Coti: Future of Internet Payment
Online payment system has become an integral part of everyday life. Most online retailers use payment systems to process payments, for example payment by credit card or through Paypal. Credit card-affiliated payment processors, while more secure, can be expensive for online retailers. Added to the expense is the lack of interface between processing systems. It may be difficult or impossible for a PSP to link with other systems, resulting in processing and payment delays, lost transactions, and expensive fees.
There are many reasons that can lead to a failed transaction while doing an online payment. Sometimes, the reason can be as simple as a poor internet connection. At times, the transaction can fail while doing an online payment because the person might have entered some wrong detail. If you have a fast internet connection and has entered all details correctly and still the transaction fails while doing an online payment, the problem might be with the payment gateway or the bank’s server. It is important that the merchants choose payment gateway which has a high success rate.
While making an online payment, there are many parties involved into the same process. It starts from the Credit Card network, Banks, Switches, Processing Platform & Merchant platform. Once a payment is being processed, all the players play their role at the same time. And if any of these experience some issues at their end of network, the payment tends to fail.
There are a few reasons for the lack of scalability of current online payment system:
- Transaction not authenticated by card issuing bank
- Internet banking downtime
- Card issuer bank downtime
- Network issues
Bitcoin tends to make it easier to transfer some funds between two parties that are involved in any transaction but transactions on the Bitcoin network itself are controlled or confirmed by bitcoin miners which group transactions into “blocks” and add those blocks to the Bitcoin “blockchain” — the shared historical record of all transactions. The bad news is that this network traffic may produce delays of a few hours to a few weeks for some users.
COTI provides a combination of features, including integrated systems and gateways, addresses liquidity issues and minimizes delays, while preserving online transaction integrity. A payment processor that provides for immediate and individually processed transactions thus avoiding the delays often inherent in automated clearinghouse processes.
COTI is developing a payment network with low processing fees, transaction transparency and next to zero processing times, creating a system with an interconnected payment solution that shall be optimized for use by merchants, consumers and anyone wanting to make an online transaction.
COTI is developing a variety of technologies that will work in concert to provide consumers and merchants with a vastly improved payment experience utilising a globally decentralised digital currency, Currency Of The Internet (COTI), and a comprehensive payment ecosystem characterised by a number of key features:
- Instantaneous remittance that utilises distributed ledger technology in the form of a DAG (directed acyclic graph) structure.
- A global Trust Scoring Engine, which automatically assesses the interactions between buyers and sellers over time, assigning each network participant a unique Trust Score. Trust Scores provide a numerical representation of the relative value that each participant contributes to the COTI network and are used to assign network fees. It also facilitates the decision-making process by users and merchants and removes the dependence on a single centralised marketplace for ratings.
- A Mediation System that resolves disputes between transacting parties and maintains the integrity of the network. A first of its kind, the system leverages data science, game theory and an independent network of crowdsourced mediators to resolve disputes fairly and efficiently — without prompting a substantial increase in transaction costs
COTI is an improved method for scalability issues in todays payment system. COTI cares about the payment frustrations that merchants and purchasers are experiencing right now. It achieves a high transaction throughput by employing a directed acyclic graph (DAG) of transactions called the Cluster as opposed to a blockchain. It is designed to support day-to-day transactions between merchants and consumers.