The blockchain industry highly relies on 'narratives', and PayFi, as a new concept that integrates payment and finance, has received widespread attention. It aims to use blockchain technology to provide financial services for real-world payment scenarios.
In terms of payment infrastructure for PayFi, although some believe that high-performance public chains (such as Solana) can take on this role, the Lightning Network has distinct advantages. The Lightning Network has several key advantages: first, instant finality, where payments in off-chain channels can be settled in seconds, providing users with real-time transaction finality; second, unlimited throughput, as it utilizes payment channels to enhance transaction throughput, with payments across different channels not interfering with each other, theoretically allowing for infinite transactions per second (TPS); third, privacy protection, as payments occur in private off-chain channels without the need to broadcast on the mainnet, reducing exposure of sensitive data; fourth, speed and cost advantages, where the Lightning Network outperforms traditional Web2 payment systems in terms of transaction speed and fees. In contrast, high-performance public chains, as on-chain solutions, have a TPS limit due to the need for multiple nodes to synchronize and confirm transactions, inevitably causing delays, which is why they do not match the transaction processing speed of the Lightning Network. Additionally, the Lightning Network does not require a separate token to pay gas fees, making it suitable for small and high-frequency payments, while also aligning with regulatory frameworks, supporting more user scenarios. However, the Lightning Network currently faces issues of liquidity shortages and lack of stablecoin support.
To address the liquidity issues of the Lightning Network, UTXO Stack plays an important role as its liquidity staking layer. It utilizes a Decentralized Liquidity Staking Pool (DLSP), where users stake various assets (such as ccBTC, stablecoins, CKB, etc.) into the DLSP. These assets are leased to routing nodes in the Lightning Network, which charge transaction fees, with a majority of the fee revenue flowing back to the DLSP as dividends for liquidity providers. The staked assets generate liquidity tokens (such as lnBTC, lnCKB, and lnUSDI) at a 1:1 ratio, with the minting and burning of these tokens controlled by smart contracts. Users holding liquidity tokens can not only automatically earn passive income but also retain the liquidity of their assets, allowing them to continue participating in DeFi, re-staking, and other economic activities, thus fully unlocking the liquidity potential of their assets.#CKB助力比特币生态
