Since 2009, cryptocurrency technology has continued to evolve, its wide range of applications is impressive, and the most classic vision of Bitcoin payments has gradually receded from the stage of history. However, at this year's EthCC (Ethereum Community Conference), the President of the Solana Foundation brought the topic back to "payment" to promote the simplest but most important use case. She introduced the concept of PayFi.
What is PayFi?
PayFi was born out of fulfilling the original vision of cryptocurrency. According to Lily Liu’s definition, PayFi refers to programmable money and new financial initiatives built on top of the settlement layer, while being able to process payments autonomously. She believes that PayFi is slightly different from DeFi. DeFi is mostly an act of buying, selling and exchanging tokens, but the vast majority of financial behavior is actually the purchase of goods and services. PayFi is not a transaction, focusing on settlement time, it is time value of money.
PayFi application scenarios
New technologies create new markets. By supporting the "Buy now, Pay Never" scenario, PayFi combines the capabilities of on-chain finance with real-time settlement, allowing you to generate real-time profits from on-chain finance that are enough to pay for real-time payments. Consumption. She gave an example of a retail application scenario where a user puts $50 on the chain to earn interest. The interest can be settled and paid in real time, and can be used to buy a cup of "free" coffee.
It can also support the monetization of creations based on the progress of goal achievement (for example, when a Youtuber can reach 1 million views, he will gradually receive advertising profits), provide bill financing, manage payment processing risks, and cultivate global private credit on Solana pool. Lily Liu believes that PayFi will surpass DeFi in the future and open up a new financial trend.
Solana 和 PayFi
Lily Liu mentioned that Solana is different from other blockchains because of its high performance, always showing fast transaction speed and low cost, and having advantages in both capital mobility and talent mobility. Clearly, Solana is a strong candidate to realize PayFi’s vision.
Three elements for PayFi’s success in a blockchain
Lily Liu proposed three key conditions for blockchain success: fast and low-cost transactions, a broad user base, and a strong developer community. She believes that Solana is currently the only ecosystem that fully meets these three elements.
The future of PayFi and Solana
At the end of the speech, Lily Liu shared the use cases of various financial applications in the Solana platform, including supply chain finance, payday loans, credit cards, corporate credit, inter-bank repurchase market and insurance market, etc. These use cases fully highlight the huge potential of Solana combined with PayFi to transform the traditional financial system in the future.
This article EthCC｜The payment narrative returns! Chairman of Solana Foundation: PayFi will rewrite the financial industry with "buy now, don't pay" first appeared on Chain News ABMedia.
