How COTI Is Using Trust to Transform Crypto Payments 771

Crypto naysayers have been pointing out that calling tokens “currency” is a misnomer. Sadly for crypto advocates, the naysayers do have a point. Cryptocurrencies do lack certain attributes of fiat currencies. They are yet to be generally accepted and their values are far from stable. Even with the emergence of Bitcoin ATMs and Bitcoin-backed debit cards, the cryptocurrencies still have to reach the level of ubiquity that fiat currencies enjoy.

This is partly the reason why crypto payments seem to struggle gaining momentum despite the current frenzy in the payments space. The boom of retail and digital commerce has triggered an arms race that prompted various entities like card companies, payment processors, phone manufacturers, and mobile service providers to make plays in digital payments.

Many of the currently available crypto payments projects focus on making Bitcoin and similar tokens usable. Crytopay and Uquid, for instance, offer wallets and physical cards that make cryptocurrencies spendable in existing checkout systems. Other projects like Ripple focus on grander things like replacing the infrastructure for transactions of banks and financial institutions. These projects have met varying levels of success but there still appears to be space for improvements and fresh takes.

COTI, an upcoming crypto token and payments platform, aims to transform the segment and push crypto payments to the mainstream. Instead of simply enabling the use of crypto assets to pay for purchases, it also plans to establish a healthy payments ecosystem that is based on trust.

Trustchain Protocol

Trust has become a vital factor in payments especially with the rise of peer-to-peer commerce and the gig economy. In such transactions, it can be impractical to use cryptocurrencies for payments. Blockchain payments are irreversible so it is quite risky to use when there are no mechanisms available to ensure that the other party will deliver once payment has been sent. For merchants, supporting even established methods like credit cards also entails risk due to the increasing cases of stolen card use and chargeback fraud. Chargeback fraud is expected to cost businesses $31 billion by 2020.

At COTI’s core is its Trustchain Protocol which aims to incentivize positive user behavior on the platform. The protocol keeps track of each transaction and creates a trust score for each user. Users (whether buyer or seller) who engage in smooth deals and issue-free trade would get positive scores. They are then incentivized with lower fees when using the platform. Those with spotless records will not be charged by the system. With such an incentive system in place, users are encouraged to be trustful and trustworthy when conducting business.

Cost Effective

A key advantage that crypto payments have over conventional mechanisms is cost. Traditional payments typically involve several intermediaries. A simple retail sale would often include a payment processor, a card company, clearinghouse, and a bank. Oftentimes, each of these entities would impose fees such as transaction fees, processing fees, and currency conversion fees – all of which affect pricing and the seller’s margins.

COTI helps users save on fees by linking the transacting parties directly thus eliminating the need for intermediaries. Through the Trustchain protocol, there is also little need to engage an entity to perform escrow services since parties are compelled to honor the agreements. COTI also features exchange integration allowing the platform to support multiple crypto and fiat currencies.

Dispute Resolution

The modern payments experience also demands other mechanisms that provide protection for users in cases where transactions get bumpy. Even with features like Trustchain, disputes can happen. In traditional payments, disputes are often handled by case agents who decide on the matter. Most of the time, the process isn’t transparent leaving users with little choice but to accept whatever verdict is handed. Card companies typically favor the customer in cases of chargebacks or fraud putting merchants at a disadvantage.

COTI decentralizes the dispute resolution process. Disputes are crowdsourced to mediators on the platform. So, rather than having cases be decided upon by some secretive process, disputes are resolved through a real jury of peers aided by the platform’s transparency. As a reward for participating in the processes, mediators get to earn COTI tokens.

DAG Architecture

Other crypto payment platforms rely on other blockchains like Ethereum to work. COTI runs on its own network which isn’t a conventional blockchain. Instead, COTI uses a directed acyclic graph (DAG) architecture that gives the platform speed and scalability. With DAG, transactions confirm each other so the network scales as usage ramps up.

This helps COTI avoid network bottlenecks that are common to conventional blockchains. COTI is expected to be able to handle 10,000 transactions per second. Bitcoin can only do about 2 transactions a second on average. Many crypto transactions also take time to get confirmed depending on the blockchain’s consensus algorithm. This makes most crypto tokens unusable for scenarios where speedy checkout processes are ideal. This wouldn’t be an issue for COTI.

Frictionless Experience

The modern business environment requires a frictionless experience. This is why retail and e-commerce demand dependable and feature-rich payments solutions. Unfortunately for crypto payments, simply providing means for crypto asset holders to spend their coins isn’t enough. Speed and performance also matter. Crypto payment services should perform quickly enough so that the experience isn’t a step back to what is currently available today.

