Since the inception of Bitcoin, it has been positioned as a peer-to-peer payment system; however, its biggest issue is high price volatility, which prevents it from serving as a payment currency in specific application scenarios, while the emergence of stablecoins precisely compensates for Bitcoin's shortcomings.
Explosive growth of stablecoin application scenarios
In October 2024, Stripe acquired the stablecoin platform Bridge for $1.1 billion, marking the largest acquisition in the crypto space, signaling the imaginative space created by the combination of stablecoins and payments. Additionally, countries like the EU, Hong Kong, the US, the UK, and Singapore have also introduced relevant policies for stablecoins, providing policy support for market development. As of December 16, 2024, the total issuance of stablecoins has exceeded $200 billion, and according to VanEck's forecast for 2025, the global daily settlement volume of stablecoins is expected to reach an astonishing $300 billion, with the potential of stablecoin-based applications like PayFi growing daily.
The future expected market size of stablecoin payments
According to the World Bank, only 76.2% of the global population aged 15 and older have bank accounts or mobile accounts, which means that there are still 23.8% of the population (aged 15+)—approximately 2 billion people—without bank accounts. This segment can enter Web3 through applications like PayFi, becoming users of CEX, DeFi, and other applications, significantly advancing the process of Mass Adoption.
2021 Global Population with Bank Accounts: Source: World Bank Database
Furthermore, in terms of cross-border payments, there is also great potential for stablecoin cross-border payments. According to the Bank for International Settlements (BIS), global cross-border payment amounts exceeded $29 trillion in 2022. Traditional infrastructure is costly and slow, while blockchain-based stablecoin cross-border payments are fast and low-cost, providing 24/7 service.
We believe that stablecoin payments will gradually occupy a significant share of cross-border payments. If it captures 50% of the market, it will increase the total volume of stablecoin payments by 1.88 times; if it captures 80%, it will triple the payment volume.
There is also great potential in the non-dollar stablecoin market
Recently, a report from Standard Chartered Bank pointed out that non-dollar stablecoins are gradually gaining attention, including some economies with significant foreign exchange volatility, such as Turkey, where developing stablecoins can reduce exchange rate fluctuations. At the same time, it can also reduce dependence on the US dollar. The BenFen ecosystem issues stablecoins in addition to the US dollar stablecoin, aiming to capture this market, such as BJPY and BINR.
The first decentralized native stablecoin that can directly pay Gas fees
BenFen Chain mints dollar stablecoins like BUSD and other multi-currency stablecoins through a brand new decentralized global collateral method, granting stablecoin holders the identity of 'first citizens', meaning the native stablecoin BUSD supports Gas fee payments, without the need to hold the chain's native token for transfers or transactions like other public chains, truly achieving and satisfying the traditional payment transfer habits of most web2 users in web3, making it smoother and more convenient. In contrast to the centralized issuance model of stablecoins like USDT widely adopted in the current market, BUSD uses a decentralized issuance approach, differentiating itself from USDT, DAI, and USDe. Besides BUSD, BenFen will also issue stablecoins pegged to other major currencies based on oracles, such as BJPY pegged to the Japanese yen, and BINR among others.
Issuance mechanism: 50% treasury asset collateral
At the initialization of the public chain, BenFen will permanently use 50% of BFC as collateral for issued stablecoins, greatly enhancing the system's security and stability, something that other public chains lack. For example, this is like Ethereum permanently placing ETH tokens into the treasury to issue stablecoins. Once users connect their wallets, they can choose to pay BFC to mint the stablecoin BUSD, and upon exiting, they can destroy the stablecoin to redeem BFC. Off-chain users can also exchange their USDT/USDC for BUSD at a fixed ratio of 1:1, and when exiting, they can exchange back to USDT/USDC at the same ratio.
