Space Summary
The Twitter Space “The Future of Onchain Payments” hosted by SolanaFndn discussed various aspects of DeFi, mentioning Solana, PayFi, staking mechanisms, interest-bearing tokens, and the significance of user accessibility within the ecosystem. Key takeaways included the importance of sustainable blockchain networks, innovative product offerings, and comparisons with traditional financial platforms like PayPal. The conversation highlighted the value of user experience, continuous innovation, and the exciting developments shaping the evolving DeFi landscape. Topics such as the Future of Onchain Payments, token extensions, confidential transactions, transfer hooks, cross-border transactions, stablecoins, and compliance were also touched upon.
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Questions
How does Helios utilize staked tokens to improve their product?
Helios utilizes staked tokens to enhance their product without charging fees.
What benefits do users gain by staking with squads validators?
Users gain access to premium features by staking with squads validators.
What are subscription lists and their role in funding mechanisms?
Subscription lists are introduced as alternative funding methods aligned with DeFi principles.
How are interest-bearing tokens different from traditional tokens?
Interest-bearing tokens offer continuous growth and tokenization of interest through staking mechanisms.
What advantages do continuously compounded interest-bearing tokens offer?
Continuously compounded interest-bearing tokens provide higher returns and growth potential compared to traditional tokens.
How can Oracle tracks be used for real-time updates in DeFi?
Oracle tracks are integrated to provide real-time updates on interest rates and accumulation in DeFi platforms.
What is the significance of accessibility in accelerating blockchain adoption?
Accessibility plays a crucial role in reducing friction and onboarding more users into the blockchain ecosystem.
In what ways can user experience be enhanced within the DeFi ecosystem?
User experience can be improved by enhancing accessibility, reducing barriers, and providing seamless interactions within the DeFi ecosystem.
How does the approach of platforms like PayPal influence blockchain user onboarding?
Platforms like PayPal provide models for simplifying user experiences and accelerating adoption within the blockchain space.
What potential impact does improved accessibility have on blockchain ecosystem growth?
Improved accessibility can lead to increased user adoption, reduced friction, and overall growth of the blockchain ecosystem.
Highlights
Welcome and Introduction
Time: 00:06:37 – Setting the stage for the discussion on payments, blockchain, and fintech innovations.
Recent Developments in Payments
Time: 00:10:25 – Discussion on key recent news and developments in the payments space.
Importance of Memos in Transactions
Time: 00:14:09 – Exploration of the significance of transaction memos for peer-to-peer and cross-border payments.
Complexity of Cross-Border Payments
Time: 00:20:35 – Detailed discussion on the intricacies of the SWIFT protocol and blockchain’s potential in cross-border payments.
Organizational Buy-In Challenges
Time: 00:28:02 – Challenges faced in gaining buy-in from larger organizations for crypto solutions.
Helio’s Merchant Payment Success
Time: 00:31:16 – Sharing Helio’s achievements in merchant payment processing.
Stablecoins Integration
Time: 00:40:30 – Conversations around integrating stablecoins like PYUSD into existing financial systems.
Regulatory Hurdles
Time: 00:54:03 – Exploring the impact of regulatory frameworks on the adoption and implementation of new payment technologies.
Future of Fintech and Stablecoins
Time: 01:00:53 – Closing thoughts on the integration of fintech and stablecoins into traditional finance, with a call to action for builders and developers.
Key Takeaways
- Sustainable Blockchain Networks: Emphasis on sustainable blockchain networks and diverse product offerings.
- Helios and Staked Tokens: Helios uses staked tokens to enhance products without taking fees.
- Premium Features with Squads Validators: Staking with squads validators offers access to premium features.
- Subscription Lists in DeFi: Introduction of subscription lists and alternative funding methods aligned with DeFi principles.
- Interest-Bearing Tokenization: Introduction of interest-bearing tokenization and continuously compounded tokens.
- Real-Time Updates with Oracle Tracks: Integration of Oracle tracks for real-time updates and interest accumulation.
- User Accessibility: Focus on user accessibility to reduce friction in the ecosystem.
- Comparison with PayPal: Comparison with PayPal’s approach to accelerate user adoption in blockchain.
- Excitement in DeFi Landscape: Excitement about the evolving DeFi landscape and broader ecosystem developments.
Behind the Mic
Incremental Innovations in Blockchain
In the course of that journey, you will see on these epochs certain capabilities, which are enabled and then hopefully fill the market’s demand for those capabilities. We do take incremental steps towards that direction. So exactly how we did compression will hopefully ease people into being able to see how we can enable it on the local ledger. Things like recording consensus events versus voting and how those generally work in L1 and L2. So I think it’s really cool. And we’re trying to be very clear on those incremental steps towards shipping something that’s both innovative but significantly does improve the user experience.
Tokenizing Real-World Assets
Nathan, do you have thoughts on real-world assets and tokenizing real-world assets? Yeah. Happy to talk a little bit about that. Nathan’s head of partnerships and leads many of these conversations. So we’d love to hear more. Real World Assets has been an exciting area for us over the past year. It’s a big unlock for institutions to enable their clients to be able to participate in this ecosystem. With Pyth this year, we’ve been working on integrating with a number of institutional partners to get feed prices on chain for physical assets that are generally traded in the real world. That can be lending scenarios, pledging assets as collateral. So been working on the right partnerships, bringing the right types of assets. We want to learn more about what people are doing in the traditional sense and how we can apply those patterns in a web three exposure. There’s a lot of cool things coming in that direction. And then in addition to genuinely owning these assets, there’s also this concept of fund-based real-world asset indexes, where we’ve seen a lot of success with certain other ecosystems bringing on tokenized baskets of tokens. There’s a lot of cool ideas that people are actively working on and things that we’re supporting. So more to come in that space as well.
