How to enable the PayFi highway of Quai Network for encryption infrastructure that drives both technology and application?

Author: Nancy, PANews

Crypto assets are accelerating their penetration into the real world. As a new financial paradigm that integrates traditional payments and DeFi, PayFi can free payment flows from the lengthy paths of financial institutions and reshape the real world financial interaction methods. Faced with this market trend, the L1 blockchain Quai Network, which was officially launched on the main network not long ago, has created a dual-core encryption infrastructure driven by technology and application, which can help unlock more potential in PayFi. Its innovative design can break the efficiency bottlenecks of traditional payments and the blockchain scalability problem, thus paving the way for the seamless connection between the crypto economy and the real world.

Challenge the "Impossible Triangle" and pave the technical highway for

PayFi

Bitcoin has evolved from a niche consensus to a mainstream global asset, marking the gradual maturity of encryption technology and its integration into traditional finance. PayFi, as an emerging crypto narrative, challenges the traditional financial framework with the innovative model of "Buy Now Pay Never". It should be noted that traditional payment systems are limited by high fees, long settlement cycles and geographical restrictions, while existing crypto payment solutions face problems such as cost fluctuations, insufficient throughput and narrow application scenarios, which are difficult to meet large-scale commercial needs.

PayFi aims to achieve instant settlement, low-cost cross-border payments and seamless linkage with RWA through blockchain, solve traditional financial pain points and give practical value to crypto assets. However, its large-scale application requires a balance between transaction efficiency, cost control and ecological compatibility, and puts high requirements on infrastructure. As a scalable and programmable L1 blockchain, Quai Network supports PayFi with its technological advantages.

PoEM and Dynamic Shaving: Quai Network combines innovative consensus mechanism PoEM and dynamic sharding architecture to provide an efficient, scalable and secure blockchain solution.

Specifically, Quai Network's sharding architecture adopts dynamic sharding algorithms, which can be processed in parallel according to transaction needs, which can improve throughput without sacrificing security. Unlike the single-chain recording method of traditional blockchains (such as Bitcoin or Ethereum), Quai Network achieves higher performance by executing multiple independent shards and concurrent processing transactions. However, as the number of shards increases, cross-shash coordination and consensus speeds become expansion bottlenecks. PoEM introduces entropy (i.e. randomness) of block removal to assign block weights by optimizing PoW consensus. Nodes prefer blocks with the most entropy removal as the chain header, thereby eliminating fork disputes, quickly reaching consensus, and reducing the impact of network latency.

It can also be understood that dynamic sharding is a multi-lane expressway, which can dynamically adjust lanes according to transaction volume, so that transactions can be processed in parallel to avoid congestion; PoEM is like an intelligent navigation system, which prefers "the least trouble" transactions to pass first to ensure smooth cross-shash transactions and no conflicts occur. This allows Quai Network to maintain high throughput and security in high load scenarios, becoming a super highway designed for future payments.

Cross-chain interoperability: Quai Network adopts a hierarchical multi-chain architecture that divides the network into multiple interoperable blockchains (execution shards): main chains, sub-chains and zone chains. This design can achieve throughput of up to 50,000 TPS. In order to improve cross-shash transaction efficiency, Quai Network integrates seamless cross-chain transactions (ETXs), multi-chain contracts, atomic guarantees and dynamic sharding to ensure efficient and secure interoperability.

Imagine that transferring money with Quai Network is like swiping a global credit card. Whether it is remitting money from the United States to European friends or buying a cup of coffee on a street corner, it will be paid within a few seconds, and the fee is less than 1 cent, which is safe and untampered. In this process, the main chain is responsible for coordination, the sub-chain is responsible for clearing the bills, and the partition chain is settled instantly like a cash register, making cross-border payments as fast and efficient as local transactions.

More importantly, Quai Network is compatible with Ethereum Virtual Machine (EVM), and developers can directly use Ethereum tools to develop and deploy smart contracts without learning new technology stacks, greatly reducing the entry barrier. At the same time, Quai Network can also seamlessly connect with the Ethereum ecosystem (such as DApps, wallets and infrastructure, etc.). In addition, Quai Network also adopts an anti-MEV (maximum extractable value) transaction sorting mechanism to ensure more fair and efficient execution in the DeFi market.

