COTI was created by the Coti Group in 2017, with the first product, COTI Pay, launching soon after. COTI was designed as a bridge between traditional payment methods and distributed ledger technologies. Unlike other cryptocurrencies, Coti uses a distributed ledger technology known as directed acyclic graph (DAG) rather than a blockchain. DAG networks are designed to be more scalable than blockchains, enabling a higher rate of transactions and a quicker settlement time. While the Bitcoin network, a blockchain-based system, can handle around 5 transactions per second (tps), Coti can handle up to 10,000 tps.