@Huma Finance 🟣 #HunaFinance What is the Payfi stack?
Huma's Payfi stack is a technological framework designed to simplify blockchain-based payment financing and to overcome the limitations of Tradfi systems by creating an open, modular stack that transforms payment financing.
Just as the internet changed communication and information sharing, Payfi aims to reshape how money moves by enabling real-time transactions, programmable payments, and accessible credit. The Payfi stack that powers it is inspired by the Internet's OSI model.
Over the past 40 years, the OSI model has laid the groundwork for consistent, interoperable standards that have allowed for exponential growth in technology. While the OSI model helped manage the data internet, we are now entering an era defined by the currency internet.
An open Payfi stack inspired by the OSI model, available for use and development worldwide.
Like the OSI model, the Payfi stack is designed to be an open, modular system that provides a universal language and structure for building financial applications on the blockchain. Its goal is to ensure that future innovations, such as real-time payments, decentralized lending, or asset tokenization, can be seamlessly integrated into this ecosystem.
The OSI model standardized how different systems communicate over the internet. It consists of seven layers, each providing specific functions - from physical data transmission to applications such as web browsers. This modular approach ensures that any two systems, regardless of their origin or platform, can communicate and exchange information seamlessly.
Here is a quick overview of the seven layers of the OSI model:
Physical Layer: Manages the physical hardware that transmits raw data (such as cables).
Data Link Layer: Ensures data transfer between adjacent network nodes.
Network Layer: Handles data routing across networks.
Transport Layer: Manages reliable data transfer between devices.
Session Layer: Establishes and maintains communication sessions.
Presentation Layer: Ensures data is presented in a readable format (e.g., encryption/decryption).
Application Layer: Here, users interact with applications (e.g., web browsers).
Each layer in the OSI model builds on the layer below it, ensuring that systems can cooperate without needing to understand the complexities of the entire communication process. $HUMA