and the COTI Treasury, we are issuing Cardano’s overcollateralized stablecoin Djed, we have created liquidity by listing the COTI token on all of the top exchanges, we grew a community of over 300,000 members, and so much more. For those of you who read this, you can be proud to have taken part in this journey. We cherish your support and plan on continuing to be worthy of it.
Before I dive into the way I see COTI in the future, I’d like to start by explaining what’s happening right now in crypto, when it comes to enterprise blockchain
We are seeing more and more enterprises and central banks looking into digital currencies, specifically issuing their own tokens and forming their own private payment network. Enterprises have a lot to gain by creating a payment network with their users as it slashes their costs, speeds up their operation and creates unprecedented loyalty. It has become clear that there is a growing demand for these new types of private tokens. However, the current Layer-1s out there do not yet meet all the enterprises’ needs.
There are 3 main reasons why Enterprise blockchain, the adoption of blockchain by major enterprises, have so far generally failed:
- Technology — current Layer 1 solutions are too slow, expensive and have a lot of adoption friction both for the user and for the enterprise (like the requirement from someone new to crypto to download a wallet, store keys, acquire gas tokens etc). COTI’s trustchain, on the other hand, is a perfect fit.
- Regulation — enterprises cannot and will not take any regulatory risks when it comes to using 3rd party technologies. The fact that Layer 1 out there hasn’t completed KYC/AML checks to their user base is a huge problem. There’s only one Layer 1 that did that: COTI.
- Enterprise grade products — enterprises don’t just look for technologies, they are looking for turnkey solutions. The current state of things in crypto is that different providers build different pieces of the solution, but the chain itself is a foundation that doesn’t take part in solving the enterprises’ specific needs. This is not how enterprise solutions work and COTI can fix that.
COTI has accomplished two major milestones which makes us prime to actually meet the enterprises’ needs right now, coincidentally right on our 3 years anniversary. First, the COTI Treasury has accumulated hundreds of millions of $COTI, which has created new types of liquidity opportunities. Second, MultiDAG 2.0, which will allow the issuance of multiple tokens on top of our chain, is about to be released!
With the ability to launch multiple tokens on top of the Trustchain, using all of the DAG capabilities, COTI can serve enterprises who wish to launch their private payment network like no other Layer 1 in existence. Here’s why:
COTI has Unique Technology that Enterprises Need
COTI is based on a DAG, which allows scalability while remaining secure. It also offers instant settlement and a privacy layer. The MultiDAG2.0 is a critical technology as it allows other tokens to be built on top of our Trustchain and enjoy our protocol advantages. In addition, COTI’s Proof of Trust Consensus mechanism is eco-friendly, unlike PoW, which becomes more and more important to enterprises and users.
Moreover, COTI developed a very uniuqe feature for enterprises and their users: The Payment Request. This functionality allows the enterprise to cover the gas costs of a transaction, which means that users looking to transact with a merchant or an enterprise don’t need to hold COTI in order to pay the gas fees of the transaction. It is so much easier for users who are not yet into crypto to adopt it when they don’t need to figure out what gas tokens means and how to acquire it. COTI’s experience is similar to Paypal’s, as there’s no need for education nor for complicated processes that hinders adoption. COTI is the only Layer 1 that makes it possible for enterprises to pay those fees on behalf of the users. This means adoption.
COTI is Regulation Ready
Regulations are coming. COTI’s approach is very prudent when it comes to regulation as we have been anticipating those regulations and is also the reason why we have been doing KYC and AMLs checks to all of our users since inception. In order to work with enterprises and major clients of the world, one must abide by regulations. Not being regulated is a risk enterprises are not willing to take.
Djed is a clear proof of COTI’s prudent approach, which has earned us the trust of Cardano as the official issuer of its coin.
Our Treasury, which has hundreds of millions of $COTI in it right now, is another opportunity as it is a clean liquidity layer. Every single $COTI that has been deposited has gone through the KYC and AML processes.
COTI is regulation-ready, which is a base requirement to be able to work with enterprises.
Enterprise Grade Product
In order to understand why COTI provides an enterprise grade product, we need to talk about
how other Layer 1s work. Etherium, for example, is a foundation that developed a protocol. As an enterprise, if you are looking for a solution, you need a company with developers and integrators to develop it for you. The enterprise will need integrators and different providers to work in sync to be able to produce what it needs, and then hope that changes in the public chain itself don’t break the solution that they came up with. At the end of the day, enterprises must have a deep understanding of- and predictability about the products they launch. COTI is an all-in-one company — protocol and commercial development are both under the same roof.
The enterprise will be able to work with a single point of contact. This is critical.
Moreover, COTI offers a turn-key solution to enterprises which can be also white labeled: wallets, fiat on and off ramps, processing gateways, Debit cards and bank accounts.
To summarize, I believe that other Layer 1s can be great for a lot of other things, but have failed in helping enterprises to enter the web3 era, and the following is why:
- They are too expensive and slow
- Difficult to develop by Enterprises
- Friction of adoption to users
- The are not regulation ready
COTI, on the other hand, is ready for enterprises, and the following is why:
- Our unique technology — DAG based: fast and cost effective
- Turnkey solution to enterprises
- Super simple for users
- Regulation ready
What’s coming? What to expect?
We have been talking to a lot of enterprises lately and our assumptions about their needs align. We are brainstorming with multiple partners on how to best use COTI to meet their needs. Although it is a long process, you can expect some announcements about enterprises using our infrastructure.
We are hard at work to deliver the goals we set on our 2022 roadmap. That includes MultiDAG2.0, Bridge 2.0, Explore 2.0, Treasury upgrades, Djed and more.
I personally want to thank you for staying COTI and supporting us under all market conditions. Tourists leave when the sky is cloudy, locals stay as they understand the seasons. We are here to STAY, now more than ever.
For all of our updates and to join the conversation, be sure to check out our channels:
Technical whitepaper: https://coti.io/files/COTI-technical-whitepaper.pdf