There’s been a lot of hype lately around blockchain technology and its potential uses. Many companies are scrambling to find the right way to implement it into their business model, but COTI has been ahead of the curve for quite some time. With their new Multidag 2.0, they will soon complete the last piece of their Layer 1 Enterprise blockchain solution once the upgrade is complete. This is great news for COTI enthusiasts and crypto investors alike, as it opens up a world of new possibilities for COTI’s platform. So what does this mean for the future of COTI? Keep reading to find out!
Below is a COTI’s Roadmap 2022 Update written by COTI’s CEO Shahaf Bar-Geffen:
Today marks the third anniversary of COTI’s Trustchain Mainnet’s launch as well as the COTI coin launch, which took place on June 4, 2019. During those three years, we have accomplished a lot. We’ve successfully launched advanced products such as COTI Pay and the COTI Treasury, we are issuing Cardano’s overcollateralized stablecoin Djed, and we have created liquidity by listing the COTI token on all of the top exchanges, and we grew a community of over 300,000 members, and so much more. For those of you who read this, you can be proud to have taken part in this journey. We cherish your support and plan on continuing to be worthy of it.
Before I dive into the way I see COTI in the future, I’d like to start by explaining what’s happening right now in crypto, when it comes to enterprise blockchain.
We are seeing more and more enterprises and central banks looking into digital currencies, specifically issuing their own tokens and forming their own private payment network. Enterprises have a lot to gain by creating a payment network with their users as it slashes their costs, speeds up their operations, and creates unprecedented loyalty. It has become clear that there is a growing demand for these new types of private tokens. However, the current Layer-1s out there do not yet meet all the enterprises’ needs.
There are 3 main reasons why Enterprise blockchain, the adoption of blockchain by major enterprises, has so far generally failed:
- Technology — current Layer 1 solutions are too slow, expensive, and have a lot of adoption friction both for the user and for the enterprise (like the requirement from someone new to crypto to download a wallet, store keys, acquire gas tokens, etc). COTI’s trustchain, on the other hand, is a perfect fit.
- Regulation — enterprises cannot and will not take any regulatory risks when it comes to using 3rd party technologies. The fact that Layer 1 out there hasn’t completed KYC/AML checks to their user base is a huge problem. There’s only one Layer 1 that did that: COTI.
- Enterprise grade products — enterprises don’t just look for technologies, they are looking for turnkey solutions. The current state of things in crypto is that different providers build different pieces of the solution, but the chain itself is a foundation that doesn’t take part in solving the enterprises’ specific needs. This is not how enterprise solutions work and COTI can fix that.
Related article: MultiDAG 2.0 & Explorer 2.0 on Testnet | Branded Enterprise Tokens on COTI’s Trustchain Multi-Token Layer Infrastucture Coming Soon!
COTI has accomplished two major milestones which makes us prime to actually meet the enterprises’ needs right now, coincidentally right on our 3 years anniversary. First, the COTI Treasury has accumulated hundreds of millions of $COTI, which has created new types of liquidity opportunities. Second, MultiDAG 2.0, which will allow the issuance of multiple tokens on top of our chain, is about to be released!
With the ability to launch multiple tokens on top of the Trustchain, using all of the DAG capabilities, COTI can serve enterprises who wish to launch their private payment network like no other Layer 1 in existence. Here’s why:
COTI has Unique Technology that Enterprises Need
COTI is based on a DAG, which allows scalability while remaining secure. It also offers instant settlement and a privacy layer. The MultiDAG2.0 is a critical technology as it allows other tokens to be built on top of our Trustchain and enjoy our protocol advantages. In addition, COTI’s Proof of Trust Consensus mechanism is eco-friendly, unlike PoW, which becomes more and more important to enterprises and users.
Moreover, COTI developed a very unique feature for enterprises and their users: The Payment Request. This functionality allows the enterprise to cover the gas costs of a transaction, which means that users looking to transact with a merchant or an enterprise don’t need to hold COTI in order to pay the gas fees of the transaction. It is so much easier for users who are not yet into crypto to adopt it when they don’t need to figure out what gas tokens mean and how to acquire it. COTI’s experience is similar to Paypal’s, as there’s no need for education nor for complicated processes that hinders adoption. COTI is the only Layer 1 that makes it possible for enterprises to pay those fees on behalf of the users. This means adoption.
