Does Proof-of-Transaction have any potential for real useful application?
I mean, is the purpose of this algorithm just to be some kind of game where people send FLT to each other back and forth ?
whats stopping one individual from setting up several wallets and adresses and just send his own coins between them?
The way PoT is designed now seems to encourage this type of foul play
Of course it's useful. Just imagine merchants accepting payments in FLT and just by doing that, they get all their fees back as well as some extra coins on top. Now imagine you are a merchant that operates on a 5% profit margin and is paying 2% fees for credit cards. You can increase your profits by 40% for every buyer that chooses to pay you in FLT instead of CC. As a buyer you also get the chance to get some money back by hitting a PoT block when you make your purchase, so that is an extra incentive to choose FLT and not some other payment option.
As for gaming the system, it was already discussed and it's not possible to cheat as this disqualifies you from PoT. A lot of people have tried and so far nobody has succeeded.
PoT is nothing like a game to encourage people to send FLT to each other. It's designed as an economical stimulus for both buyers and sellers as well as an extra layer of block-chain security.