are you looking for the next big crypto narrative well we might just have found it you found it you found it payi is an emerging narrative that’s flown largely under the radar and yet it might just have the most potential of them all in 20125 as stable coin regulations change around the world payi could be the key to crypto’s mass adoption and could send a number of cryptocurrencies moonward in the process my name is guy and by the end of this video you’ll know everything you need to about payi and which cryptos could be set to benefit the most from it trust me folks this is a video you do not want to miss yes this video is about payi that much is true but no Financial advice is coming to you decisions are yours so be sure to think them through and d r it’s the smart thing to do consult a professional before you ape in and with all that said let’s begin okay let’s start with a bit of context payi is an emerging crypto sector that aims to bridge the gap between traditional Finance or trafi and decentralized finance or defi the term payi is short for payment Finance it was coined by the president of the salana foundation Lily louu who unveiled the concept at a conference in July 2024 now the primary focus of payi is to use blockchain technology to create a much more efficient Financial system than the one we’re already using that’s because with trafi transactions between Banks can be delayed and in some cases simply sending money overseas can take days not only that but transaction fees from Banks can be expensive which can cost both businesses and individuals a lot of money that is assuming they can even access a bank account in the first place what the world needs instead is a payment solution that anyone with an internet connection can use one that can settle International transactions in an instant and without needing to pay an intermediary their Hefty fee as Lily points out this is exactly what Satoshi Nakamoto had in mind when they created bitcoin bitcoin’s white paper is literally called quote Bitcoin a peer-to-peer electronic cash system however despite being the most established crypto out there Bitcoin isn’t the ideal payment solution and is instead now mostly used as a store of value but guy I hear you ask what about defi Solutions don’t they already solve this problem well not quite you see for all the financial Wizardry made possible with defi there are a few drawbacks that limit its potential for mainstream adoption for instance there’s the question of scalability since billions of people would suddenly be sending transactions on a daily basis as networks become congested transaction fees would spike making this alternative system unfeasible most defi protocols prioritize security over speed now normally this is great but it does make instant settlements that much harder and of course defi protocols would need to be 100% interoperable to allow payments to be sent universally in the same way you can send money between different banks albeit often very slowly so as you can see neither trafi nor defi are a perfect solution however payi helps solve both Problems by Bridging the two introducing instant Global settlements and minimal transaction fees best of all even the unbanked can jump on board and this is precisely why payi could be one of the biggest developments in all of crypto and no we’re not exaggerating oh then how exactly does payi work well at its core payi is designed to use blockchain Tech to revolutionize and enhance existing Financial systems that’s because blockchain has multiple advantages over the traditional system for one transactions are more transparent and secure and the immutable nature of blockchains means that transactions are tamperproof payfi is also built with smart contracts which allow the automation of complex Financial operations they can execute everything needed to get money from point A to point B without an intermediary what this allows is instant realtime settlements not currently possible in the traditional system consider that in trfi international transaction fees from Banks can be around 6% which can get crazy expensive for larger amounts by cutting these middlemen out of the equation transaction fees can be as low as 0.1% and depending on the blockchain being used millions of dollars could be moved around the world for a fraction of a scent most importantly as we mentioned earlier the decentralized nature of blockchains means that anyone with an internet connection can take part it all sounds pretty awesome right but wait there’s more hey everyone sorry to something called the time value of money or TVM this is something that Lil Lou explained during that conference and it’s simpler than it sounds essentially it means that having money now is more valuable than having that same money later that’s because having that money later means it loses value through two factors inflation and opportunity cost as we all know money’s Supply increases when central banks turn on the printer and as such that money devalues and loses purchasing power over time so the longer you wait the less you’ll be able to buy with that money when you eventually receive it as for the opportunity cost let’s explain this one with a very basic and hypothetical example let’s say you inherit $200,000 lucky you you’re given the choice of receiving it in installments of $50,000 every year for four years option A or a lump sum payment of $200,000 in four years time option b now on paper both option A and option b pay you the same amount of money but in practice taking option A is the better deal that’s because at the end of year one you could invest that $50,000 into something