COTI Launches the Trustchain Protocol for Enterprises, Merchants, and Stable Coin Issuers
The article was Originally published on Yahoo! Finance By Dan Edelstein on September 17, 2018.
COTI, the company behind the world’s first blockchain protocol optimized for payments and stable coins, has announced a launch of their Trustchain protocol AlphaNet. The protocol is an end-to-end solution for enterprises, merchants, payments apps’ developers, and stable coin issuers — addressing the downfalls of today’s blockchains. The Trustchain solves the classic problems of blockchain — scalability and transaction costs — while introducing unique features for payments and stable coins, like stability framework and charged back transactions.
The first viable solution of its kind, the Trustchain creates a working proof of trust (PoT) blockchain consensus system and is built on DAG data structure. The Trustchain also introduces for the first time a charge-back mechanism for cryptocurrencies, multi-DAG structures, smart contracts over DAG and stability framework to create stable coins.
COTI reports early traction with signed agreements from enterprises and developers.
The launch represents a substantial milestone in the business trajectory of COTI. Conceived as an MVP for the company, the Trustchain protocol is designed and created to provide a system for rapid, trust-based validation of transactions, while at the same time being fully decentralized and very flexible.
COTI has developed a unique algorithm, designed specifically to prevent network spamming, and to help to balance incentives for network participants. The Trustchain is designed to consider the Trust Scores of various users in order to evaluate the level of proof of work (PoW) necessary to confirm a transaction. Depending on the user’s Trust Score, the transaction can confirm in a much faster time. This rapid confirmation based on trust is the foundation of the Proof of Trust (PoT) consensus.
Additionally, the Trustchain introduces a novel solution to prevent double spend attacks on DAG: a robust network of double spend prevention (DSP) node clusters. All the nodes in a cluster dedicated to DSP will be connected to each other strongly, with an optimized protocol designed to increase cluster synchronization.
This DSP solution functions by adding a small number of highly trusted nodes within the network to serve just one purpose — namely, to provide network consensus on whether or not a specific transaction is valid or is a double spend. For any transaction to be validated, it requires the confirmation of a DSP node before it can be considered fully confirmed, while any attempts at double spend are identified, flagged, and refused.
Finally, the Trustchain includes an appeal service for network users, should any fraud of transaction question arise. This unique arbitration platform is designed to build a rolling financial reserve for merchants to be able to cover potential future claims and a whole network Reserve Credit Fund (RCF), built to guarantee this. Both reserve amounts are kept in COTI’s internal currency.
For users interested in learning more, the Trustchain AlphaNet is available for review here. You can also read the company’s informative whitepaper. The code undergirds and proprietary Trustchain protocol are all available on GitHub.
Exciting times are in store for COTI and everyone who has been a part of our mission from the very start. Be sure to tune in on 27 September, 2018 for an exciting webinar that will cover everything related to the code behind our Trustchain protocol. Be sure to secure your place by registering here