Payments solutions must also be able to provide trustworthy mechanisms for parties to transact and resolve issues. COTI ticks all of these requirements by putting trust at the core of the service. Hopefully, the trust-based experience that the project aims to provide could help encourage more users to adopt crypto payments.

Previous ArticleNext Article

Leave a Reply

Electric Capital Launches $110 Million Fund Focused on Cryptonetworks and Blockchain Businesses 3969

Electric Capital today announced the closing of its second fund, a $110 million Seed and Series A fund, focused on cryptonetworks and blockchain enabled businesses. The firm is led by co-founders Avichal Garg and Curtis Spencer. The founders are serial entrepreneurs, prior executives at Facebook and Google, and investors in companies such as Airtable, Boom, Cruise, Figma, Newfront Insurance, Notion, and others. Electric Capital is partnered with world-renowned university endowments and philanthropic foundations for its second fund.

Fund II Continues to Focus on “Programmable Money”
Electric Capital has three areas of focus:

  1. Layer 1 Protocols where the base token is a form of money and a token that may become a non-sovereign, store of value.
  2. Decentralized Finance & Community Owned Networks where tokens align economic incentives. Some of these networks will decentralize existing entities in traditional markets while some will be entirely novel applications that were previously impossible.
  3. Crypto Enabled Businesses and Marketplaces where customers receive novel benefits enabled by cryptography, tokens, and blockchains.

“We support early founders from their first investment and love working closely with them for many years,” said Garg. “We’ve scaled products from zero to one billion users and teams from zero to hundreds of engineers. We help founders on scaling their organization, building products, cultivating communities and developer ecosystems, and more.”

“Today, a handful of big technology companies dominate the technology landscape. Everything has a price: in exchange for efficiency, we gave up platform independence, control, transparency, and our privacy. These are the exact dimensions on which cryptonetworks are better than legacy systems. Cryptonetworks represent a fundamentally new way of writing software,” said Spencer. “With our new fund, we hope to facilitate the building of new platforms based on these principles.”

About Electric Capital
Electric Capital is a venture firm that invests in cryptocurrencies, blockchain based businesses, fintech companies, and marketplaces. We compile code, profile nodes, analyze blockchains and open source projects, help secure cryptonetworks, and write software to help our portfolio companies understand their ecosystems. We publish an annual Developer Report that is the industry standard for understanding the developer ecosystems across cryptonetworks. Electric Capital and its founders have invested in crypto companies such as Anchorage, Bitwise, Celo, Coda, Derivadex, Elrond, Mobilecoin, Oasis, and NEAR.

About Avichal Garg
Avichal is a successful serial entrepreneur with executive experience at Google and Facebook, which acquired his previous company in 2012. At Facebook, he was Director of Product Management for the Local product group. Avichal is an investor in companies and protocols such as Anchorage, Bitwise, Celo, Coda, Dapper Labs/Cryptokittes, dYdX, Lightning Labs, and many technology companies outside of crypto such as Airtable, Boom Supersonic, Color Genomics, Cruise, Figma, Newfront Insurance, Notion, Optimizely, and Threads.

About Curtis Spencer
Before Electric, Curtis was CTO at Cruxlux, a semantic search company acquired by Kosmix/Walmart Labs and CTO at Spool, a mobile infrastructure company acquired by Facebook. At Facebook, he was an engineering lead on News Feed, Events, and Developer Experience during his tenure. He was an early investor in Bitcoin and Ethereum and has invested in various frontier technology companies such as Cruise Automation, Boom Supersonic, and SpaceX.

Bitcoin Association hires Patrick Prinz as Europe & Operations Manager to further advance Bitcoin SV 5169

Bitcoin Association, the Switzerland-based global industry organization that advances Bitcoin Satoshi Vision (BSV), has named Patrick Prinz, CFA as its new Europe & Operations Manager. Working out of the Association’s headquarters in “Crypto Valley” Zug, Switzerland, Prinz will serve two roles – advance the business growth of Bitcoin SV throughout Europe and support the operational needs of the organization globally.

Bitcoin Association supports Bitcoin SV because it is the only blockchain protocol adhering to Bitcoin creator Satoshi Nakamoto’s original design and vision for Bitcoin to become a peer-to-peer electronic cash system and global data ledger for enterprise. The Bitcoin SV ecosystem has rapidly grown to over 428 known Bitcoin SV projects and ventures worldwide. Developers and businesses are discovering the value of the Bitcoin blockchain when it massively scales — a public ledger capable of huge transaction volumes, micropayments, greater data capacity, smart contracts, tokenization, and many advanced applications.