Stability: Various efficient BUSD price stabilization mechanisms
BenFen has designed various price stabilization mechanisms, such as an elastic money supply mechanism that dynamically adjusts the currency supply based on fluctuations in market demand to maintain price stability. The BenFen stablecoin protocol automatically executes through specific algorithms and triggering conditions to dynamically increase or decrease the circulating amount of BUSD. There is also an exchange rate reversion mechanism that relies on the price differences between the assets in the stablecoin treasury and those in the secondary market. When there is a significant price difference, traders can buy assets at a low price and sell them at a high price to realize arbitrage profits. This not only provides profit opportunities for traders but also helps maintain market price stability, ensuring that the stablecoin's value is close to its pegged value.
The first public chain born specifically for stablecoin payment scenarios
In terms of technical performance, compared to existing commonly used stablecoin transfer public chains, BenFen Chain also has prominent advantages in various aspects, being the first public chain specifically born for stablecoin payment scenarios: besides fully integrated decentralized stablecoins, it also offers better security, higher performance, lower Gas fees, and a robust consensus mechanism.
Safer: Using a more secure programming language (Move language)
BenFen Chain is written in Move language, which has a strict type system that can catch many common errors at compile time, such as type mismatches and null pointer references, thereby enhancing code safety. Additionally, Move manages assets through the concept of resources, which have strict lifecycle management, ensuring that resources can only be used and transferred as intended, avoiding many security vulnerabilities like reentrancy attacks and resource leaks. Beyond these advantages, Move has unique strengths in permission control, immutability, and formal verification, greatly enhancing its safety.
Higher performance: Achieving sub-second latency and tens of thousands of transactions per second through an enhanced consensus mechanism
BenFen Chain innovatively adopts an enhanced consensus mechanism that combines DAG-based consensus with non-consensus methods, achieving low latency and high TPS while still supporting complex contracts, generating checkpoints, and reconfiguring the validator set across epochs.
In terms of latency, BenFen Chain can achieve a latency of 0.5 seconds, far faster than Ethereum's 12 seconds, and faster than Tron and Solana.
Latency comparison among various chains
In terms of TPS, BenFen Chain can handle tens of thousands of transactions, exceeding Ethereum, Tron, and Solana.
TPS comparison among various chains
More convenient login: BenFen Chain provides users with a more convenient and secure login experience through zkLogin
BenFen innovatively introduces zkLogin design, providing users with a method for address generation and transaction signing based on third-party authorization. Users can quickly log in using their Apple or Google accounts without the need for mnemonic phrases, making it more convenient.
BenFen Chain's zkLogin login interface
Lower Gas fees: Reducing Gas costs across multiple aspects
BenFen Chain has optimized multiple aspects of Gas fees to achieve low Gas costs. For example, each validator node submits their minimum quote for processing transactions in each epoch. BenFen Chain will automatically sort according to the quotes submitted by each validator node and select the price at the 2/3 position calculated based on the staking ratio as the reference price.
Additionally, when the Gas price submitted by users exceeds the reference price, the difference is considered a tip paid to the network, which can give users a higher priority. Different transactions require different amounts of computation time for processing and execution.
Finally, BenFen Chain's storage mechanism provides a refund of storage fees when deleting previously stored objects.
The first public chain focused solely on expanding stablecoin application scenarios
Compared to other chains that focus on multiple ecosystems, BenFen is more dedicated to stablecoin-based application scenarios.
BenFen Bridge is a cross-chain bridge for native assets currently planned to be launched on BenFen Chain in the near future
BenFen Card is a compliant payment solution integrated into our daily consumption
BenFen Pay is a comprehensive payment ecosystem that enables direct cryptocurrency payments, seamless exchanges between digital currencies and fiat currencies, as well as diversified functions like on-chain secured payments.
BenFen KYC is an on-chain identity authentication and verification system that aggregates certification results from various KYC providers, allowing for one-click queries of multi-platform KYC records and peer-to-peer identity information verification channels.
BenFen C2C is an innovative decentralized escrow trading platform
Furthermore, we will collaborate with partners to develop various ecological applications for users, promoting the ecological development and prosperity of BenFen Chain and providing greater value to users.