Payment Innovations in Web3
The last thing we wanted to touch on is payment and bringing in all kinds of distribution channels. Well, just on, like the only other thought is maybe the next one is we actually have a few speakers, but the next one might be validation nodes would be great to get to, but takes a bit of time. So we also have a lot of stuff that are like parallel trails. And we want to show you that Solana is very accessible in terms of gaming and payment. And there’s like so many different connection points that you can make to the blockchain and actually use it transactionally. But first, on payments in particular, we had a deep dive a little while ago around DLN and what’s enabled the use of all kinds of access to new types of liquidity. Web wallet got announced for Quest, an API called Sync. And then even attestation is a small example of something that’s enabling new capabilities around the web wallet with Quest. So kind of some quick thoughts there. It’s cool. And we’re definitely going to see more of these enabling to happen in parallel as you’re able to bring your app to new segments of customers. There’s actually a lot of things we’ve been thinking about doing in that space and how it’s very, very important to see what we call in the past epochs. But yeah, Phil, I don’t know if there’s anything you wanted to touch more on that we haven’t covered with DLN.
Future of Payments in DeFi
Super exciting year for DLN because we have been doing a lot in this space, making it easier for users to buy, sell, transact. Well, if you haven’t seen it, there’s a really cool video online showing the Solrise suite integrating with this tool E&O product that we’ve really been heads down working a lot within these constraints. But there’s like new relationships that are forming. And there’s a cool video with aspects of Google partnerships as well. So I encourage you to check that out. But we see a lot of excitement around payments in particular. People don’t always appreciate things like, hey, they’re getting compiled. There’s new exciting demos that are getting published regularly. It’s a super exciting year for DLN in terms of seeing that recognition. And, you know, Steph has a long history here of working through finance in general vaporware. But this stuff actually kind of ships and becomes unique in the ecosystem. There are really key ways we want to bring it down and kind of bring that ecosystem to the whole Web3 space. And it’s rare you get a chance to do it because otherwise, you know, you want to make sure these underlying requirements are very conducive to working through say encrypted data and other new aspects of bringing in payment channels.
Adoption and Engagement in Web3 Payments
What’s your take on payments and how do you think that fits in Web3? By that, I specifically mean the concept of DePIN. Like what payments could bring in that regard? I think the way we see this evolving is really interesting because it gives true scale and volume. You’re no longer thinking about just the decentralized order book or constrained volumes. You can think about the full Web3 ethos of having an ecosystem that has previously unlocked and enabled adoption, whether that’s on the in-person point-of-sale use or on the local developer fields. True payments are always going to need some alternation, but there’s real technology innovations we unlock to create compelling applications to ensure that the consumer experiences, which is great and could end up being exciting. I know a lot of teams historically wanted to play with payments in certain ways, but this is really cool.
Future Vision of DeFi and Payments
Say a little more about the adoption and how sure enabling it faster in an incremental approach unlocks more engagement. I think a short question, but it’s a big question because crypto ultimately should be mass adoption. But we’re also trying to make sure that the ecosystem can succeed and be very deliberate about ensuring there’s no friction in order to do effective attacks of developers and beyond. And to your point, step past PayPal, there’s a full ecosystem strictly enabled and I will finally stop talking. Thank you. Cool. One sort of sub-theme I think of the payments ecosystem that’s going to be important that you just elaborated on is thinking through subscription payments and things like that, where you want to have native rails and provide a crypto-only methodology for folks who want actual payments involved rather than abstracted. You know, Subcrit, a name of a startup driving these different tools and experiences and Solana payments back into payment rail. That’s cool that you’re unlocking that space for payments. What’s also quite important is what we’ve seen that’s faced the innovation over the past couple of years. And this kind of goes back to the ownership we’re seeing on the stake. So you can take this to native services like LiquidFi in Solana infra started providers that you’ll pay for XRP node and other kinds of things. So you’re starting to see solutions like Helios and everything else, it’s kind of cool. So you get, for example, if you want to have SQUAD as a validator making that, then that would mean essentially new payment rails, better liquidity, and it gets harder as things evolve. You can just watch the money. And then it will also extend the capabilities that our developers can have. So very excited to show you that around Liquid staking and how nodes are on-chain. You get on-chain liquidity and direct staking solutions, you don’t get that kind of slippage. And what’s cool about this is that every team gets an opportunity to simultaneously secure the network but offer different kinds of products. So, for example, Helios doesn’t take the fees from that stake, but they use it to help basically make their product better. We saw squads if you stake to the squad’s validator, you get access to squads pro, right? And so we’ll probably see in the long term subscription lists other ways of funding that hit that PayFi kind of like really interesting thing. I’m imagining that this will escape LSTs because that is a very native, I would say, crypto-native construct. Even just the interest-bearing tokenization, which is another extension in the token extension suite, allows you to create a continuously compounded interest-bearing token. You can have a track in Oracle, you can have it update literally every second if you want. And it does exactly what you expect, which sits in your wallet and number goes up over time as your own interest. So there’s a lot of cool capabilities there, both on the LSD side and the interest-bearing side that fit really well into that PayFi vision.
