Since its inception, Bitcoin has been positioned as a peer-to-peer payment system. However, its biggest problem is that its price volatility is too large, which makes it impossible to serve as a payment currency in specific application scenarios. The emergence of stablecoins can make up for Bitcoin's shortcomings.
PayFi and other stablecoin-based application scenarios have great potential to introduce Web2 users to Web3
In October 2024, Stripe acquired the stablecoin platform Bridge for $1.1 billion, setting a record for the largest acquisition in the crypto field, foreshadowing the imagination space created by the combination of stablecoins and payments. In addition, the European Union, Hong Kong, the United States, the United Kingdom, Singapore, etc. have also issued relevant policies on stablecoins, providing policy guarantees for the development of the market.
On-chain, as of December 5, 2024, the total issuance of stablecoins has approached $200 billion. Off-chain, according to World Bank data, only 76.2% of the global population aged 15 and above have bank accounts or mobile accounts, meaning that there are still 23.8% of the population (aged 15+) or about 2 billion people without bank accounts. This segment can access Web3 through applications like PayFi and become users of CEX, DeFi, and other applications, greatly advancing the process of Mass Adoption.
In 2021, the proportion of the global population with bank accounts was reported by the World Bank database.
In addition, in the field of cross-border payments, stablecoin cross-border payments also have great potential. According to the Bank for International Settlements (BIS), the global cross-border payment amount exceeded $29 trillion in 2022. Traditional infrastructure has high costs and slow speeds, while blockchain-based stablecoin cross-border payments are fast, low-cost, and can provide 24/7 service.
We believe that stablecoin payments will gradually occupy a large share of cross-border payments. If they occupy 50% of the share, it will expand the overall volume of stablecoin payments by 1.88 times; if they occupy 80%, it will triple the payment volume.
The non-US dollar stablecoin market also has considerable potential.
Recently, a report from Standard Chartered Bank also pointed out that non-US dollar stablecoins are gradually gaining attention, including in some economies with significant currency fluctuations, such as Turkey; developing stablecoins can reduce exchange rate volatility. At the same time, it can also reduce reliance on the US dollar. The BenFen ecosystem, in addition to issuing US dollar stablecoins, also issues stablecoins based on other currencies to occupy this market, such as BJPY and BINR.
The BenFen chain is a public chain more suitable for stablecoin application scenarios.
In stablecoin application scenarios, whether on-chain or off-chain, the primary requirement for infrastructure is security. Once there is a security risk, even the tallest building will collapse.
Compared to Ethereum and Tron, which use Solidity and Rust as application development languages, BenFen chain uses Move language, which offers higher security. In addition, as the infrastructure for stablecoins, it also requires higher performance, low Gas fees, and a robust consensus mechanism. BenFen chain has a throughput of tens of thousands of transactions per second and a latency of 0.5 seconds, making it more suitable for stablecoin application scenarios.
Safer: Uses a more secure programming language (Move language).
The BenFen chain is written in the Move language, which has a strict type system that can catch many common errors, such as type mismatches and null pointer references, at compile time, thereby improving code security. Additionally, Move manages assets through the concept of resources, which have strict lifecycle management that ensures resources can only be used and transferred as expected, preventing many security vulnerabilities, such as reentrancy attacks and resource leaks. In addition to these advantages, Move also has unique strengths in permission control, immutability, and formal verification, greatly enhancing its security.
High performance: Achieves sub-second latency and tens of thousands of transactions per second using an enhanced consensus mechanism.
BenFen chain innovatively adopts an enhanced consensus mechanism that combines DAG-based consensus and non-consensus methods to achieve low latency and high TPS while maintaining support for complex contracts, generating checkpoints, and cross-epoch reconfiguration of validator sets.
In terms of latency, the BenFen chain can achieve a latency of 0.5 seconds, much faster than Ethereum's 12 seconds, and also faster than Tron and Solana.
Comparison of latency across different chains.
In terms of TPS, the BenFen chain can achieve a transaction processing volume in the tens of thousands, which is also higher than Ethereum, Tron, and Solana.
Comparison of TPS across different chains.
Convenient login: BenFen chain provides users with a more convenient and secure login experience through zkLogin.
BenFen innovatively introduces the design of zkLogin, providing users with a way to generate addresses and sign transactions based on third-party authorization. Users can quickly log in using their Apple and Google accounts without needing mnemonic phrases, making it more convenient.
Login interface of BenFen chain's zkLogin.
Low Gas fees: Multiple stages reduce Gas costs.
The BenFen chain has optimized multiple stages of Gas fees to achieve low Gas costs. For example, each validator node submits their minimum processing quote for transactions in each epoch. The BenFen chain automatically sorts the submitted quotes and selects the price at the 2/3 position calculated based on the staking ratio as the reference price.
Additionally, when the Gas price submitted by the user is higher than the reference price, the difference is regarded as a tip paid to the network, which can give users higher priority. Different transactions require different amounts of computation time to process and execute.
Lastly, the storage mechanism of the BenFen chain provides a refund of storage fees when transactions delete previously stored objects.
The native stablecoin BUSD supports Gas fee payments and Staking.
Unlike the centralized issuance models of USDT and USDe, BUSD adopts a decentralized issuance approach and supports Gas fee payments and on-chain Staking, which other stablecoins do not have. At the same time, it is the native stablecoin of the BenFen chain, differentiating itself from USDT, DAI, and USDe. In addition to BUSD, BenFen will also issue stablecoins pegged to other major currencies based on oracles, such as BJPY, which is pegged to the Japanese Yen.
Issuance mechanism: 50% of BFC tokens are used to collateralize the issuance of BUSD.
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, which is not found in other public chains. This is akin to Ethereum permanently putting ETH tokens into the treasury to issue stablecoins. Once the user's wallet is connected, they can choose to pay BFC to mint the stablecoin BUSD, and upon exit, 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, exchange back to USDT/USDC at the same fixed ratio.
More stable: Various efficient BUSD price stabilization mechanisms.
BenFen has designed multiple price stabilization mechanisms, such as an elastic currency supply mechanism, which dynamically adjusts the currency supply based on market demand fluctuations 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. Additionally, there is an exchange rate regression mechanism that relies on price discrepancies of the same asset within the stablecoin treasury and the secondary market. When there is a significant price difference between the two, traders can buy the asset at a low price and sell it at a high price to achieve arbitrage profits. This not only provides traders with profit opportunities but also helps maintain market price stability, ensuring that the stablecoin value is close to its pegged value.
More focused: Focused on the expansion of stablecoin application scenarios.
Compared to other chains that focus on multiple ecosystems, BenFen is more dedicated to the ecological scenarios based on stablecoin applications.
BenFen Bridge is the native asset cross-chain bridge currently planned to be launched on the BenFen chain.
BenFen Card is a compliant payment solution integrated into our daily consumption.
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