COTI is Regulation Ready
Regulations are coming. COTI’s approach is very prudent when it comes to regulation as we have been anticipating those regulations and is also the reason why we have been doing KYC and AMLs checks to all of our users since inception. In order to work with enterprises and major clients of the world, one must abide by regulations. Not being regulated is a risk enterprises are not willing to take.
Djed is a clear proof of COTI’s prudent approach, which has earned us the trust of Cardano as the official issuer of its coin.
Our Treasury, which has hundreds of millions of $COTI in it right now, is another opportunity as it is a clean liquidity layer. Every single $COTI that has been deposited has gone through the KYC and AML processes.
COTI is regulation-ready, which is a base requirement to be able to work with enterprises.
Enterprise Grade Product
In order to understand why COTI provides an enterprise grade product, we need to talk about
how other Layer 1s work. Etherium, for example, is a foundation that developed a protocol. As an enterprise, if you are looking for a solution, you need a company with developers and integrators to develop it for you. The enterprise will need integrators and different providers to work in sync to be able to produce what it needs, and then hope that changes in the public chain itself don’t break the solution that they came up with. At the end of the day, enterprises must have a deep understanding of- and predictability about the products they launch. COTI is an all-in-one company — protocol and commercial development are both under the same roof.
The enterprise will be able to work with a single point of contact. This is critical.
Moreover, COTI offers a turn-key solution to enterprises which can be also white labeled: wallets, fiat on and off ramps, processing gateways, Debit cards and bank accounts.
To summarize, I believe that other Layer 1s can be great for a lot of other things, but have failed in helping enterprises to enter the web3 era, and the following is why:
- They are too expensive and slow
- Difficult to develop by Enterprises
- Friction of adoption to users
- The are not regulation ready
COTI, on the other hand, is ready for enterprises, and the following is why:
- Our unique technology — DAG based: fast and cost effective
- Turnkey solution to enterprises
- Super simple for users
- Regulation ready
What’s coming? What to expect?
We have been talking to a lot of enterprises lately and our assumptions about their needs align. We are brainstorming with multiple partners on how to best use COTI to meet their needs. Although it is a long process, you can expect some announcements about enterprises using our infrastructure.
We are hard at work to deliver the goals we set on our 2022 roadmap. That includes MultiDAG2.0, Bridge 2.0, Explore 2.0, Treasury upgrades, Djed and more.
I personally want to thank you for staying COTI and supporting us under all market conditions. Tourists leave when the sky is cloudy, locals stay as they understand the seasons. We are here to STAY, now more than ever.
MIT Technology Review Insights: As the adoption of digital assets accelerates, companies are investing in innovative products and services.
Cryptocurrency is fast gaining mainstream acceptance as consumers look for innovative ways to diversify their savings, protect against inflation, and save on transaction fees.
Big-name brands are taking note: PayPal, Starbucks, AT&T, AMC Theatres, Microsoft, and Whole Foods are among a growing battalion of organizations that now accept payment in cryptocurrencies. In fact, nearly 16,000 venues around the world accept cryptocurrency payments, according to Coinmap.org. And the cryptocurrency market is expected to grow from $1.6 billion in 2021 to $2.2 billion by 2026, according to a report published by MarketsandMarkets.
At the same time, cryptocurrency presents an opportunity for companies to create new and innovative offerings around these digital assets. Examples range from mobile apps that allow consumers to get started with cryptocurrency quickly and easily to platforms that automate bitcoin purchasing for fledgling investors.
Cryptocurrency fuels new business opportunities
But while staking a claim in today’s cryptocurrency market can drive customer engagement and competitive wins, the right set of tools and talent are required to hurdle obstacles that include consumer fears, technology headaches, and compliance concerns.
