Tech AMA Recap
The AMA was held on COTI Official Telegram group on March 12th, 2020 at 12 pm UTC and was hosted by Wolf Crypto.
Much has happened at COTI during the last weeks with fruitful and very exciting developments in many different aspects. Here are some of our recent updates:
- Binance has listed COTI on February 26th
- We started to process Credit Card transactions on the COTI network
- We introduced two new merchants case studies: Blockchain Dollars and MyFirstWallet
- We have completed and launched the build of our MultiDAG, being the first-ever DAG structure that allows token issuance on top of our DAG-based Trustchain protocol
- We introduced our new Explorer which brings greater transparency to our network and network operations.
- We have been reviewed by Blockfyre and Nik Patel, both granting their highest ratings ever!
- We have continued to produce great rewards for stakers and this can now be seen on StakingRewards.com, providing real-time, transparent and verifiable staking data to the wider crypto community.
Stay tuned as we are soon releasing COTI’s Staking v2.0 and lots more news.
I guess the most logical place to start is, why MultiDAG?
What’s the reasoning for it and how does it help the overall network/provide additional use cases for clients of the network?
The MultiDAG is the first-ever DAG structure that allows token issuance on top of our DAG based Trustchain protocol. This achievement was made possible by combining independent DAG clusters into the overall COTI network. The COTI MultiDAG ecosystem is similar to Ethereum, in the sense that both are common decentralized infrastructure acting as the basis for a multitude of different tokens and smart contracts while utilising one main coin for all fees and staking within their respective ecosystems.
However, unlike Ethereum, the MultiDAG is a series of permissioned instances that allows the token issuer and owner of the individual MultiDAG instance to set their own rules specific to their needs and/or use case. Token issuers on Ethereum are limited by the overall rules and performance of the Ethereum network as a whole, while on the COTI MultiDAG token issuers retain control of their own rules and instances are not limited by the overall performance of the network, allowing for almost limitless instances and tokens to exist without any network degradation. MultiDAG instances still retain the ability to access all the overall COTI network features such as high scalability, low transaction costs, privacy and dispute resolution and whenever a transaction happens on any of the MultiDAG instances, fees are automatically converted between the issued token to COTI’s native coin, increasing the overall demand for the COTI coin and overall network utility.
The COTI MultiDAG is a competitive advantage that allows the COTI network to focus on our primary target of adoption, enterprise clients. Enterprises by their very nature demand a controlled environment that delivers certainty of network availability combined with sufficient flexibility and scalability.
Why did you go down the path of creating a MultiDAG instead of just allowing additional token issuance on the base layer of the network?
MultiDAG is exactly that, “allowing additional token issuance on the base layer of the network”, just not COTI native token. COTI native token has fixed supply as it is defined in our documents. A user can create its own token upon the same network and give it needed features.
So who can issue tokens on the MultiDAG?
You compare yourself and token issuance to Ethereum, but it’s not an open issuance platform like ETH right?
Any COTI user can create and issue their own token. It is even easier than in Ethereum, because of the well-defined flow of operations. The only limitation is that in COTI any new user has to pass the KYC procedure, but for most users it is more of a benefit than nuisance.
Can you explain to us how clusters work on your MultiDAG and how this impacts scalability on the COTI network?
Transactions with other tokens are processed in exactly the same way as transactions in native COTI, there is no difference and it does not affect scalability.
How does the COTI coin work across these clusters?
Does this increase or decrease network utility for the coin itself?
I ask this because in the doc you state “The fees collected by Full Nodes in the network can be paid in any token”.
This sounds like it diminishes utility for the COTI coin?
Adding a new token gives users more utility, so the utility of the network is increased. It leads to increasing utility of COTI native token because it is used for the network fee and token minting fee (there is no gas in the COTI network, but issuing and minting tokens is not free).
As to network fee — standard COTI full node collects its fee in COTI, but, in decentralized network we can’t stop node operators from setting this fee infinitesimally small or zero, or even from modifying the code. So, there is no way and no reason to forbid collecting fees in other tokens. If a node agrees to take some tokens for fees, this token should be valuable, isn’t it? We will be happy if many of COTI network tokens became valuable.
Can you run us through the various types of tokens that can be issued on the MultiDAG and why each one is needed?
How do these different token types work in with the overall business case of the COTI network and how will they be used by clients of the network?
This would be a longread. In short, there are four types of tokens:
- Regular tokens are transfer-only tokens. Payment requests are not possible with these tokens and no buyer/seller protection is offered. The fee is fixed and payable in COTI native coin.
- Rated tokens have a definite rate, which can be fixed once and forever. Or this rate can be supplied by the Financial Server or someone else without any obligation to buy or sell tokens. The fee is payable in COTI native coin. In addition, payment requests are not possible and no buyer/seller protection is offered.
