Business Strategy:
COTI is not the only project to see how lucrative the transaction payment space can be, they will have competitors from both the digital currency space and the banks/credit card companies. Let’s talk about how they can compete with all these projects and institutions.
We touched on one already, DAG will help with scalability, low to zero transaction costs and less overall network congestion. COTI will be decentralized, which is a huge advantage over your typical card network, but obviously other digital currency competitors will also be decentralized.
Next up is TPS — COTI will be aiming for 10,000TPS along with instant confirmations. This will mean they have a distinct advantage over most other digital currencies but will not be at the card network of 65,000 TPS.
Reliability — COTI will use independent mediators to achieve reliability. There will be a group of mediators who will not know the other decisions thus creating a system that is truly fair and efficient. This is a big problem for card networks when it comes to cross border payments — coti plans to take advantage of this.
This mediation system also allows for efficient and decentralized buyer/seller protection. This is another very costly area for card networks that they make up for via their higher fees.
Transaction costs — one of the more important items for the success of any project in this space. COTI will implement a trust-based mechanism for its users, simply put the higher your trust score the lower your transaction fees. Card networks rely on trusted 3rd parties (another hand in the cookie jar). Digital currencies are trustless and COTI will allow users to generate trust. Trust score is loosely based off Google’s search engine algorithm and will be calculated using the following parameters:
