Since its inception, Bitcoin has been positioned as a peer-to-peer payment system. However, its biggest problem is the high price volatility, which has prevented it from serving as a payment currency in specific application scenarios. The emergence of stablecoins can precisely compensate for the shortcomings of Bitcoin.
Applications based on stablecoins, such as PayFi, have huge potential and will bring Web2 users to Web3
In October 2024, Stripe acquired the stablecoin platform Bridge for $1.1 billion, the largest acquisition in the crypto field, indicating the vast potential of the combination of stablecoins and payments. Additionally, the EU, Hong Kong, the US, the UK, Singapore, and others have introduced stablecoin-related policies, providing policy support for the development of the market.
On-chain, as of December 5, 2024, the total issuance of stablecoins has reached nearly $200 billion. Off-chain, according to World Bank data, the percentage of the global population aged 15 and above with a bank or mobile money account is only 76.2%, meaning that there are still 23.8% of the population (15+), about 2 billion people, who do not have a bank account. This population can access Web3 through applications like PayFi and become users of CEX, DeFi, and other applications, greatly advancing the process of Mass Adoption.
Global population with a bank account in 2021 Source: World Bank Database
Additionally, in the area of cross-border payments, stablecoin-based cross-border payments also have great potential. According to the Bank for International Settlements (BIS), the global cross-border payment volume exceeded $29 trillion in 2022. Traditional infrastructure is expensive and slow, while blockchain-based stablecoin cross-border payments are fast, low-cost, and can provide 24/7 service.
We believe that stablecoin payments will gradually occupy a larger share of cross-border payments. If they capture 50% of the market, it will expand the overall stablecoin payment volume by 1.88 times; if they capture 80%, it will expand the payment volume by 3 times.
The non-USD stablecoin market also has significant potential
Recently, a report by Standard Chartered Bank also pointed out that non-USD stablecoins are also gradually gaining attention, including some economies with relatively high foreign exchange volatility, such as Turkey, where developing stablecoins can reduce exchange rate fluctuations. At the same time, it can also reduce dependence on the US dollar. In addition to issuing a USD stablecoin, the BenFen ecosystem also issues stablecoins pegged to other currencies to occupy this market, such as BJPY and BINR.
BenFen Chain is more suitable for stablecoin application scenarios
In stablecoin-based application scenarios, whether on-chain or off-chain, the primary requirement for the infrastructure is security. If there are security risks, even the highest tower will collapse.
Compared to Ethereum and TRON, which use Solidity and Rust as application development languages, BenFen Chain's application development language is Move, which has higher security. Additionally, as the infrastructure for stablecoins, it also requires higher performance, lower gas fees, and a robust consensus mechanism. BenFen Chain has a throughput of tens of thousands of transactions per second and a latency of 0.5 seconds, making it more suitable for stablecoin application scenarios.
More Secure: Adopting a Safer Programming Language (Move)
BenFen Chain uses the Move language to write its code. Move has a strict type system that can capture many common errors, such as type mismatches and null pointer references, at compile-time, thereby improving the security of the code. Additionally, Move manages assets through the concept of resources, which have a strict lifecycle management, ensuring that resources are used and transferred only as intended, avoiding many security vulnerabilities such as reentrancy attacks and resource leaks. Besides these advantages, Move also has unique advantages in terms of access control, immutability, and formal verification, significantly enhancing its security.
High Performance: Adopting an Enhanced Consensus Mechanism to Achieve Sub-Second Latency and Tens of Thousands of TPS
BenFen Chain innovatively adopts an enhanced consensus mechanism, combining DAG-based consensus and non-consensus methods, to achieve low latency and high TPS, while still supporting complex contracts, generating checkpoints, and reconfiguring the validator set across epochs.
In terms of latency, BenFen Chain can achieve a latency of 0.5 seconds, far faster than Ethereum's 12 seconds, and also faster than TRON and Solana.
Latency comparison of different chains
In terms of TPS, BenFen Chain can achieve tens of thousands of transactions per second, also higher than Ethereum, TRON, and Solana.
TPS comparison of different chains
Convenient Login: BenFen Chain Provides a More Convenient and Secure Login Experience through zkLogin
BenFen innovatively introduces the design of zkLogin, providing users with a third-party authorization-based address generation and transaction signing method. Users can quickly log in through their Apple or Google accounts, without the need for a seed phrase, making the process more convenient and faster.
BenFen Chain's zkLogin interface
Low Gas Fees: Reducing Gas Fees in Multiple Aspects
BenFen Chain has optimized gas fees in multiple aspects to achieve low gas fees. For example, each validator node submits their minimum bid to process transactions in each epoch. BenFen Chain will automatically sort the bids and select the price at the 2/3 position, calculated based on the staking ratio, as the reference price.
Additionally, when the user's gas price is higher than the reference price, the difference is considered a tip paid to the network, and paying a tip can give the user a higher priority. Different transactions require different amounts of computation time to process and execute.
Finally, BenFen Chain's storage mechanism provides a storage fee refund when transactions delete previously stored objects.
Native Stablecoin BUSD Supports Gas Fee Payment and Staking
Compared to the centralized issuance model of USDT and USDe, BUSD is issued in a decentralized manner and supports the payment of gas fees and on-chain Staking, which other stablecoins do not have. It is also the native stablecoin of BenFen Chain, differentiating it from USDT, DAI, and USDe. In addition to BUSD, BenFen will also issue other stablecoins pegged to major currencies based on oracles, such as BJPY pegged to the Japanese yen.
Issuance Mechanism: Allocating 50% of BFC Tokens for BUSD Collateral
During the initial launch of the public chain, BenFen will permanently allocate 50% of the BFC tokens to the treasury as collateral for the issued stablecoin, which can greatly enhance the system's security and stability, something that other public chains do not have. For example, this is similar to Ethereum permanently locking ETH tokens in the treasury to issue stablecoins. After a user's wallet is connected, they can choose to pay BFC to mint the BUSD stablecoin, and when they want to exit, they can burn the stablecoin to redeem the BFC. Off-chain users can also exchange their USDT/USDC 1:1 for BUSD, and when they want to withdraw, they can exchange BUSD 1:1 for USDT/USDC.
More Stable: Multiple Efficient BUSD Price Stabilization Mechanisms
This project has designed multiple price stabilization mechanisms, such as the elastic currency supply mechanism, which dynamically adjusts the currency supply based on market demand fluctuations to maintain price stability. The stable coin protocol of this project automatically executes through specific algorithms and trigger conditions to dynamically increase or decrease the circulating BUSD. Another example is the exchange rate reversion mechanism, which relies on the price difference between the same assets in the stable coin treasury and the secondary market. When there is a significant price difference between the two, traders can profit by buying the asset at a low price and selling it at a high price. This not only provides profit opportunities for traders, but also helps maintain market price stability and ensure the stable coin value is close to its pegged value.
More Focused: Focusing on Expanding Stable Coin Application Scenarios
Compared to other chains that focus on multiple ecosystems, this project is more dedicated to the ecosystem scenarios based on stable coin applications.
- BenFen Bridge is the native asset cross-chain bridge planned to be launched on this chain in the near future
- BenFen Card is a compliant payment solution integrated into our daily consumption
- BenFen Pay is a comprehensive payment ecosystem that can realize functions such as direct cryptocurrency payment, seamless conversion between digital currency and fiat currency, and on-chain escrow payment
- BenFen KYC is an on-chain identity authentication and authorization system that realizes one-click query of multi-platform KYC records and point-to-point identity information verification channel by aggregating the authentication results of various KYC providers
- BenFen C2C is an innovative decentralized escrow trading platform