with a steady return let’s say a bond with an annual return of 5% by your second year you’d have your initial $50,000 and the extra 5% so $52,500 plus your second $50,000 payment that brings your year two total to $112,500 by repeating this process you would have $17,620.63 and by year four you’d have $215,500 th000 you’d have if you’d chose an option b to say nothing of the value lost to inflation over those four years basically you can’t invest with money you don’t have a bird in the hand is worth two in the bush so to speak payi can help people get the money that’s due to them quicker allowing them to do more with it so for instance a small business would be able to to pay its employees or buy new supplies more quickly without having to waste valuable time waiting for an international bank transfer or remittance to clear however in order for all it promises to be actually possible payi requires three conditions to be met first the blockchain in question needs to be high performance able to scale up with the number of transactions per second or TPS then there needs to be enough liquidity in things like stable coins to be able to handle the surge in trans action volume and there needs to be decent liquidity of talent that is a good number of developers able to support all this infrastructure now Lily says that the only chain able to do all these things is salana but obviously she’s a little biased after all she is the president of the salana foundation but stick around to see what other cryptos could play a role in the payi revolution so then by now you understand what makes payi tick so where can it actually be used well there’s a number of ways payi could be integrated into the financial world that go far beyond sending cross-chain and crossborder transactions for example payi can also create more liquidity for tokenized real world assets or rwas obviously this includes stable coins which would be the base asset for most payi transactions but it also includes things like tokenized bonds or real estate this tokenization greatly enhances the liquidity for physical assets while streamlining the entire process for example normally trading real estate is a slow process that involves heavy amounts of paperwork and there are all sorts of fees for intermediaries however payi could allow fractional ownership and near instant transactions via Smart contracts payfi can also be used to offer consumers Innovative and flexible payment options without ACR debt one example of this is a concept called by now pay never and no that isn’t some clever new way to start stealing stuff no buy now pay never is a concept that Lil L explained and the idea goes something like this say you want a $5 cup of coffee you have $500 which you put into a lending protocol for 1% interest with payi you get that interest upfront giving you the $5 for your coffee while the borrower repays the $500 Loan in essence that coffee was free and well nothing tastes better than free coffee another area meanwhile that can benefit from payi is the Creator economy hey that one feels rather familiar for those unaware the Creator economy is growing exponentially and is expected to reach $500 billion by 2030 however it’s quite common for creators to have to wait weeks before they see the revenue from their work and yes this does count as work thank you very much anyway payi can help creators out by providing funds upfront instead which the Creator could then return from the revenue generated by their content this allows creators to grow and develop their platforms much faster than they otherwise could but for those of you wondering about real businesses one example we could use is that of Supply chains and trade financing you see it’s common for supply chain operations to be slowed down due to lengthy payment cycles and locked capital in fact one report suggested that the limitations of trafi infrastructure mean that Global businesses are denied $2.5 trillion in annual trade finance that is utterly crazy however payi would allow access to this massive amount of capital that’s because invoicing can be done through decentralized platforms allowing Supply chains to receive payment immediately thereby keeping the wheels in motion so to speak not only that but payi can also help businesses that struggle to get any financial support from Banks which for many could be an absolute Lifeline now obviously everything we’ve just covered here points to the payi sector being incredibly successful heck payi adoption is pretty much baked in I mean from a crypto perspective this is exactly what the industry was once intended to become Once Upon a Time crypto’s Mantra was to bank the unbanked that has long since debased into enrich the mcoin snipers but well perhaps we’re finally starting to Circle back towards that original vision meanwhile Beyond crypto an alternative system is an absolute necessity for many sectors around the world when you consider that the Global Payments and financing Market is expected to reach around $4.8 trillion by 2029 up from $2.8 trillion in 2024 you quickly realize just how much potential there is for the solutions being offered in fact some reports even predict that payi will be 20 times bigger than Defi and reckon that the payi market could reach $1.8 trillion by 2030 so then this naturally raises the question of what payfi platforms already exist as it happens there have been a number of payi platforms pop up since the aforementioned salana Foundation president Lily Lou announced the idea in July last year and this number is bound to increase rapidly for example there’s polyflow a payments platform that aims to address