COTI’s activity and network processing volume continues to grow!
As the world is slowly adjusting to the “new normal” of COVID-19 and consumer spending patterns are moving more towards online services, COTI’s merchants, who primarily transact online, have significantly grown their processing volume over the past month.
This increased online processing for merchants, coupled with our recently launched credit card processing, has resulted in a record month for COTI’s network activity, with over $7M in processing volume, representing 40% growth from the previous month!
Such growth can be reflected in our Explorer under “Merchant’s activities” and has a direct impact on the demand for the COTI coin, as explained here.
This continual increase in merchant processing volume on the COTI network, despite the COVID-19 pandemic, is very encouraging and as such, we expect to meet our goal to process $120M on the COTI network this year!
The growth for the demand of COTI’s network and services, coupled with the new Staking 2.0 model limiting the supply of coins, serves as a great benefit for coin holders.
How to read Merchant’s Transactions tab on COTI’s Explorer:
The Merchant tab on the Trustchain Explorer shows two types of deals we have with merchants: A deal where we show the entire transaction on the Trustchain (“Revenue Transaction”) and a deal where we only show the fees the merchant paid to the network for the transaction (“Fee Transaction). In some cases, the merchant will have both deals.
If Merchant A is processing 2,000$ with COTI and it’s a Revenue Transaction (COTI mirrors the entire transaction) then you’ll see 2,000$ worth of COTI on the Trustchain. So, Merchant A processing volume is 2,000$.
If Merchant B is processing 1,000$ with COTI, through a credit card transaction for example, and Merchant B is paying 1% fee, then you’ll see only 10$ worth of COTI on the Trustchain. So, Merchant B processing volume is 1,000$.
Processing volume of 3,000$
The Trustchain shows 2,010$
By definition, our processing volume will always be greater than what you see on the Explorer.
Revenue Transactions are good for Node operators and stakers’ rewards, as they cut a fee from the entire volume. Fee-based transactions are good for the demand for COTI, as merchants need to pay their fees with the COTI coin. A healthy network needs both.
You can read more about it here.
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Technical whitepaper: https://coti.io/files/COTI-technical-whitepaper.pdf