COTI: A Layer-1 Blockchain Ecosystem for Payments

COTI: A Layer-1 Blockchain Ecosystem for Payments

6 Min.

COTI is poised to revolutionize the traditional finance industry by creating a blockchain ecosystem that enables quick and secure transactions with minimal fees. By eliminating intermediaries and empowering organizations to construct their payment platforms and digital currencies or stablecoins on the Trustchain protocol, COTI is striving to bring a novel approach to the financial world.

COTI is a FinTech platform that provides a comprehensive infrastructure for creating, deploying, and managing digital payment solutions such as stablecoins, transfers, and more.


COTI is a layer-1 fintech blockchain ecosystem engineered to resolve the issues present in centralized and decentralized finance (CeFi and DeFi). This is achieved by introducing a new Directed Acyclic Graph (DAG)-based protocol and infrastructure that promises to be efficient, cost-effective, fast, scalable, private, and inclusive. It utilizes a blend of Proof of Work (PoW) and DAG – dubbed Proof of Trust (PoT) to attain a consensus.

What are the functions of COTI?

COTI is developing a comprehensive suite of digital financial tools and technology for the modern digital economy. This ecosystem will offer a full range of products and services from the foundational to the application layer.

The scalability issue of leading blockchains, such as Bitcoin (BTC) and Ethereum (ETH), has become a roadblock to mainstream adoption. When users request a transaction, it is listed in a temporary block and must be validated or “accepted” before it can be added to the existing chain of blocks in the blockchain. This process can be excruciatingly slow; for instance, Bitcoin can only confirm up to 20 transactions per second, while Visa can process up to 65,000 transactions per second.


Trustchain, a layer-1 blockchain protocol consisting of a directed acyclic graph (DAG) data structure, is at the core of the COTI network. This structure enables lower transaction costs and helps to boost the throughput to up to 100,000 transactions per second (TPS).

Proof of Trust is a system that confirms the trustworthiness of an individual or entity. This is done through verification by a third party that the user has a legitimate track record of good behavior based on various factors, such as past performance and reviews from other users. Proof of trust is used for various purposes, such as verifying identity, creating credible business relationships, and verifying the legitimacy of products and services.

COTI leverages Trustchain, a DAG-based data structure, and PoW to create a Proof of Trust consensus mechanism to tackle scalability issues.

The Cluster

The Cluster, a distributed ledger for recording transactions on the COTI network, differs from traditional blockchains. Instead of grouping transactions into blocks, each transaction is placed in sequence, one after the other. The network requires linking it to two previous transactions for validation.

Which transactions should be linked in PoT depends on the user/node's Trust Score. The Trust Score is determined based on the historical behavior and payment history of the user/node. Those with higher Trust Scores will have their transactions processed more quickly, resulting in a lower fee.

When a transaction is initiated on COTI, the Source Selection Algorithm randomly assigns two validating nodes with similar Trust Scores. This significantly expedites transactions from users who have reliable Trust Scores. Furthermore, the system can be efficiently scaled and secured by validating multiple transactions with different Trust Scores in parallel.

COTI does not use traditional mining to gain trust but instead utilizes PoW to protect the network from spam and to incentivize participants. PoW must be completed to attach transactions to the Cluster. Still, the likelihood of successful attachment relies heavily on the Trust Score of the participant — which also sets the PoW levels and, thus, the transaction fee levels. Since there is no mining required, COTI can offer low transaction fees.

MultiDAG Layer

The COTI MultiDAG ecosystem mirrors that of Ethereum, with several distinct DAGs operating at one time. As each independent DAG hosts its tokens, applications, and protocols, they run on the same infrastructure to optimize performance on the entire network.

COTI MultiDAG 2.0 will allow developers, merchants, and enterprises to launch tokens enriched with its Trustchain, including scalability, high speed, low cost, and user-friendly payment solutions like COTI Pay Business.

The MultiDAG allows users to generate fiat-backed, crypto-backed, or collateral-free stablecoins. For example, COTI is the official issuer of the Ada (ADA) anchored stablecoin, Djed, and the ADA Pay payment system.

Coin Issuance Service

After MultiDAG 2.0 is launched on the mainnet, enterprise clients can use COTI's MultiDAG technology to generate their stablecoins and other digital currencies according to their terms. Clients taking advantage of this service will benefit from reduced transaction fees, a reliable infrastructure, integrated privacy modules, and prompt assistance from COTI's professionals. In addition, they will have the advantage of having the capability to issue as many tokens as desired at cost-efficient levels.


Djed is the world's first algorithmic stablecoin, powered by COTI and built on the Cardano blockchain. It is designed to be used in DeFi operations, utilizing smart contracts to maintain its value. Not only is Djed a dependable and stable currency intended to become the main coin used as payment for transaction fees throughout the Cardano network.

COTI Pay Business

COTI Pay Business is a partnership between organizations and COTI. Businesses of all sizes can leverage COTI's Trustchain and MultiDAG technology to take advantage of COTI Pay's innovative infrastructure and use new COTI Native assets to facilitate retail and merchant transactions without incurring substantial costs.

The COTI Treasury

The Treasury of COTI is a provably reliable, decentralized pool of $COTI where users can deposit funds and be rewarded for their involvement. The Treasury constantly expands due to the fees the entire COTI ecosystem pays for its services, whether directly or indirectly. All fees accumulated from COTI products are funneled into the Treasury, where users are rewarded accordingly. In the same way, COTI will launch its governance token soon; it will be distributed among Treasury users and those that support its growth, allowing them to discuss, propose and vote on changes to its protocol.

What Is the COTI Coin? 

The COTI token is the native cryptocurrency within the COTI system. It is based on a DAG protocol, with a total supply of 2 billion. COTI does not use a traditional PoW mining process to maintain ledger security; instead, it operates on three mainnets: Trustchain, Ethereum, and BNB Chain.

  • TrusCtchain is COTI's proprietary mainnet for secure and efficient digital transactions.
  • COTI is available as an ERC-20 token for use on the Ethereum network. The token is traded on various cryptocurrency exchanges and is supported in DeFi applications.
  • BNB Chain supports BEP-2 and BEP-20 versions of COTI within its ecosystem.

COTI token holders can access the COTI Bridge to link up different networks (mainnets). Not only can COTI be spent for services inside the ecosystem and stored in the COTI Treasury to participate in DeFi staking. Users who hold COTI in the Treasury will be rewarded according to their staking amount.


Crypto requires a Layer 1 platform suited to consumer-merchant payments' needs, and this is what COTI is providing with their Trustchain, based on a Directed Acyclic Graph. COTI is cultivating relationships with other projects and merchants to introduce more use cases on the platform soon. All fees accrued within the COTI system will be centralized in the Treasury and returned to the community in reward.

Proof of Trust
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