the limitations of trafi and defi polyflow achieves this by improving scalability and transparency parcy while remaining fully compliant with regulations polyflow features two key elements that make this possible the first is PID or payment ID as the name suggests PID is a decentralized ID system that uses ZK proofs to protect the privacy of anyone transacting on the platform the second element is PLP or the payment liquidity pool which helps facilitate fluid transactions without relying on centralized institutions for funds notably p LP uses smart contracts to reduce settlement risks and help utilize capital for both trafi and defi oh and for those wondering polyflow doesn’t have a token but that’s not to say there won’t be one in the future another example is AF which is a global settlements platform built on Stellar off is focused on providing crossborder payments and liquidity for financial institutions it aims to address the inefficiencies of the traditional Finance system that can mean it takes days to send a transaction overseas by allowing for transactions to be settled on the day AR also has an Innovative credit model that allows financial institutions to borrow funds temporarily during transactions and then repay those funds after the payment settled oh and again off doesn’t have a token FYI now of course there are some more wellestablished cryptos that arguably fall within the payfi bracket one example here would be Ono Finance which is known for offering tokenized versions of yield bearing rwas namely us treasuries by Bridging the Gap between Defi and trafi markets Ono opens the door to Capital markets to a broad range of investors who otherwise wouldn’t be able to access them and of course there are plenty of other payi platforms out there too some of which will have crypto tokens of their own but for those you’ll have to Dy so then which cryptos should you keep an eye on as payi starts to take off well let’s start with the most obvious one first salana as we mentioned earlier Lily Loch showed a little bias in saying that salana would be the only blockchain capable of supporting payi and even though there are other chains that could benefit there’s no denying that salana is in a good position to lead the field or at least it will be as soon as its fire dancer upgrade is implemented if there’s one thing the Trump mem coins proved it’s that salana still struggles with high levels of demand though whether any other crypto Network would have been able to handle those levels of volume is questionable assuming the network isn’t struggling though sana’s fast transaction speeds and low transaction costs are crucial elements for payi Success not only that but sana’s token extensions allow for programmable features that can provide privacy while giving enough visibility to remain regulatory compliant this could be huge for getting institutions to jump on board anyway another chain that could do well is Believe It or Not ethereum while transacting on ethereum isn’t particularly fast or cheap for that matter it is worth noting that ethereum still hosts The Lion Share of defi activity logically then it’s likely that this could spill over when it comes to payi of course it’ll likely be layer 2s that see the most adoption for payfi transactions since layer 2os are designed to be more scalable meaning much faster transaction speeds at a fraction of the cost if we had to guess between which of the many many ethereum layer 2s would benefit the most we’d probably go with bass not only has Bas seen exponential growth in the layer 2 space but it also benefits from coinbase’s massive user Bas is also highly scalable and has minimal transaction costs and coinbase wallets have even introduced a handy tapto pay feature all of which make bass a great choice for payfi Solutions not to mention that coinbase itself is hyperfocused on Regulatory Compliance the only downside is there’s no base token to ape into yet or how about algorand which has a focus on real world applications like digital payments making it perfect for crossborder transactions not only that but algorand has some pretty impressive Partnerships with government projects and Global organizations that could seriously Drive payfi adoption and potentially send algo flying then there’s Aptos which is insanely fast thanks to its use of the move programming language not only is Aptos capable of subsecond transaction finality but it actually holds the record for the most transactions processed in a single day at300 26 million obviously this means that Aptos is incredibly scalable and would likely cope well with the sudden influx of payfi users and of course we shouldn’t forget about payment specific cryptos like Stella which is focused on facilitating rapid crossborder transactions at a low cost or xrp which is specifically designed for crossborder payments in the same way but with the added focus of institutional adoption and its Partnerships with multiple banks around the world so there are already few contenders looking to ride the payi wave and more will surely follow so keep a close eye on which crypto projects look to lean into this sector in the coming months because those that do it right could see big gains as a result make sure you’re subscribe to this channel because we’ll be sure to keep you updated with payi and of course the rest of the wonderful world of crypto now if you’re Blown Away by payi show it by Smashing that like button it really helps the channel out and if you want to dive into salana in more depth then why not check out our recent update on it over here thank you for watching and I will see you again soon [Music]
