Definitely, the use of Blockchain has increased in 2018. In the online payments field, various companies have attempted to create the new protocol that will overcome challenges of scalability and ease of use. However, scalability issues such as processing transactions speed challenge the potential. Blockchain technologies are inherently incompatible to use payments, at least not in the scale and trust desperately demanded in the industry. In the course of time, the linear blocks confirmation does provide the solution.

Moreover, creating trust between two disparate parties becomes an overwhelming challenge too. For the sub-industry of anonymous payments, the issue is irrelevant, but for the layer of merchants-consumers, consumers-consumers, and acquirer-to-issuer — the crypto world should provide a key .Narrow scoring methods to account for the risks involved between parties can unfairly affect excellent merchants .

COTI Presents - The Cluster Technology

To resolve industry challenges, COTI — The Currency of the Internet, has decided to develop a new protocol called Trust Chains:

1. To become a user in COTI’s network, you need to follow a short process which scores the level of trust in the network. Trust Score algorithms are one of COTI’s innovations.

After receiving a trust score, a user can send and collect COTI tokens.

Instead of using a blockchain-based ledger, COTI spotted the potential of directed acyclic graphs(DAG) to facilitate a unique way of solving the scalability challenge. COTI’s DAG is called the Cluster. Each node in the Cluster is a transaction in time, and so token transactions have to be attached to two prior transactions to be a part of COTI’s ledger. The Cluster solves the first issue of scalability by connecting transactions simultaneously and asynchronically( as opposed to linearly approving transactions presented by other projects).

In layman’s terms, the Cluster enables attaching transactions at a very fast pace, achieved by the validation process. This advantage is reached by implementing another layer of data on every user — the trust score. COTI embeds the trust score of each sender in two different algorithms in DAG:

1. Whenever a new transaction is initiated, it has to be connected to the two previous transactions.Each full node is responsible for creating the new transaction bundle, and by that, compose the attachment of the two other transactions which are in the range of their trust scores.

2. In a flow of time, such process creates a Trust Chain, for as the entire DAG is segmented into different flexible clusters by their accumulated trust score.

The Trust Chain-Based Consensus — New Data Confirmation Decision

Furthermore, the blockchain industry faces another dilemma — the variety and different uses of consensus methodologies used to achieve a precise confirmation regarding entering new data into the ledger. The issue becomes increasingly important when it comes to the realm of money transfer.Data should be handled carefully as far as trade risk is involved.Existing systems do not propose payments adjusted mechanism that indicates data confidence level.

COTI has figured out the inviting way to the data use in payments industry!

Proof of Work, as well as Proof of Stake, definitely work when the task is achieving consensus along with adding additional data layer. Each transaction connected to the Cluster is confirmed when its cumulated trust score reaches the predefined threshold, creating a reliable incentivizing mechanism of trust. Every user will be incentivized to maintain a high level of protection so it will increase its chance to be attached to a more senior Trust Chain, and as a result, improve confirmation times, as the cumulative trust score of each transaction will be a reflection of its overall trust connection of the network. As a result of the Cluster transaction increase, the confirmation times decrease.

The Mediation Layer

The Trust Chains add a truly unique value that COTI introduces to the blockchain world, specifically to the implementation of online payments. Trust scoring becomes the essence of achieving consensus embedded in the base-protocol itself. Furthermore, to support an entirely comprehensive payment solution, COTI developed an application layer of mediators for dispute resolution. Recalling Satoshi Nakamoto, customer Alice values merchant Bob’s goods or services more than Bob values Alice’s currency, thereby justifying the trade. In the word of online payments, the risks are inevitable: billing errors, unintentional transfers, unauthorized charges along with undelivered goods or services occur on a daily basis.Existing systems fail to provide actual solutions in the crypto world. In the COTI network, mediators will be able to honestly validate real world information in purchase disputes, enforcing the efficient and fair flow of commerce.Mediators place tokens to the right side and then splitting the share between the quorum. They add the human to merchants and consumers who wish to pay in tokens but couldn’t retrieve it in case of error.

COTI’s Trust Chains algorithms are the reason for its ability to achieve confirmation rate of 10,000 tps. The segmentation of trust score for each transaction and the creation of clusters with accumulated trust score manages to decrease the confirmation times and assure a trusted transfer of money that merely does not currently exist in the industry.







