Nodes
How much do you estimate the total node compensation cost to be as a percentage of transaction volume?
We don’t have precise figures as of yet, but this information will be released in future iterations of the network.
Who can run initial Nodes in the network?
Independent network users that have submitted a necessary questionnaire and KYC documents will be able to run Nodes.
What incentive do they have to do so?
Nodes earn fees for providing their services to the COTI network.
Full Nodes:
Can Full Nodes be run by merchants?
It is possible for a merchant to run their Full Node along with a customized wallet if they think it will provide a better experience for customers.
The whitepaper mentions PoW to deter spamming, will this increase the cost of the network?
COTI’s PoW model is unlike any other digital currency like Bitcoin. Low-to-zero fees will always be a cornerstone of the functioning of the COTI network.
DSP Nodes:
How will you safeguard the COTI network from Sybil attacks and collusion?
All DSP Nodes are responsible for identifying any potential double spends from Sybil attacks. Another possible attack can occur when a malicious party with a highly trusted account attempts to confirm transactions from another self-created account. The attacker may try to attach high trust transactions to the anonymous transactions to reach the confirmation threshold.
This attack, however, is impossible as anonymous accounts have low Trust Scores. Such transactions cannot be confirmed, as an account with a high Trust Score cannot confirm a transaction from a low trust account.
Fees
You mention in the whitepaper that fees will be set to zero and that Nodes can set a fee based on the quality of their service. What will be deemed quality service?
All COTI network participants are incentivized for their honest and trustworthy conduct within the system. Quality service is deemed to be timely, accurate and equitable.
Why include a cap on fees?
It’s crucial that the COTI network remain accessible to all participants, with speed, scalability and low-to-zero costs always at the forefront.
Mediators
Who are mediators, and how are they trained?
Mediators are an independent group of users from all around the world. Individuals who wish to register as mediators must satisfy specific requirements before being admitted to the mediator platform. Among other requirements, mediators must demonstrate relevant language proficiency and undergo an online assessment to determine they have the aptitude to perform the mediation tasks to a high standard. COTI endeavors to make mediation open to a broad group of people and will make available online training programs that can assist candidates in acquiring the requisite knowledge for contributing to the dispute resolution process effectively.
How much capital are they required to stake?
We don’t have precise figures as of yet, but this information will be released in future iterations of the network.
Because capital is needed for PoS, how will you protect against rich pools of users influencing disputes or contributing to collusion?
They have no incentive to do so as mediators are picked randomly and assigned to cases that they don’t pick nor do they know the participants in. More so, not just the size of the stake determines the winning participants.
Regulation
This is a utility token, which the SEC is against. What risks do you face?
According to the legal opinions received, COTI does not classify as a security, and the sale of COTI coins to members of the public does not constitute a breach of any relevant regulations. COTI coins will be made available only to American subscribers who meet the “accredited investor” status. A thorough assessment will be undertaken by an external reputable US-based service provider for such applicants to meet compliance standards.
Can this be deemed money transmission as per the FICEN? What licenses are required for COTI to operate?
We are in the process of obtaining licenses for the following:
- Payments and money services. Such licenses enable COTI-powered merchants to accept payments in digital and fiat currencies.
- Exchange and e-wallet services. Such licenses enable COTI to provide consumers and merchants with the ability to hold, exchange and transact in digital currencies.
We are also working in accordance to distributed ledger technology (DLT) regulations set forth by the Gibraltar Financial Services Commission (GFSC), as well as know your customer (KYC) and anti-money laundering (AML) guidelines.
BP execution
What is your go-to-market strategy?
We’re building an entire ecosystem consisting of the COTI coin, wallet, exchange and debit card. We have also signed a partnership with Processing.com, which will grant us access to thousands of merchants around the world by offering genuine value. Our merchant acquiring strategy is predicated upon providing the best possible solutions for merchants that need us the most across industries that face processing issues like travel, pharma, global e-commerce and more.
How will you scale?
Our TrustchainTM base protocol is inherently scalable as it’s based on a DAG data structure. The higher the network participants, the faster the confirmation times.
How will you solve the typical chicken and egg problem of onboarding merchants in the beginning?
We currently have a partnership in place with Processing.com that will grant us access to over 10,000 international merchants.
Governance
How will decentralized governance work?
Our decentralized governance model will provide voting rights for executing changes in COTI’s base protocol and deciding future use cases of the COTI coin. Futarchy governance is one such methodology that utilizes a team of experts who work to define metrics for implementing new developments. COTI coin holders can then collectively vote for the best possible outcome to reach a decision based on the wisdom of the crowd.
Personal Reflection
What have your proudest moments been since you launched COTI?
Probably two moments:
- Being recognized by a CTO of a very famous DAG project as a very smart protocol
- Being recognized by a very famous banker as a good investible story
What have your biggest mistakes been?
Building an offshore R&D team.
What experiences can you share about doing an ICO?
You are going to need a lot of advisors. Pay the higher price and pick the best ones. A-players attract other A-players. B-players attract C-players.
COTI is a fascinating and ambitious project, what worries you the most?
So many things… I would hate for it not to achieve its full potential due to reasons we can’t control like market sentiments.
Payment systems
Why has VISA/Mastercard not yet been disrupted?
VISA/Mastercard is a traditional payments system that has been around for the past 40 years. It had regulatory backing, buyer-seller protections and trusted third party intermediaries that have enabled it to thrive more than ever over the past few decades. These sort of pillars have their own inertia. Consumers and merchants alike are taken over by the force of habit.
Nevertheless, third-party financial intermediaries have only driven up transaction costs due to rising transaction fees. Such payment methods also cause common issues experienced in cross-border e-commerce, such as chargebacks, false positives and low approval rates by credit card companies. Rolling reserve requirements for merchants are also a point of friction and drive down profits for global businesses. Some digital currencies like Bitcoin and others have tried to solve these shortcomings, but have missed the mark in terms of providing a use case for everyday payments. That’s where COTI comes in with its low-to-zero costs, instantaneity and buyer-seller protections, as well as regulatory and licensing frameworks.
How will VISA/Mastercard react once COTI gains traction? Can they tokenize themselves?
Credit cards won’t be disappearing anytime soon, but major providers will need to keep pace with the value proposition of many digital currencies.
How do you think merchants will react to this?
We believe the reaction will be a positive one. We have a lot to offer to merchants – from low-to-zero fees and low rolling reserve requirements to buyer-seller protections and hedging services.
CryptoMarket
Is your outlook bullish or bearish for 2018?
I would say bullish. Blockchain is here to stay.
COTI’s base layer protocol and API for merchants are both in progress. COTI has also been working on developing its exchange infrastructure and consumer wallet offering and on defining the mechanics of its Trust Scoring Mechanism and Mediation System. The exchange and the consumer wallet are approaching completion and will be put to work this year.
What are some of your favorite tech projects?
Small niched ones like Cognito Protocol and super sophisticated ones like GHOST.
Are you worried about the scaling issues in the cryptomarket?
We have our grounds covered concerning scalability within the COTI network, so that will not create hiccups for us down the road. Many other digital currencies that operate on proof of work (PoW) systems are inherently non-scalable and will be faced with increased network congestion in the near term.
Closing
What is your vision for COTI in 2023?
By 2023 we envision that we’ll become the next generation digital payments network, as well as a processing solution for many other industries that are need of our base protocol.
Where will the cryptomarket be in the next five years?
We think it will be booming, particularly for digital currencies that provide the best value proposition for their users. Scalability, instantaneity, low-to-zero fees and ease of use all within a regulatory framework will be crucial for a thriving cryptocurrency market.