Just like AI gets thrown around on everything it seems like ever since DeFi that Fi kind of randomly gets tossed around as well. Such cases as gamefi, socialfi and so forth. Well guess what...

Now there's Payfi and what exactly is it and how can you get involved? I'm going to cover that today and provide my thoughts and opinions on it to see if there are any possibilities.

• This article is for entertainment purposes only. Do your own research before investing and understand the risks before investing. In short take responsibility for your own actions which for whatever reason is hard for people to own up to and do these days. Buck up cowboy!

What Is Payfi's mission?

The goal of Payfi is to be the middle man that bridges TradeFi and DeFi together. Yep more fi's to add to the pile. I mean honestly just right off the bat this feels like exactly what crypto was set out to remove and get ride of or replace was the middle man banks that simply just crushed people and came out on top in the 2007 crash.

Payfi stands for Payment Finance and first came to light from the Solana creator who showed off what it could do at a conference. The goal is to move money and move it faster. Like we see with the banking sector money deposited into banks or moved often have a three day delay on them in which they are also business days slowing down the process even more.

There's also the other side of that of fees which banks charge a arm and leg for. I mean have you ever tried to send money bank to bank it often gets slammed with high fees and random charges just another money grubbing way for banks to take more of YOUR money.

Sure you could say crypto already does this or defi already does this. However these systems still have their drawbacks. These drawbacks are set to be fixed with Payfi.

Payfi is built off of smart contracts which allows it to be able to create contracts for various things being fulfilled before money is released to the other person. A big part of this to work is that there would need to be enough locked up liquidity in terms of stablecoins mostly for it to work.

How Can This Benefit Us

The main areas that Payfi works best is with payments to others. For example the creator economy in which for example if you make youtube videos you know the revenue you make today you often have to wait a month to get as you're paid just once a month.

With Payfi you could get hourly or daily payouts allowing you faster access to your money. It might not seem like a lot but let's say you make $5,000 in revenue off youtube. But then youtube holds that money before paying you for 30 days. Well that's 30 days lost which you could have been earning money on daily via interest or other investments.

That would be roughly $17 in lost interest or potentially more from holding you back on other investments or actions in your company. it might not sound like a lot but over the course of time this really adds up. That $17 each month lost is now $204 a year in lost potential revenue just because someone didn't want to pay you right away.

This also happens with other areas such as trade and business in which invoices are generated and then have to wait to be cleared before things are shipped. With Payfi these transactions are instant and also very low fee allowing business and really the world economy to move at a much faster rate. Again might not seem like a lot but when you're doing billions of dollars in transactions those fees and time delays add up quickly.

Possible Areas To Profit

Solana would be the first only because the CEO of Solana is the first one who presented the option in a conference in 2024. Thus it feels like the natural selection. However just being the first often you find arrows in your back from all the competitors who try to take you down and often times a competitor will beat you out as they learn from your mistakes and don't have to brunt the expense of trying new things themselves thus saving a boat load of time and funds.

Ethereum could be another option that takes this on. Mainly because it has that market cap share and a wealth of money in its market cap to be able to handle such things. The big stop gaps though is it would have to be a faster layer two token as the main layer wouldn't be able to handle the transactions. This could factor in BASE which is coinbase's layer two token and has been showing a lot of strong growth in the last year.

Posted Using INLEO