- Blockchain in Online Payment System -Issues
- COTI Project
Blockchain technologies and cryptocurrencies have proven to be successful tools for managing payment transactions over the last several years.
Crypto currencies such as Bitcoin, Ethereum have enjoyed the growth in popular interest and adoption, while blockchain technology has been been used in various cases, including supply chain management and decentralised health records management.
People have likened cryptocurrencies to the early internet, citing its enormous potential to disrupt payment systems in the same way the internet disrupted information accessibility.
However, the cryptocurrency has faced fundamental challenges, such as low transaction volume and expensive fee, which has caused a lower popularity.
It would be still hard to find the successful blockchain-based online payment system, as the cryptocurrency still lacks the capacities such as speed and volume to adopt it to the online payment solution. It may still take time to gain the reliability on Peer-to-Peer(P2P) transaction.
COTI (Currency of the Internet) project would manage issues in the blockchain-based online payment system by using its trust-based algorithms and related technologies.
The Project, using Direct Acyclic Graph( DAG) technology as data structure, sees “Trust” as a combination of historical behavioural data and objective information relating to buyers and merchants, and calculates the trust scores, based on its unique machine-learning algorithm. Trust used in the “Trust Chain” Algorithm would help the speedy validation and confirmation of transactions.
Trust Chain grows as new transactions attach to prior transactions, which results in an innovative consensus-based confirmation mechanism. A high level of trust, caused by upgraded Trust Chain, would bring benefits like a speedy confirmation time, in the end.
Meanwhile, COTI has built mechanisms to monitor, detect and defend against attacks, via its Double Spend Prevention (DSP) Nodes, to secure the safety network. The project also provides Mediation Service, enabling the transaction cancellation in case of fraud or troubles. Its service would be available via using COTI’s native currency(token) in its payment system.
The market size of consumer payment industry, dominated by Visa and Mastercard, is 2 trillion dollars.
COTI, using a 3rd-party based Infrastructure technology(PEAQ project), is aiming at building a next-generation payment network for consumers and merchants via using its Trust Chain technology.
COTI already raised more than 10 million dollars via ICO Presales and the project would plan a public sale with a hard cap as of 30 million dollars in Q2 2018.
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Edited by Genta Nakanishi