Financial institutions today serve as the primary third-parties that process electronic payments for online trading. It is an effective system with many advantages like convenience, mobility, fast fund transfers, etc. However, it also carries along a load of drawbacks such as security threats, lack of irreversible transactions, high transactional fees, etc., and these stumbling blocks cannot be given an oversight. The online trading domain is constantly on the lookout for a system that can help resolve these setbacks so that traders can harness more benefits from it.
These challenges can be avoided by the use of physical currencies and better communication, but there is no mechanism to transact over a communication channel without involving a trusted party.
The need of the hour is a system based out of blockchain technology, that functions on evidence instead of trust. This allows the two parties to seamlessly and securely conduct transactions with one another without the need of a third party. Counos is an open-source, decentralized application that aims to offer sellers and buyers a platform to communicate and transact with each other. This user-friendly ecosystem gives sellers the opportunity to create, manage, and authenticate listings. Additionally, an organized series of open-source protocols are also integrated into the main platform that defines standard functionalities of the marketplace.
The Counos platform functions via the “Counos Coin” that signifies a chain of the digital signature. Every owner transfers this coin to the succeeding owner by digitally signing a hash of the previous transaction and appending the public key of the next owner to the end of the coin. The recipient can verify the signature to authenticate the chain of owners. Further, a central and reliable mint is incorporated that validates each transaction for double-spending, to prevents duplicate coins.
Another fundamental aspect of the Counos platform is the Timestamp Server. Timestamp aims at offering reliable legal evidence regarding the business transaction at a defined time, and further ensures that no alterations have been made since then. It works by taking the hash of a block of time-stamp records and posting the hash publically, say as a Usenet post or as an editorial. Each timestamp includes the previous timestamp in the hash and develops a chain where every additional timestamp reinforces the previous one.
The network has developed peer-to-peer distributed timestamping servers that use a proof-of-work consensus mechanism. It works by initiating a nonce in the block until it finds a value that gives the necessary zero bits to the hash of the block. Once Proof-of-Work (POW) is successfully executed by the CPU, the block cannot be altered without running the entire process again. It also solves the challenge of determining the majority in voting. The majority in this system is based on one vote per CPU rather than one vote per IP address, thereby preventing any chances of foul play.
Counos is a decentralized network developed with the aim to provide users with an interacting trading platform where they can perform seamless transactions without the requirement of any third party financial institution. It has leveraged blockchain tech to offer users secure and reliable transactions. By eliminating the need of a third party and tackling the security issues involved in transacting online, Counos is all set in revolutionizing the digital trading domain .
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