Q&A’s with Tal Dadia - COTI’s Research Engineer
We are continuously looking for ways to improve the Fintech industry through research and development. But what really materializes the magic? Only the algorithms can help!
Some background about Tal :
Tal is a blockchain research engineer at The COTI Group and was a former Blockchain Academic Researcher at the IDC University in Herzliya. He gained vast experience in the realms of matching algorithms.
1. What is a Trust Chain?
Each transaction needs to be attached to two previous transactions in our directed acyclic graph (DAG) ledger, which we’ve named the Cluster. However, they are not attached randomly, but are added in accordance to their respective Trust Scores (related to the sender who sent the transaction). This means that a transaction with a Trust Score of 60 will most likely attach to a transaction with a Trust Score within a similar range. This is how we create a chain of transactions with similar Trust Scores, or a Trust Chain. A transaction can be confirmed once the accumulated Trust Score of each transaction reaches the predetermined threshold.
2. Is it a delegated proof-of-stake (PoS) system?
Not explicitly, as we achieve consensus for every transaction by attaching it to an appropriate Trust Chain. A transaction is confirmed when it reaches the cumulative Trust Score. However, we do examine a delegated proof of stake mechanism on our DSP nodes, which are responsible for detecting and preventing double spending.
3. How many COTI tokens are needed to run DSP nodes?
COTI tokens are not required to run a DSP Node, however this can change.
4. When will the DSP Nodes be implemented?
We are planning to implement the DSP Node by the end of this year.
5. How is the trustworthiness of COTI mediators assessed?
The trustworthiness of COTI mediators is primarily assessed by a prior know your customer (KYC) check.
6. Is there any critical mass of consumers that COTI will be geared towards?
Our simulations present no critical threshold, but we aim to cater to millions of users on a daily basis.
7. How is a user’s initial Trust Score determined?
An initial Trust Score will be determined after submitting a general questionnaire and relevant KYC documents.
8. Will the COTI network support enhanced due diligence (EDD) verifications in the future?
Mediators are responsible for their own responses. In case of any errors that may deter the resolution of a dispute, COTI will revert to Reserve Credit funds.
9. What do mediators have to lose in case they choose to be dishonest or are bribed by other network participants? How are these mediators different than a trusted third party?
Mediators are required for dispute resolution purposes between buyers and sellers. Therefore, they do not approve transactions but rather solve them. If they choose to act maliciously, it will be to their disadvantage because they can lose their tokens.
10. One of your advantages is low-to-zero fees. What happens in the case of micro-payments?
We consider the number of tokens being transferred, as well as the Trust Score of the sender.
11. How will you present COTI as a secure network when all the security of the validation process relies on external servers?
Validation is decentralised and is a function of the Full Nodes. Know your customer (KYC) is an additional service allowing the network to be law compliant.
12. How many tokens are needed for the master node?
This information will be published in the future. Master nodes are known as Full Nodes in the COTI network, and they are responsible for transaction validation.
At COTI, we are using both proof of work (PoW) and proof of stake (PoS). PoW is implemented to prevent potential transaction spamming. Our protocol, however, is not the same as Bitcoin’s, as such there will be no energy intensive requirements.
13. How will you handle bank-to-bank transfers?
At the start, our primary focus will be on merchants and buyers. In the future, however, we will branch out to other types of users, which will be streamlined due to our regulatory status.
14. How can you be trusted to safeguard all KYC information?
We are exploring several options for decentralising the KYC process.
15. Is mediator identity anonymous to transacting users?
Yes. Mediator identity is unknown to users.
16. When will the testnet be launched, and will developers be able to provide contributions?
Testnet will be launched by the end of this year. More updates will be released soon.
The COTI community is continuing to grow at a rapid rate. If you have any questions, you are welcome to get in touch with us on Telegram or via email. We will be providing further updates in the near future.