Blockchain is a highly narrative-dependent industry. In recent months, PayFi has emerged as a new concept that integrates payment and finance, becoming a highly focused narrative in the industry. Its full name is Payment Finance, referring to the use of blockchain technology to provide the necessary financial services for real-world payment scenarios.
In the current mainstream discussions, the underlying payment infrastructure of PayFi is often assumed to be a high-performance public chain (like Solana), but we believe that off-chain payment channel technology represented by the Lightning Network is more suitable for the role of PayFi payment infrastructure.
Lightning Network: Global Payment Infrastructure
The Lightning Network has a series of key advantages:
Instant Finality: Payments on the Lightning Network can settle within seconds, providing users with real-time finality, as transactions occur in off-chain channels.
Unlimited Throughput: The Lightning Network significantly enhances transaction throughput using payment channels. Theoretically, the TPS (Transactions Per Second) in these channels is unlimited, as payments between different channels do not interfere with each other.
Privacy Protection: Since payments are conducted in private off-chain payment channels, there is no need to broadcast on the mainnet, thus reducing the exposure of sensitive data and protecting user privacy.
Faster and Cheaper: Even compared to traditional Web2 payment systems, the Lightning Network still has advantages in transaction speed and fees.
In fact, apart from TPS, the Lightning Network also excels in the following aspects compared to on-chain payments based on high-performance public chains:
1. The Lightning Network does not require a separate token to pay gas fees.
2. The Lightning Network is very suitable for small and high-frequency payments.
3. The Lightning Network offers instant transaction finality.
4. The Lightning Network operates off-chain, providing better privacy protection.
5. The Lightning Network operates off-chain, providing better privacy protection.
6. The Lightning Network complies with regulatory frameworks and supports the expansion of more user scenarios.
JoyID: Wallet entry for stablecoin payments
JoyID is the first Bitcoin multi-chain wallet integrated with Passkey technology. In addition to supporting Bitcoin and other public chains, it will support the Lightning Network and Fiber Network, and will introduce stablecoin payment functions, aiming to become the wallet entry for stablecoin payments through the Lightning Network and Fiber Network. Meanwhile, JoyID will integrate the staking protocol of UTXO Stack, allowing users to easily stake BTC, CKB, and stablecoins into DLSP to enhance the liquidity of the Lightning Network. Thanks to JoyID's user-friendly experience, the staking process will become simple and easy.
