© Reuters. Solana: the payment network of the future?
(CRYPTO:SOL) is a highly functional open source project that provides permissionless blockchain technology to offer decentralized financial solutions. This “killer” has introduced a new peer-to-peer decentralized payment platform named Solana Pay, with the intention of developing its ecosystem.
As a result, many crypto enthusiasts are now wondering if Solana could be the payment network of the future. Let’s take a closer look.
A New Way to Pay Solana Pay offers merchants a simple framework to transact directly with consumers without an intermediary. The bounty ? These transactions can take place for, in most cases, a fraction of a penny.
Solana Pay allows merchants to accept and transfer any amount of blockchain-enabled stablecoins anytime, anywhere.
Solana Pay stands out from the competition because its decentralized payment structure is extremely fast. That’s because it leverages the Solana blockchain, which offers “near-instantaneous” settlement of 400 milliseconds, scalability of 65,000 TPS, and ultra-low fees of $0.00025 for each transaction. On the other hand, only manages to process 7 TPS, and it is only 13 TPS for Ethereum.
In addition, Solana Pay has another competitive advantage: its ease of use. It’s as simple as activating a barcode at the point of sale or on a merchant’s site. So, for example, a merchant will be able to initiate a peer-to-peer connection with many cryptocurrency wallet clients using the Solana Pay SDK. These customers can pay in stablecoins or other cryptos compatible with the Solana blockchain.
Cash is king, and Solana knows that Without a doubt, cash is king. And it should be noted that Solana Pay is more like cash. Think of it as the digital version of a cash payment. In terms of design, it’s not really the equivalent of paying by credit card.
This is indeed attractive for merchants as they will avoid chargeback fees or fees from major credit card intermediaries. Additionally, it should be noted that Solana Pay transactions are not reversible in nature.
That said, many consumers and merchants can seek protection. Smart contracts provide the ability to hold funds in escrow. This is specifically for big ticket items like a cruise ticket.
Solana Pay offers rich data specifications that are not available when a token is sent over the network. This includes amount, destination, currency, descriptive text fields and standardized transaction identifiers. This means that a merchant can confirm the completion of a transaction. However, the actual details of the transaction are not public on the chain. This includes information such as what was purchased or who paid.
Overall, the recent Solana Pay announcement is something I think is worth getting excited about. For investors optimistic that crypto is the future of finance, Solana appears to be a leader in this regard. As a result, those looking for a mega-cap token to invest in may want to consider Solana during this recent drop.
Dumb Contributor Chris MacDonald owns Ethereum and Solana. The Motley Fool owns and recommends Bitcoin and Ethereum.
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