Satoshi Nakamoto introduced Bitcoin as peer-to-peer electronic money for the Internet. However, BTC failed to deliver on its promise and with its small blocks and high fees, it remained unsuitable for payments. Solana wants to take her place and realize Satoshi's ambitious vision of over ten years ago, but in a different way than Bitcoin, thanks also to SOL, her cryptocurrency that you can trade on Bitcoin Pro.
The project launched Solana Pay, a set of decentralized payment standards and protocols that it hopes is the missing piece of the blockchain payments puzzle for merchants.
Solana Pay will usher in a new era of payments
Solana announced Solana Pay yesterday, Feb.1, describing it as "a decentralized, secure and open-source payment protocol for the next generation of merchant payments."
In an accompanying blog post, Sherez Shere, the head of payments at Solana Labs said he believes Solana Pay will usher in a new era of payments and commerce.
“Our team helped create the foundation for a decentralized, open and truly peer-to-peer payment protocol. We believe this will pave the way for a future where digital currencies are prevalent and digital money moves through the internet like data - uncensored and without intermediaries taxing every transaction. "
Prior to joining Solana Labs last year, Shere held roles at American Express and then Google where he played a key role in the launch of Google Pay. Although he has worked for two of the largest companies in technology and finance, he still believes that the promise of simple, seamless and connected payments has not yet materialized. Solana Pay will finally make it happen, she says.
Will Solana Pay Break into the $ 500 Billion Payment Market?
At the heart of Solana Pay is the promise of a “true peer-to-peer communication channel between the merchant and the consumer”.
While the key solution remains to allow seamless payments, it will offer much more than just a payment platform. Shere says Solana Pay will allow merchants the opportunity to leverage deep engagement with their customers on a blockchain protocol that will incorporate "loyalty, offers and rewards in the same messaging scheme and become real building blocks for the future of commerce" .
The project is betting on the use of USDC, a stablecoin that has become the second largest on the market after Tether, with a market cap of $ 50 billion. Currently, there is $ 4 billion of USDC distributed on Solana, the second highest of any chain after Ethereum. Solana believes that merchants, and their customers, will try to make payments in stablecoins as it is not subject to price volatility like other cryptocurrencies are.
Those who choose to pay in SOL or other Solana Program Library tokens such as Serum can also do so through Solana Pay.
"Merchants should benefit from all the benefits that decentralized on-chain payments can provide, such as network cost savings, DeFi yield generation, zero fraud liability, instant settlement and customer relationship ownership. ".
Solana has partnered with Circle - the creators of USDC - Checkout.com, mobile payment company Citcon, Sam Bankman-Fried's FTX exchange, and others on the project.
In his comments on the partnership, Circle CEO and founder Jeremy Allaire said:
"The launch of Solana Pay is an important step towards expanding access and use for merchants and customers who want a faster and more efficient payment option for daily business."