Since Bitcoin's inception, it has been positioned as a peer-to-peer payment system. However, its biggest problem is its high price volatility, which prevents it from serving as a payment currency in specific application scenarios. The emergence of stablecoins just compensates for Bitcoin's shortcomings.
Applications based on stablecoins like PayFi have enormous potential to bring Web2 users into Web3.
In October 2024, Stripe acquired the stablecoin platform Bridge for $1.1 billion, marking the largest acquisition in the crypto field, indicating the potential generated by the combination of stablecoins and payments. Moreover, the EU, Hong Kong, the US, the UK, Singapore, etc., have also introduced policies related to stablecoins to provide policy guarantees for market development.
On-chain portion, 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 has bank accounts or mobile accounts, which means that there are still 23.8% of the population (15+) or about 2 billion people who do not have bank accounts. This group can enter Web3 through applications like PayFi, becoming users of CEX, DeFi, etc., greatly advancing the process of Mass Adoption.
In 2021, the global population with bank accounts accounted for Source: World Bank Database.
Additionally, there is great potential for stablecoin cross-border payments. According to the Bank for International Settlements (BIS), the global cross-border payment amount exceeded $29 trillion in 2022. Traditional infrastructure is expensive and slow, while blockchain-based stablecoin cross-border payments are fast, inexpensive, and can provide 24/7 service.
We believe that stablecoin payments will gradually occupy a large share of cross-border payments. If it occupies 50% of the share, it will expand the total size of stablecoin payments by 1.88 times; if it occupies 80%, it will expand the payment size by 3 times.
The non-USD stablecoin market also holds significant potential.
Recently, a report from Standard Chartered Bank also pointed out that non-USD 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, in addition to issuing USD stablecoins, also issues stablecoins based on other currencies to capture this market, such as BJPY and BINR.
The BenFen chain is a public chain more suitable for stablecoin application scenarios.
In stablecoin-based application scenarios, whether on-chain or off-chain, the primary requirement for infrastructure is security. Once security risks arise, even the tallest buildings will collapse.
Compared to Ethereum and Tron using Solidity and Rust as application development languages, the application development language of the BenFen chain is Move, which offers higher security. Moreover, as a stablecoin infrastructure, it also requires higher performance, low Gas fees, and a robust consensus mechanism. The BenFen chain achieves tens of thousands of transactions per second and a latency of 0.5s, 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 features a strict type system that can catch many common errors at compile time, such as type mismatches and null pointer references, thereby enhancing code security. Additionally, Move manages assets through the concept of resources, which have strict lifecycle management, ensuring that resources can only be used and transferred in expected ways, avoiding many security vulnerabilities such as reentrancy attacks and resource leaks. Beyond these advantages, Move has unique advantages in permission control, immutability, formal verification, etc., significantly enhancing its security.
High performance: Achieves sub-second latency and tens of thousands of transactions per second using an enhanced consensus mechanism.
The BenFen chain innovatively adopts an enhanced consensus mechanism that combines DAG-based consensus with a no-consensus method, achieving low latency and high TPS while also supporting complex contracts, generating checkpoints, and reconfiguring the validator set across epochs.
In terms of latency, the BenFen chain can achieve a latency of 0.5s, far 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 tens of thousands of transaction processing volumes, also surpassing Ethereum, Tron, and Solana.
Comparison of TPS across different chains.
Convenient login: The 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 method for address generation and transaction signing based on third-party authorization. Users can quickly log in using their Apple or Google accounts without needing a mnemonic, making it more convenient and faster.
The zkLogin login interface of the BenFen chain.
Low Gas fees: Multiple processes reduce Gas costs.
The BenFen chain has optimized multiple processes for Gas fees to achieve low Gas costs. For example, each validating node submits their minimum transaction processing quotes at each epoch. The BenFen chain automatically sorts according to the quotes submitted by each validating node and selects the price at the 2/3 position calculated by 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 considered a tip paid to the network, and paying a tip can grant the user a higher priority. Different transactions require different amounts of computation time for processing and execution.
Finally, the storage mechanism of the BenFen chain provides a storage fee refund when deleting 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 method and supports Gas fee payments and on-chain Staking, which other stablecoins do not possess. At the same time, it is also a built-in stablecoin of this chain, differentiating itself from USDT, DAI, and USDe. In addition to BUSD, this chain will also issue stablecoins pegged to other major currencies based on oracles, such as BJPY pegged to the Japanese Yen.
Issuance mechanism: 50% of BFC tokens are put up as collateral to issue BUSD.
At the initialization of the public chain, 50% of the BFC will be permanently used as collateral for the issued stablecoins, greatly enhancing the system's security and stability, which is not found in other public chains. For instance, it is like Ethereum permanently placing ETH tokens in the treasury to issue stablecoins. After users connect their wallets, they can choose to pay BFC to mint stablecoin BUSD, and when exiting, they can burn 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, also exchange at a fixed ratio of 1:1 back to USDT/USDC.
More stable: Multiple efficient BUSD price stabilization mechanisms.
This chain has designed various price stabilization mechanisms, such as an elastic currency supply mechanism that dynamically adjusts the currency supply based on market demand fluctuations to maintain price stability. The stablecoin protocol automatically executes through specific algorithms and trigger conditions to dynamically increase or decrease the circulating amount of BUSD. There is also an exchange rate regression mechanism that relies on price differences between the stablecoin treasury and the secondary market for the same asset. When there is a significant price difference, traders can buy assets at a low price and sell them at a high price for arbitrage profits. This not only provides traders with profit opportunities but also helps maintain market price stability, ensuring that the stablecoin's value is close to its pegged value.
More focused: Concentrating on expanding stablecoin application scenarios.
Compared to other chains focusing on multiple ecosystems, this one is more dedicated to stablecoin-based application scenarios.
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