May 28, 2018
In the world of digital currencies there are countless options to choose from, whether you’re looking at newcomers or established currencies. It goes without saying, that not all are created equal, which is why we’re breaking down the differences for you. Today, it’s all about how Nano fares against COTI, so let’s dive in.
Both COTI and Nano utilize DAG-based consensus mechanisms to verify transactions within their respective networks. COTI has developed the TrustchainTM, a unique base protocol which is highly scalable, efficient and centered around trust. The protocol consists of FinTech application layers resting on a blockless distributed ledger, which utilizes a directed acyclic graph (DAG) data structure. At its core are a trust-based consensus mechanism and Mediation System ensuring trust is maintained within the network.
Nano’s DAG is known as the Blocklattice, which is also scalable, while its consensus mechanism is based on a delegated proof-of-stake (dPOS) model. Currently, the Nano network does not offer a trust score based system or buyer-seller protections in case of transaction disputes. Both systems, however, can efficiently handle microtransactions at low-to-zero fees while providing consumers and merchants with a user-friendly interface.
As far as transaction confirmations, in the COTI network, two recent ‘tip’ transactions are selected randomly based on their Trust Score and built upon. The deeper the transactions are from the tips, the more reliable they are. In contrast, only recent blocks in the Nano network are selected for transaction confirmations.
In terms of regulation, COTI adheres to Know Your Customer (KYC) and anti-money laundering (AML) procedures and is pursuing a DLT license from the Gibraltar Financial Services Commission. Nano remains largely unregulated.
To hedge against price volatility, COTI provides merchants with hedging services to reduce, or eliminate, their exposure to currency fluctuations. Nano faces significant price volatility, much like other cryptocurrencies, with no recourse to hedging services.
Our chart below outlines the primary underlying differences between both networks:
We are excited to announce that COTI will be launching a special pre-sale limited to our community. The Pre-sale contributions will start on June 4th 2018 for 2 days and Available for whitelisted members only! For more details get in touch with us on Telegram or via email.
