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Introducing Coti — the Currency of the Internet

First-generation blockchains like Bitcoin have come a long way since their inception. However, with a growing user base looking to transfer their assets or use them in real life, their pitfalls are increasingly clear: the lack of scalability. This means that paying for something in-store with Bitcoin might require waiting for some time until the transaction is confirmed. Not feasible for merchants, who try to make the purchase experience as smooth as possible.

Other blockchains have deployed consensus algorithms such as Proof-of-Stake, delegated Proof-of-Stake, or yet others to enable faster verification of transactions, which often comes with sacrificing a degree of decentralization.

Coti has done neither. Instead of deploying a blockchain, the “currency of the Internet” (coti) relies on a DAG for its network architecture.

DAG stands for Directed Acyclic Graph and describes a different kind of data structure. Instead of bundling transactions into blocks and verifying them, in a DAG pieces are connected in an acyclic way — with transactions verifying the transactions that happened before them. Benefits of the DAG infrastructure include speed as anyone can broadcast transactions and there is no limit on how many transaction any one user can submit. Additionally, it’s very energy efficient as no mining is required and cheap. Usually there is only a small network fee. That’s what has made DAG a very popular choice among projects looking to marry Blockchain and IOT.

Instead of relying on one DAG Cluster, Coti boasts a multi-DAG architecture that allows running different tokens and smart contracts on their own dedicated Clusters. For example, stablecoin issuers could use one DAG to issue, mint, and burn stablecoins on the Coti infrastructure and use the network token for transaction fee payments.

In a sense, Coti aims to be a platform similar to Ethereum that offers other token projects a way to launch their token with different features and smart contracts.

Coti Trustchain

To establish trust in the network, Coti has established a Trustchain. The trust chain is the base protocol of Coti. It offers a solution to address existing problems in traditional finance, such as high intermediary fees and long waiting times for remittances. Several participants ensure that the DAG runs smooth:

  • Full nodes are the gateway to the network. They source new transactions to attach and perform a little PoW when adding new transactions to a cluster. PoW in Coti is noway near as energy-intense as in PoW blockchains, as it’s only used to prevent spam.
  • DSP nodes (double-spend prevention) ensure that no user can double-spend any currency. They keep a copy of the cluster and monitor all transactions to prevent double-spending. An operator has to deposit a high amount of Coti into a specialized multi-sig account to run such a node.
  • History nodes store the entire history of a cluster and enable users to retrieve the full account history.
  • KYC Servers: when onboarding to be a contributing participant in the Coti network, users have to go through the KYC verification process, where their trust score is calculated
  • Zero spend servers send zero-value transactions whenever a source in a cluster has waited a long time without being validated or if a transaction can’t attach to a source using the algorithm. Zero-spend servers also are an indicator of if there are any problems with the algorithm.

Coti Trust Scoring Mechanism

The TrustChain relies on a trust scoring mechanism that establishes a score on each network participant. It keeps a layer of data on every user and determines which unconfirmed transactions select which prior transactions to validate. When joining Coti, the initial trust score is determined through KYC verification. It’s then continuously updated depending on the activities of a user. How many times users are involved in disputes, how many times these are resolved in their favor, and how the counterparties of their transactions have rated all influence the Trust Score, which is determined on a scale from 0 to 100.

Users are incentivized to gain a trust score since their transactions will be confirmed after, and they’ll have to pay lower fees the higher their trust score. Coti envisions that this will foster a trustworthy environment.

In case you wonder how trust plays a role in the confirmation process. Each transaction must validate 2 previous transactions in the range of its trust score, which is then attached to the cluster. An optimal Trust Score threshold makes sure that users with higher trust scores will reach the threshold faster, ensuring that their transactions are verified faster.

How fast? Coti currently handles 10,000 transactions per second. Visa, a centralized payment provider in comparison, handles on average only 2000 transactions per second.

In addition to the Trust Score, Coti includes a meditating service that enables users to settle their disputes in a decentralized, trustless environment.


The native currency of Coti is used for all payments on the platform. Additionally, it’s used as a deposit for users looking to be mediators or running a DPS node. Node operators earn Coti for their validating activities.

Coti is a highly ambitious project created by a team of professionals with vast experience in finance, payments, blockchain, and Web3. While DAG is still a fairly new invention, it offers a promising way for merchants to start accepting crypto payments.

Coti is now trading on Exchange with BTC and USDT pairs.



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