COTI has developed and launched its own blockchain based on DAG (Directed Acyclic Graphs). They have called it the Trustchain. According to its CEO, “[the company has] a belief that developers and enterprises will build ground-breaking applications on our platform. Early traction proves that we have built a platform that is in real need.”
Many have hailed DAG to realise the next cryptocurrency revolution, blockchain 3.0, following popular cryptocurrencies such as Bitcoin (blockchain 1.0) and Ethereum (blockchain 2.0).
Like the Ethereum blockchain, however, COTI is welcoming merchant and users to build upon its decentralised payments network. COTI has already signed up 80,000 users and 5,000 merchants to use its technology worldwide, including point of service terminals. COTI will issue its own stable coin to conduct transactions between buyers and sellers.
COTI solves the major problems that are holding back the scalability of current cryptocurrencies and stablecoins: speed, cost, energy consumption and trust.
Cryptocurrencies, such as bitcoin, are based on blockchains that require each transaction to be confirmed by miners. 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 (TPS). This has also been criticised for allowing a small group with large computing power to confirm many transactions.
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 validated by 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, according to the company.
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.
Shahaf Bar-Geffen, CEO of COTI, said:
“We are launching the world’s first protocol that is actually optimised for payments and stable coins. For cryptocurrencies to reach their true potential, they must become a cheaper, quicker and easier means of payment than they are currently. Unfortunately, any blockchains that rely on confirmations from miners will never be truly scalable. We need a system such as COTI that reevaluates the structure of blockchains. COTI is doing for payment apps and stable coins what Ethereum did for dApps. This will set the standard for next-generation payment solutions and stable coins that is safe, easy to use, instant and cost-effective.”
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