PayPal has been a huge innovation in the payment processing industry. The financial idea of ​​Peter Thiel, Max Lifchin, and eventually Elon Musk was to offer instant payments between customers, businesses, and more when using the Internet.

Solana (SOL) Pay is considered by many to be the next innovation in payment processing that simplifies payments with non-fungible tokens (NFT) and Web3 in mind. Some go so far as to connect to Solana’s new payment protocol for Visa or PayPal Web3. This post will talk about Solana Pay and how it works so you can decide if the project is all it needs.

But first, it is important to understand Solana before entering the Solana Pay digital payment platform.

Related Topics: What is Web3: A Beginner’s Guide to the Internet of the Decentralized Future

What is Solana?
Solana was founded in 2017 by Anatoly Yakovenko, a software engineer with experience at Dropbox and other large technology companies.

Yakovenko believes that while other blockchains are efficient, or at least aim for efficiency, many are oblivious to time. Instead of each block relying on a standard clock, each block runs in the local time of the current node.

Why is this a problem? Without uniform hours, the transaction timestamps would be different for each block, and confirmation time is another factor that all nodes must check. The more factors a node has to check, the slower the transaction time.

In Solana, all nodes run at the same clock, eliminating one validation factor and increasing the network speed as a result. Yakovenko calls the consensus method Proof of History (PoH), a modified version of Proof of Stake (PoS) that takes time into account for verification purposes.

Verification works in the same way as Proof of Stake in Solana’s case. Solana uses time only as a historical record of evidence as well as a method of proving proportionality. As a result, Solana can process an average of 65,000 transactions per second with minimal fees.

Solana is also a smart decentralized finance (DeFi) platform that competes with Ethereum (ETH). Both platforms offer all kinds of decentralized DApps for funding, and some of them even with their own cryptocurrency. Instead of the ether at the center of it all, Solana’s token is SOL.

SOL is used for trading on the Solana network, for governance purposes, and is offered as a reward to auditors. In addition, Solana has its own decentralized exchanges for trading various tokens built on top of the platform. Each DApp built on Solana is guaranteed to have its own SOL-compatible token, and on-chain decentralized exchanges provide an affordable way to purchase these tokens.

Now that Solana’s PoH consensus allows tens of thousands of transactions per second to be processed for free, Solana Labs is creating Solana Pay to bring this transaction power to the masses.

Solana Bay’s story
While Solana Labs was an important part of the Solana Pay development process, other companies were also involved. Cher said Circle, Checkout.com, Citcon, Phantom, FTX and Slope helped lay the foundation for Solana Pay, the digital payment platform.

According to research by Visa, Team Circle stated that “73% of businesses believe that accepting digital payments is key to growth in 2022.” The same study found that 59% of these companies “are already using or plan to use digital payments only within the next two years.” These stats were part of the foundation for Solana Pay as Solana Labs, Circle and their other partners want to be prepared for these early adopters. Cher joined Solare Labs in 2021 to work with Solana Pay.

How does Solana Pei work?
The digital payment platform Solana Pay provides businesses and customers with instant, free and allegedly environmentally friendly transactions using the power of the Solana blockchain network. The network claims to support 65,000 transactions per second and provides companies with an easy-to-implement software development toolkit for product integration.

Developers who build DApps on Solana can integrate Solana Pay to facilitate transactions, just as traditional retailers can do if they have a Solana wallet. Because of this accessibility, many people compare Solana to PayPal and say that Solana can do with cryptocurrency as PayPal did with traditional online payments.

Related Topics: What is Solana (SOL) and How Does It Work?

Benefits of Solana Pei
Sure, Bitcoin (BTC), ETH and other cryptocurrencies claim to offer near-instant cryptocurrencies, but these networks (especially Ethereum) are very expensive and not as instant as they might claim.

Source: CoinTelegraph

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