- Payment tokens are supposed to be market tradeable and liquid. This type of token allows payment requests and buyer/seller protection. COTI buyer/seller protection is flexible, payments in different tokens can offer various models of buyer/seller protection. Details will be revealed in one of our next articles.
- Global Payment tokens are the same as payment tokens, but also are good for network fee payments.
We suppose, the most useful type is Payment tokens, but it is reasonable to have all four.
You state, “MultiDAG transactions can also be “multi-currency”, meaning a transaction bundle can contain base transactions nominated in different tokens”.
What does this actually mean and how will it be used in practice?
All transactions involving non-native tokens are multi currency because network fee is still payable in native COTI. Also, it is possible to create a transaction sending different tokens to different wallets simultaneously. This feature can be useful for currency exchange operations, for example. It is possible to define a protocol of exchanging signed base transactions (parts of the transaction bundle) for the whole transaction to be an atomic swap.
How will MultiDAG be viewed from the client side?
Will users need to “log on” to separate clusters to perform transactions or network operations or will it all be behind the scenes and “seamless”?
How will users of the network see these tokens in their COTI wallet etc?
The next version of COTI wallet will allow it. COTI network uses wallet addresses as multicurrency accounts. The wallet will give user address balances in all tokens sent to the address, and will allow to transfer all tokens the user possesses.
Will MultiDAG tokens be able to be bridged to different protocols, like the COTI coin is now?
ERC20, BEP-2, etc?
The gateways are already available for COTI native coin, it is not a big deal to adopt these apps to process transactions in other tokens.
So from the four new types of tokens that can be issued on the MultiDAG, which ones will be internal to the network and which ones will be able to exist outside of the network?
All tokens can exist upon the network infrastructure only, or, in other words, inside the network but the new tokens can define their own use cases built atop the COTI infrastructure. So in the future versions, some of the tokens will work with different definitions and have different rules and ecosystem which is associated with them.
Are tokens minted on the MultiDAG like other DAG-based tokens in the sense there is a genesis transaction and past that, no more tokens can be minted?
Yes, all the token supply is created at the Genesis address, and the total supply can’t be changed. The token originator can mint as much tokens as she needs, not exceeding the total supply. This is because of fees: the originator pays only for really issued i.e. minted, token amount.
In your multiDAG doc, it mentions a fee for issuance. How much is this and why does it apply?
There is no gas in COTI, but payment operations can’t be totally free. We set a small constant fee for token generation, it is more anti-spam measure, and ad valorem minting fee for rated and payment tokens. For regular tokens the minting fee is also constant.
The assumed fee level is 10–100 COTI for generation and ~0.01% — 0.1% for minting, without ceiling.
Speaking of fees, how does the MultiDAG affect node runners and stakers?
Does more issued tokens equal more rewards?
WIll node owners have to upgrade their nodes to support the MultiDAG?
Yes, keep in mind — More tokens -> more users -> more operations -> more nodes’ income.
It is less important for stakers because of the guaranteed return, but the upgrade is mandatory, because not-upgraded nodes will be useless for the users and for the network, so there is no reason to pay this node operator any reward.
You mentioned in one of your previous MultiDAG articles that users would be able to “transact with tokens using API commands”.
What can you actually do with this and why would a user require it as part of an actual use case?
COTI wallet interacts with nodes using API calls. It is possible to operate tokens and transactions with API calls and not use wallet app at all, because we use well-proven open cryptography standards, but the wallet app is designed to do this in a simple and convenient way. It may be reasonable for users needed something not-standard, customized merchant backend or gateway, for example.
Before we sign off for the day, what’s on the horizon for COTI? Anything we should be excited about?
Below are some of the developments expected for 2020:
- We have been building our Staking 2.0 model for some time and we are now almost ready to launch it. You’ll be able to stake more, through our wallet but also from exchanges. In addition, more MainNet nodes will join our network.
- Future releases of the COTI Payment Gateway will also include support for Credit Cards, ETH, USDT, USDC and other popular cryptocurrencies
- The COTI Pay app for consumers will be released
- Features for COTI Pay Business will be added
- We will be launching the GTS (Global Trust System) which will allow analyzing BTC wallet addresses and classify them into risky and non-risky categories
- Exciting new partnerships and liquidity venues are to be expected
Nice, on a rough day like this, it's nice to see some hope on the horizon!
Will Staking 2.0 model be released next week?
It will be introduced in the upcoming weeks
When can we expect the new tech roadmap? Since the first one is outdated.
Yes, we will update our roadmap and publish it soon
Is there anything in the works with regards to hardware wallets and the mainnet native coti token? Any plans?
Currently, hardware support is not on our short term milestones.
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
Technical whitepaper: https://coti.io/files/COTI-technical-whitepaper.pdf