A true believer in this Satoshi Vision for Bitcoin, Prinz has a strong background in financial services and strategy consulting. Most recently, he worked as a senior investment advisor for a global asset management group. Prinz advised on emerging technologies, and discovered the benefits of having a single, massively scalable, public, auditable ledger for storing any type of data and allowing value transfer at a micropayment level – only possible using the Bitcoin SV blockchain.

Previously, Prinz was a consultant at a leading strategy consulting firm – acting as advisor to international banks on how to incorporate complex regulatory requirements and adapt business models to industry paradigm shifts. He began his career in corporate and investment banking, working at Deutsche Bank and Citi. Prinz holds a Master of Science degree in Banking and Finance and a Bachelor of Science degree in International Business Administration.

Speaking on his appointment, Prinz said: “Bitcoin SV is finally fulfilling the potential that initially excited me about Bitcoin many years ago – to achieve efficiencies as the single public data ledger and micropayment system for the world. As I was puzzled by the fact that innovation and development were not happening on BTC, I did my own extensive research and realized that Satoshi Nakamoto’s original design and the Bitcoin white paper always had the answers to achieve a massively scalable global public blockchain. With scaling comes efficiency, and with efficiency come innovation and entrepreneurship – which is all happening on Bitcoin SV with the emergence of completely new business models powered by microtransactions and the immutable public ledger that Bitcoin is. I am thrilled to join Bitcoin Association to work with businesses and entrepreneurs to educate them on the transformative power which Bitcoin SV brings to the world.”

Jimmy Nguyen, Founding President of Bitcoin Association, commented: “With Patrick’s addition, we welcome to our team another high-caliber professional with international business experience. Patrick will play a vital role in operational management as we grow our headquarters in Zug, Switzerland. He will also be a strong business voice for Bitcoin SV across Europe – with his financial services knowledge, effective communication skills, and passionate belief in Bitcoin’s true power.”

Patrick’s hire is the latest step in the global expansion of Bitcoin Association. He joins two other regional business managers – Lise Li (China) and Ella Qiang (Southeast Asia, based in Singapore) – all with considerable experience in both Bitcoin and business. Additional team members come from the United States, United Kingdom, Australia, China, and New Zealand. The staff is further supported by Bitcoin Association Global Ambassadors in Argentina, Australia, Brazil, China, Germany, Israel, Japan, Netherlands, Panama, Russia and CIS region, the Scandinavia region, Slovenia, South Africa, South Korea, Spain, and the United States.

TradeStation Crypto Continues to Revolutionize the Crypto Space with the Launch of Several New Platform Features and Innovations 6507

TradeStation Crypto, Inc., a subsidiary of TradeStation Group, Inc., today introduced a series of new features to its crypto brokerage offering, including crypto deposits and withdrawals, new interest earning capabilities on eligible assets, ability to track profit and loss (P&L), and mobile trading through the TradeStation mobile app. The added features underscore TradeStation Crypto’s commitment to constant innovation and providing its customers sophisticated offerings and technology to support their needs and investment objectives.

With these new enhancements, crypto investors can not only buy and sell crypto, but can now deposit cryptocurrencies they already own. In addition, customers can earn interest on eligible assets simultaneously, without locking up their crypto. When combined with other traditional investment products – such as equities, options and futures – available to traders through another subsidiary TradeStation Securities, Inc., the TradeStation Group brand provides an all-in-one experience for investors and traders, a key differentiator in the crypto space.

“The current ultra-low interest rate environment has made it difficult for investors to earn interest on traditional products, which may incentivize certain investors to explore adding crypto to their portfolio,” said James Putra, Senior Director of Product Strategy at TradeStation Crypto. “Now, and for the first time, TradeStation Crypto customers can earn interest on their eligible crypto balances whether they’re actively trading or sitting on the sidelines during times of market volatility. Cryptocurrency interest could be a real game-changer,” said Putra.

The series of enhancements also includes P&L functionality. “We have one of the first crypto trading platforms with a feature that allows traders to instantly see their unrealized P&L to gain a better understanding of the status of their TradeStation Crypto account,” said Putra.

Additionally, TradeStation Crypto introduced mobile app trading capabilities to complement the features and benefits of the TradeStation Crypto platform. Investors and traders will enjoy augmented flexibility by taking the power of the TradeStation Crypto platform wherever they go.