Crypto market demand
Consumer demand isn’t the only driver of enterprise cryptocurrency adoptions. Digital assets such as bitcoin, ethereum, solana, and avalanche, are based on a distributed ledger called blockchain. This decentralized approach means data is stored in an individual’s crypto wallet rather than in a centralized depository where data breaches can occur.
A blockchain general ledger is used to verify and record every transaction, making cryptocurrency transactions not only more secure than credit and debit card payments, but faster by eliminating the need for time-consuming third-party verification. “We’ve seen increasing demand from merchants—from supermarkets to fast-food chains—that want to accept crypto because it truly is a win-win for consumers and merchants,” says Sara Xi, chief product officer at Prime Trust, a fintech infrastructure provider with API crypto integration.
Lower transaction fees are another advantage of cryptocurrencies. “Crypto really needs to be adopted just like any other fiat payment rail. When consumers pay for stuff, they can simply pay with crypto and bypass conversion to a fiat currency as an intermediary,” says Xi. “Credit card processing fees will be irrelevant for merchants or consumers.”
In addition to cost savings, cryptocurrency is enabling businesses to access new target demographics. Take, for example, The Pavilions Hotels & Resorts group, a Hong Kong-based hospitality group. The Pavilions is one of the first international hotel chains to embrace digital currency payments. Customers can book rooms in many of the hotel chain’s global destinations, based on the currency and location they are situated in at the time of booking, using bitcoin, ethereum, or 40 other digital currencies.
According to Scot Toon, managing director of the Asia region of The Pavilions Hotels & Resorts, accepting cryptocurrency payments has helped The Pavilions Hotel Group to nurture lucrative crossover markets, such as luxury travelers who also happen to trade in cryptocurrency.
Joseph Lupo agrees. Lupo is a general manager with CoinBits, which helps businesses and investors securely build, manage, and protect their money in a private bitcoin portfolio. “We saw a demand for higher net-worth individuals and businesses who want to invest in this new asset class,” says Lupo. “They need an on-ramp and someone they can trust since bitcoin doesn’t have a team or headquarters, so we started Coinbits Reserve to help businesses and higher net worth individuals invest in bitcoin. We manage their investments but also focus on education and what this new form of digital, finite money can do for them.”
While companies ponder potential business models and use cases for cryptocurrency, there are factors to consider before entering the market. Cryptocurrency is still marked by volatility and wild price fluctuations. And security and regulation compliance concerns can slow adoption in more heavily regulated sectors, such as finance. “Banks are going back and forth on how they can get into crypto compliantly,” says Xi of Prime Trust. “What’s holding them back is that the regulations in this space require both crypto domain knowledge and compliance expertise to understand. Making it worse is that there haven’t been clear regulations on what’s compliant.”
Also pressing is the need for IT infrastructure to evolve to integrate cryptocurrencies. For example, The Pavilions Hotel relies on a legacy booking engine for guests to reserve a hotel room online. However, Toon says the system was unable to accept cryptocurrency payments. The company searched for an alternative, but in the end, Toon says, the hotel chain wasn’t “able to find a suitable vendor that was willing to allow us to put cryptocurrency through the booking engine.”
As a result, rather than book online, The Pavilions’ crypto-paying guests must make a direct booking through the company’s reservations center. Following a call, an agent delivers an email containing a link that guests click on or scan to complete a cryptocurrency payment. It’s an extra step that Toon says can “slow down the process. People want to book now—they don’t want to talk to anyone or email anyone. They just want to make the reservation themselves.
As cryptocurrencies gain mainstream acceptance, Xi says businesses will increasingly seek out agnostic IT infrastructure that allows for easy integration with a wide array of features and solutions. Otherwise, she notes, “it can become overwhelming and cost prohibitive to deal with multiple vendor integrations.”
Another challenge facing organizations entering the cryptocurrency market is a scarcity of qualified talent— a key component in developing innovative products and services. “We all know that engineering and product talent in crypto is extremely hard to come by these days,” says Xi. Which, she says, can lead to one of two unfavorable outcomes: either “huge costs upfront to staff in-house teams,” or alternatively, if a company chooses to scrape by on a modest-sized team, “a really long time to go to market and a missed opportunity” to gain a competitive edge.
Get the full report here.