According to the latest developments in the blockchain industry, we can see that PayFi, as an emerging concept, is driving the application of blockchain technology in payment and financial scenarios. In particular, the combination of JoyID and the Lightning Network, through a series of innovative designs, is gradually laying the foundational infrastructure for payment finance, with the ultimate goal of achieving seamless circulation of stablecoins both on-chain and off-chain, thereby building an efficient, low-cost, and secure global payment network.
Lightning Network: Off-chain payment technology superior to public chains
When discussing global payment infrastructure, the focus is often placed on high-performance public chains. However, despite the fast transaction speeds of high-performance public chains, their transaction volumes remain limited and cannot meet global payment demands. The Lightning Network, on the other hand, avoids the latency issues caused by blockchain synchronization through 'off-chain payment channels' technology. In the Lightning Network, transactions occur in independent payment channels, allowing for almost unlimited throughput. Since transactions do not rely on on-chain records, channels do not interfere with each other, enabling transaction speeds that can rival or exceed those of centralized systems.
In addition to efficiency, the Lightning Network also has advantages such as instant transaction finality and privacy protection, making it very suitable for micro and high-frequency payments. This design not only enables rapid settlement of off-chain payments but also reduces transaction costs, providing users with a better payment experience. Particularly when it involves large-scale, frequent transactions, the advantages of the Lightning Network are more pronounced than those of high-performance public chains. Additionally, the Lightning Network does not require additional tokens to pay gas fees, further lowering the usage threshold for users.
UTXO Stack: Introducing liquidity to the Lightning Network
Although the Lightning Network has significant advantages in scalability and speed, it still faces some challenges in terms of liquidity. UTXO Stack offers an effective solution. As the liquidity staking layer of the Lightning Network, UTXO Stack introduces more liquidity through a Decentralized Liquidity Staking Pool (DLSP) to ensure the smooth operation of the network. Users can stake various assets (such as BTC, CKB, and stablecoins) into the DLSP in exchange for corresponding liquidity tokens (such as lnBTC, lnCKB, and lnUSDI). Holders of these tokens can not only earn staking rewards but also continue to participate in other DeFi activities, increasing the liquidity and usability of their assets.
The design of UTXO Stack allows users to earn passive income from staked assets, directly promoting the liquidity of the Lightning Network. Moreover, through the distribution of this liquidity pool, routing nodes in the Lightning Network can obtain sufficient liquidity support to provide payment services more stably.
RGB++ and Fiber Network: Cross-chain payment support for stablecoins
RGB++ is a decentralized asset issuance protocol on the Bitcoin chain that allows users to issue and manage stablecoins. Through RGB++'s 'isomorphic binding' technology, 'dust satoshis' in the Bitcoin network are mapped onto RGB++ assets on the CKB chain, so that changes in asset status no longer depend on traditional cross-chain bridges, but are completed through the bridge-less cross-chain 'Leap' technology. This method not only enhances the security of cross-chain assets but also simplifies the cross-chain process.
Fiber Network is the Lightning Network implemented on Nervos CKB, combining with the Bitcoin Lightning Network to form a hybrid network supported by stablecoins. Users can issue stablecoins on the Bitcoin chain into the Fiber Network and circulate them within the Lightning Network, achieving seamless flow of stablecoins on-chain and off-chain. This innovation broadens the application prospects of stablecoins in the payment field and lays the foundation for achieving global payment finance.
JoyID: The entrance connecting users to the Lightning Network
As a multi-chain wallet for Bitcoin, JoyID introduces Passkey technology, supporting Bitcoin, the Lightning Network, and Fiber Network, and plans to gradually introduce stablecoin payment functionality. The design goal of JoyID is to enable users to easily participate in stablecoin payments on the Lightning Network, integrating the staking protocol of UTXO Stack to allow users to quickly stake BTC, CKB, and stablecoins, thereby supporting network liquidity. JoyID also simplifies the user experience, making liquidity staking and asset management more convenient. Currently, JoyID has over 800,000 users, and its continuously expanding feature set provides strong support for the development of global payment finance.
Conclusion
The combination of JoyID and the Lightning Network is building a new payment financial infrastructure. The Lightning Network has significant advantages in high throughput, privacy, and low costs, while UTXO Stack provides an effective solution for its liquidity issues. RGB++ and Fiber Network achieve seamless cross-chain circulation of stablecoins. JoyID serves as the entrance for users, bridging the gap between users and the Lightning Network, providing complete support for payment solutions in the PayFi era. This system will greatly promote the application of blockchain payments globally, making the vision of payment finance more realistic.
