Solana blockchain released a set of decentralized payments standards and protocols under a new product named Solana Pay, designed to facilitate dollar-based stablecoin settlements in USD Coin (USDC), for merchants and consumers.
According to the release on 1st February, the protocol is designed to focus on enabling online and point of sales payments with the capacity to move any volume of digital dollar currencies on the Solana blockchain.
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Why Is It A Game-Changer?
Solana Pay is one of many efforts to solve the crypto payments puzzle, such as Bitcoin’s Lightning Network, and many other stablecoins. But through this protocol, Solana believes it has solved some problems that have caused setbacks for crypto payments.
Obviously, crypto payments have not proven their professed worth as the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) incessantly suffer from slow speeds and outrageous costs. They can’t even compete yet with the world’s leading payment networks, as they only do a fraction of the transactions Visa and Mastercard’s centralized networks process.
According to Solana, the new product has the potential to facilitate instant access to user funds while offering greater liability at the same time with no holding periods or bank transfer fees when compared to traditional financial institutions.
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Although Solana network is not as big as both Bitcoin and Ethereum networks, it has fast transactions (65,000 per second) and a low cost (fractions of a cent per transaction).
Companies to Integrate Solana Pay on Their Platforms
According to the report, the initial development of the new product came through Solana Labs, Checkout.com, Circle, and Citcon while Phantom, FTX, and Slope worked on digital wallet integrations. All these companies involved will integrate Solana Pay on their existing platforms.
For instance, Crypto exchange FTX has enabled its users to initiate transactions via Solana Pay while passenger vehicle rental company Bandago Van Rental has offered San Francisco customers the ability to transact via a Solana Pay point of sale integration.
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As stated in the report, the payments structure of the new product leverages the Solana blockchain that has the ability to facilitate 65,000 TPS, near-instant settlement of around 400 milliseconds, and fees of around $0.00025 per transaction.
Reacting to the new development, Solana Labs payments head Sheraz Shere, said:
“Solana Pay gives merchants a framework to transact with their customers, enabling them to accept and settle funds directly, with no intermediaries.”
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