“We’re thrilled to be able to add these new capabilities and offer our customers a one-stop-shop for all products under the TradeStation Group umbrella,” said Putra. “This is just the beginning of new innovations on the horizon to improve the customer experience. More features are being developed as we speak, and will be introduced to our traders in the coming months, as we strive to make trading crypto as accessible and intuitive as possible.”

Cellebrite Adds Cryptocurrency & Blockchain Investigations Solution to Industry Leading Digital Intelligence Platform 6082

Cellebrite, the global leader in Digital Intelligence (DI) solutions for public and private sectors, today announced the launch of Cellebrite Crypto Tracer, a new comprehensive cryptocurrency investigation solution designed to accelerate investigations involving blockchain technology and cryptocurrency. The solution, powered by CipherTrace, features powerful and easy-to-use tools, investigation services, and training programs designed for investigators, analysts and non-technical agents. The solution empowers teams to lawfully obtain evidence and trace criminals who use bitcoin and other cryptocurrencies for illicit activities, including money laundering, terrorism, drug and human trafficking, weapon sales, and ransomware schemes.

Every year, an estimated $76 billion of illegal activities involve Bitcoin. Nearly one hundred percent of darknet market transactions, including the sale of ransomware, illegal drugs and phishing kits, involve cryptocurrencies, in large part due to their ease of transacting online and across borders. The use of cryptocurrencies among criminals may have been furthered by their perceived anonymity. Transactions are recorded on the blockchain, which is a public ledger, enabling anyone to see the transactions though not the identities of those executing said transactions.

The Cellebrite Crypto Tracer Solution is designed to reveal illicit transactions using cryptocurrencies and enables investigators to aggregate and curate millions of open source and private references, deception data and human intelligence, resulting in a dataset of over 522 million attributable points. These data points give investigators full visibility into the lifespan of cryptocurrency transactions, including where the money originated and where it went, in both wallets and exchanges. Graphic mapping and color-coded threat level transactions enhance the visualization and understanding of the activities and accelerate investigators’ abilities to pinpoint primary and associated criminal activity and its perpetrators.

Powered by CipherTrace Inspector, the world’s most comprehensive cryptocurrency intelligence tool, the Cellebrite Crypto Tracer Solution gives investigators the ability to:

  • Utilize a Blockchain Search Engine: Simply enter a cryptocurrency address or transaction ID into an intuitive search bar that will auto-complete long addresses.
  • Conduct Risk Scoring: Profile hundreds of global exchanges, ATMs, mixers, money laundering systems, gambling services, and known criminal addresses and assign risk levels to transactions.
  • Show a Deep Analysis of Potential Risks: Non-technical users can visualize transaction flows to follow virtual money trails without becoming a cryptocurrency or blockchain expert.
  • Demonstrate High-Quality Advanced Attribution: Top entity typologies and attribution collection methods are easily identifiable within Inspector.
  • Leverage a Massive Transaction Database: Allows users to understand interactions with a powerful graph that traces the flow of funds over time and through the blockchain ecosystem.
  • Operate with Integrated Case Management: Gives investigators a convenient way to save research, replay searches, export investigation reports and collaborate with others involved in the investigation.

Also included in Cellebrite Crypto Tracer:

  • Cryptocurrency Investigation Services: The Cellebrite Advanced Services (CAS) team conducts criminal and civil cryptocurrency fraud investigations for law enforcement and corporations. Cellebrite certified forensics experts employ advanced techniques to expose financial cybercrime and fraud schemes by analyzing cryptocurrency artifacts and providing investigative teams with detailed documentation and insights through analyst level reports.
  • Cryptocurrencies Investigation Training: A 3-day course in best-practices for cryptocurrency investigation techniques. The class teaches investigators how to use CipherTrace Inspector to obtain and analyze evidence about individuals committing crimes using cryptocurrencies.

“It has long been assumed that blockchain and cryptocurrency transactions remain untraceable and unknown,” said Leeor Ben-Peretz, Chief Strategy Officer, Cellebrite. “This is a misconception. As a matter of fact, the essence of blockchain is to indelibly keep a record of each step of every transaction. We’re enabling investigative teams to extract this information and use the power of Digital Intelligence to aid them in interpreting the data needed to identify illicit blockchain activity and keep communities safe.”

