As is the case for any system, blockchain technology also gets updated with new protocols being added and tested with the latest updated version being blockchain 3.0. Here in this article, we take a look at a new company, COTI (Currency of the Internet), which is designing a block-less and miner-less blockchain system that solves the scalability issue of cryptocurrencies and slightly upgrades bitcoin from its current status.
Huge amounts of electricity are needed to mine cryptocurrencies, hence with more computational power, a particular miner can get superiority over other miners in the same system. There are tremendous costs involved in the mining process, mostly because of heavy electricity consumption. COTI claims to be miner-less. A miner, in general, confirms transactions of Bitcoin with a speed of 3-5 TPS (Transactions per second) and Ethereum with a more better speed of 15 TPS. Delays and issues are expected when people start using it for every other purchase like everyday shopping using cryptocurrencies. There will be a large amount of energy needed to code and execute the same.
DAG (Directed Acyclic Graph) Data Structure or Trustchain
COTI technology is built on top of a protocol known as DAG (Directed Acyclic Graph) protocol. This DAG data structure is called the Trustchain. DAG is claimed to be block-free and miner-free. Graphs are acyclic in nature, flowing in a particular direction, making the transactions difficult to be a subject of forging. This clearly interprets that the transactions are confirmed automatically based on the previous transaction. This drastically reduces the cost that was earlier given to miners as a charge or fees for their coding skill endurance. COTI aims to further reduce the third-party involvement in the system by removing the need for miners. So if there are no miners, there remains no coding and no energy consumption for computing (this amount is very huge). One more advantage of COTI includes safety against recent well documented cyber attacks by storing user’s fund in cold offline wallets.
It is more of a shock than a surprise to know that COTI in comparison to Bitcoin’s 3-5 TPS, is able to process 10,000 TPS. COTI is into a partnership with EY, who will use all payment services of the Company, and many more partnerships with firms like Bancor and Stox, which are the big names under the roof of blockchain industry. Though the company has grown through various partners, COTI is a real business and has not yet gone through an ICO. But COTI has an operating system with 80,000 users, 4,000 merchants, worth $15m+ already, and already being used on 250,000 POS terminals in shops globally.
The company has got a strong, experienced, and elite management team and executives. They serve as the backbone of the firm. Notable executives include Greg Kidd (an early investor in Twitter, Square, Coinbase, Ripple), Steve Heilbron (CEO of Investec plc) and Dr. Matthew McBrady (CIO of Blackrock), as well as further executives from JPMorgan, Goldman Sachs, HSBC, UBS, KPMG, and IBM.
COTI and Proof-of-Work
COTI achieves Trustchain protocol security in the network by the introduction of DSP (double spend prevention) Nodes and by the application of trust to every participant involved in the network. Double spendings attacks are eliminated using COTI, making transactions much safer than the present scenario. The firm focusses on adding few highly trusted Nodes to the network with the primary function of reaching consensus on whether the transaction is legitimate or a double spend. The transaction is cross-checked by looking for a more than half of the DSP Node signature and then the consensus is achieved. COTI also uses Proof-of-trust (PoT) required for the validation of transactions. If an attacker is able to make small transactions then trust score of the account will be decreased. This in return gives an increase to the PoT needed to create new transactions and hence blocking such kind of attacks very quickly. COTI has all transactions verified by Full Nodes making it more secure.
Until now, COTI has launched the Trustchain AlphaNet protocol, on chain KYC, the trust scoring mechanism and COTI Pay. By the end of November 2018, the Company plans to release COTI-X exchange and first white label solution. This is expected to be followed by the rollout of the Company’s Arbitration System during the TestNet launch on 30 December 2018. Smart contracts and POS integration are estimated to be executed by Q2’19.
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