COTI, the company behind the world’s first blockchain protocol optimised for payments and stable coins, has launched of its Trustchain protocol, AlphaNet.
The protocol is an end-to-end solution for enterprises, merchants, payments apps’ developers and stable coin issuers – addressing the classic problems of blockchain, scalability and transaction costs.
It also introduces new features for payments and stable coins, such as stability framework and charged back transactions. COTI launches the Trustchain, a new (block-less) blockchain 3.0 protocol able to process tens of thousands of transactions per second COTI’s Trustchain includes proprietary technologies that enable developers and enterprises to build independent global scalable payments networks, based on DAG (Directed Acyclic Graph), and issue price-stable coins.
COTI solves the major problems that are holding back the scalability of current cryptocurrencies and stablecoins: speed, cost, energy consumption and trust. COTI’s solution is the world’s first protocol that is optimised for payments and stable coins, industries that are estimated in the trillions USD.
As a result, networks built on the Trustchain will be able to process tens of thousands transactions-per-second (TPS) in comparison to current blockchain solutions that process only a few transactions per seconds and with high cost per transaction.
COTI has already signed up 80,000 users and 5,000 merchants to use its technology worldwide as well as various enterprises, developers of payment networks, point of service devices among others.
Cryptocurrencies, such as bitcoin, are based on blockchains that require each transaction to be confirmed by miners through solving difficult maths problems. This means that transactions incur costly ‘miner’s fee’ and could take hours to process. Not to mention the energy consumed to run computational power for intense coding. As a result, Bitcoin is only able to process just above 2 transactions per second (Tx/S). This also creates a dangerous and unfair situation in which mining farms solve most bitcoin blocks.
COTI has architected a new blockchain based on DAG (Directed Acyclic Graph) data structure, called the Trustchain. DAG is block-less blockchains where there are no miners or blocks.
Each new transaction is validating two previous transactions to be added to the ledger. In COTI’s Trustchain, there are no miners or blocks, allowing for virtually real-time and low-cost crediting of funds to the other party’s wallet. Therefore, unlike Bitcoin, COTI is able to process tens of thousands TPS.
Not only that, but most currencies based on blocked-blockchains are massively inefficient due to their energy consumption. Removing miners on the Trustchain will dispel the use of computing power and remove the abundance of energy consumption, emphasising the importance of environmental responsibility for crypto platforms.
On COTI’s Trustchain protocol, each participant is granted with a trust score to predict his trustworthiness behaviour on the network. Users who consistently receive minimal or no complaints for their activity receive higher positive scores. As a reward, they face lower fees for using the Trustchain. Those with spotless records will be charged zero fees by the system. With such an incentive system in place, users are encouraged to continuously conduct trustful and trustworthy transactions.
Furthermore, current blockchain-based payments can be untrustworthy due to the fact that they are irreversible. For instance, there is no buyer-seller protection in place that will guarantee a seller will deliver on their promise once payment has been transferred.
However, even with features like the Trustchain, disputes can happen. COTI replaces fiat’s lengthy and blockchain’s non-existent dispute resolution processes with a transparent and decentralised process. Disputes are resolved through a real jury of peers made up of COTI users, who are rewarded in COTI coins. COTI’s approach to mediation involves harnessing an independent network of crowdsourced mediators to resolve disputes fairly and efficiently.