“We’re very excited to offer our best-in-class cryptocurrency tracing and blockchain analytic capabilities to enhance Cellebrite’s Digital Intelligence, training and investigative services,” said Stephen Ryan, COO of CipherTrace. “As criminals increasingly utilize cryptocurrencies in their illicit activity, our partnership with Cellebrite will be that much more important to making the digital world a safer place.”

Tokeny Solutions Partners with Inveniam to deliver Data Integrity and Price Discovery for Private Securities 6915

Tokeny Solutions (Tokeny), an industry-leading tokenization platform based in Luxemburg and backed by Euronext, is announcing a collaboration with Inveniam and its Inveniam.io platform, delivering data integrity and price discovery. Tokeny’s technology, enhanced by Inveniam’s software, provides the foundation for increased private market asset liquidity and public-like performance of these assets. This public-like performance is made possible with data integrity and price discovery functionality driven by better data on the underlying businesses and their assets.

Tokeny and Inveniam will create digital securities for investors with seamless integration and will facilitate the secondary market trading of private market securities. Tokeny has expertise in the compliant issuance, transfer, and management of digital securities. The T-REX (Token for Regulated Exchanges) protocol allows market actors to apply trust, compliance and control while utilizing blockchain technology. Inveniam.io provides automated workflows, also known as robotic process automation (“RPA”). RPAs gather performance data on underlying real assets that inform digital tokens. Inveniam.io digitally certifies, indexes, fields, and validates real asset performance data that is commutable and proven.

“Inveniam’s data integrity and fair market value pricing functionality will enrich Tokeny’s security tokens to facilitate the forthcoming secondary market for real estate assets. The Inveniam.io platform complements ours, making this a synergistic tokenization powerhouse,” said Daniel Coheur, Co-Founder and Chief Commercial Officer at Tokeny Solutions.

“We look forward to a mutually beneficial collaboration with Tokeny in this initiative. This combined service will deliver real-time price discovery, liquidity and transparency for digitizing private assets; something that was not possible before now,” said Patrick D. O’Meara, Inveniam’s Founder and CEO. “Combining user-friendly end-to-end solutions of Tokeny’s technology with data integrity and real-time fair market value Verified by Inveniam™, provides a powerful competitive edge for private market asset owners.”

Orion Protocol (ORN) Wins KuCoin Community Vote DeFi Session, Trading and Staking Services to be Opened 9865

KuCoin, an IDG-backed exchange, today announced the result of the KuCoin Choice Community Vote (DeFi Session), Orion Protocol has won the voting and will get listed on KuCoin at 18:00 July 25. Meanwhile, staking service on Pool-X will be available from 17:00 July 22, with an annualized return of 39%. DeFi is the most trending topic in the recent blockchain industry with a large number of promising DeFi projects emerging. In order to contribute to the DeFi ecosystem and provide support to more DeFi projects, the KuCoin Choice Community Vote (DeFi Session) has been launched to select real potential DeFi projects.

Orion Protocol, the DeFi platform building B2B and B2C solutions on the most advanced liquidity aggregator ever developed, solves the largest problems in DeFi by aggregating the liquidity of the entire crypto market into one decentralized platform. With the ORN token at the core, Orion has built thirteen different revenue streams across their stack of solutions – from Orion Terminal to Orion Enterprise solutions for blockchains, exchanges, and crypto projects.

KuCoin Global CEO Johnny Lyu stated: “KuCoin has been persistent in its pursuit of finding and supporting blockchain projects with real potential. KuCoin has been paying attention to the DeFi field for a long time, and hopes to find hidden gems in DeFi for users. Community Vote is a good way to not only allow users to contribute to the KuCoin ecosystem, but also to better understand DeFi projects. In the future, we will explore more ways to support DeFi to accelerate its mass adoption.”

Orion Protocol CEO Alexey Koloskov Stated: “Orion bridges the gap between the centralized and decentralized worlds of crypto, solving the largest problems in DeFi by aggregating the liquidity of the entire crypto market into one decentralized platform. I’d like to thank our community for supporting us in this voting and I am very excited about the KuCoin listing. We look forward to working closer with KuCoin to BUIDL on DeFi in the future.”

KuCoin has always been a strong supporter of DeFi projects and has listed a number of real potential projects in the DeFi field, such as COMP, MKR, KNC, AMPL, LUNA, AKRO, etc. Furthermore, KuCoin is developing its own public chain – KuChain to further boost the prosperity of the DeFi world. KuChain’s testnet Kratos has launched its beta version and it aims to build a four-layer network based on the needs of DeFi and DEX, modularizing the protocol and functions, improving the ease of use of Kratos, and reducing the threshold for developer participation.