Merger mining: Quai Network has greatly improved the scalability, security and energy efficiency of blockchain through merger mining mechanisms. Miners can hash computing at one time and protect multiple blockchains at the same time. This concept was first proposed by Satoshi Nakamoto, and Quai Network further developed it into a multi-chain shared protocol network, ensuring network security and achieving efficient collaboration through multi-chain parallelism, shared computing power and overlapping blocks. In the Quai Network system, miners can mine three chains at the same time to improve computing power utilization and network throughput. Coinciding blocks (generated when miners find nonces that meet the difficulty of multiple chains) realize cross-chain state transfer through hash links, reducing dependence on trust and enhancing system stability.

For example, Xiaopai buys coffee in a global coffee chain. Traditional blockchains use independent cash registers in stores in each country, and checkouts are slow and error-prone. Quai's merger mining is like an accounting using smart devices to process bills from multiple stores at the same time, making payments fast and safe. The overlapping block is a payment voucher that can be used in multiple countries. No matter which chain it pays, the system can quickly identify and complete settlement.

In addition, Quai Network adopts the ASIC-resistant ProgPoW algorithm to encourage GPU mining, lower hardware thresholds, and strengthen decentralization. Of course, any blockchain that supports ProgPoW can join Quai Network for merger and mining to further expand its ecological influence.

From this point of view, with the continuous growth of global demand for high-performance blockchains, Quai Network has tried to break the "impossible triangle" problem through technological innovations such as PoEM consensus, dynamic sharding, cross-chain interoperability and merger mining, and has built an efficient, secure and scalable blockchain network that can inject more possibilities into high-load application scenarios such as PayFi and lay a technical foundation for the popularization of crypto assets.

Create a token model with dual-wheel drive, the main network has been

officially launched

In addition to providing strong technical support for the diversified application scenarios of PayFi, Quai Network's dual-token economic model can take into account stability and flexibility in different financial market environments, bringing a dual-wheel drive of value storage and trading media to PayFi application scenarios.

Among them, Quai is an EVM-compatible deflationary token that assumes the function of storing value. Quai's supply consists of two parts: Genesis block pre-allocation and miner rewards. It has scarcity and deflation mechanisms in design to ensure that the growth rate of token supply is always lower than the network expansion rate. In other words, as network size and participation increase, Quai's supply will gradually decrease. This mechanism effectively avoids the cyclical prosperity and recession patterns in the traditional economy, allowing Quai to not only meet the demand for value storage in the decentralized economy, but also maintains the potential for value-added in the long run. In the PayFi scenario, Quai's value storage function provides users and financial institutions with stable asset anchor points, such as savings products, DeFi collateral or settlement assets, cross-border asset management and other practical applications.

Qi is another core token in Quai Network. As an energy endorsement, "flatcoin" means its value is directly linked to the energy cost consumed by mining. This allows Qi's supply to flexibly respond to changes in market demand and mining costs: when mining difficulty increases, Qi's supply increases; when difficulty decreases, the supply decreases accordingly. Quai Network also designed a two-way conversion mechanism between Qi and Quai, where users and miners can redeemed according to the current block reward ratio.

Qi also has cash-like privacy features and is low in volatility. It can serve as an accounting unit and medium of exchange, suitable for daily payments and dynamic financial activities. Its efficiency and stability provide support for PayFiPayFi daily payments and dynamic financial activities, including instant payments, incentives for ecological participation, etc., allowing users to enjoy the convenience of blockchain in daily transactions while avoiding severe price fluctuations.

It can be said that Quai Network's dual token model provides dual guarantees of stability and flexibility for PayFi in different market environments. It can not only meet the diversified financial needs of wealth preservation and efficient payment, but also lay a solid foundation for diversified application scenarios of decentralized finance.

Quai Network's innovation has also been recognized by capital and market. As of now, Quai Network has received US$15 million through multiple rounds of financing, and the participating institutions include Polychain, Alumni Ventures, MH Ventures, Cogitent Ventures and TPC Ventures. At the same time, Quai Network actively builds and expands its cooperative ecosystem, covering DeFi, AI, DAO, infrastructure, wallets and other fields, including Kaito AI, IO.NET, Entangle, Akash Network, MarginEx, IceCream Swap, Penomo, Portal DeFi, Butterfly Protocol, and UTXO Alliance.

In general, Quai Network has built a highway for technology and applications to drive together for crypto economy and business scenarios, especially providing an ideal infrastructure for high-load, low-latency payment applications such as PayFi. By challenging the technological innovation of the "Impossible Triangle" and the dual-wheel drive token design, Quai Network not only helps to resolve the contradiction between traditional payments and blockchain scalability, but also accelerates the deep integration of crypto assets and the real world, bringing more room for display to the decentralized economy.