This sub-chain: a public chain more suitable for stablecoin application scenarios

Since its inception, Bitcoin has been positioned as a peer-to-peer payment system. However, its biggest problem is that its price is too volatile, making it unable to play the role of a payment currency in specific application scenarios. The emergence of stablecoins can just make up for Bitcoin. shortcomings.

Stablecoin-based application scenarios such as PayFi have great

potential, introducing Web2 users to Web3

In October 2024, Stripe acquired the stablecoin platform Bridge for US$1.1 billion, setting a record as the largest acquisition in the crypto field and heralding the imaginative space created by the combination of stablecoins and payments. In addition, the European Union, Hong Kong, the United States, the United Kingdom, Singapore, etc. have also introduced policies related to stable currencies, providing policy guarantees for the development of the market.

As for the on-chain part, as of December 5, 2024, the total issuance of stablecoins has reached nearly 200 billion US dollars . In the off-chain part, according to data from the World Bank, the number of people over 15 years old with bank accounts or mobile accounts accounts for only 76.2% of the total population in the world. This also means that there are still 23.8% of the world's population (15 years old+), about 2 billion people. No bank account yet. This group of people can enter Web3 through applications such as PayFi and become users of CEX, DeFi and other applications, which greatly promotes the process of Mass Adoption.

Proportion of global population with bank accounts in 2021 Source:World Bank Database

In addition, in terms of cross-border payments, stablecoin cross-border payments also have great potential. According to statistics from the Bank for International Settlements (BIS), global cross-border payments will exceed US$29 trillion in 2022. Traditional infrastructure is expensive and slow, while cross-border payments based on blockchain stablecoins are fast, low-cost, and can provide 24/7 services.

We believe that stablecoin payment will gradually occupy a larger share of cross-border payments. If it takes 50% of the share, it will expand the volume of the entire stablecoin payment by 1.88 times; and if it takes 80% of the share, it will expand by 3 Double the payment volume.

There is also considerable potential in the non-USD stablecoin market

Recently, a report from Standard Chartered Bank also pointed out that non-US dollar stable currencies are also gradually gaining attention, including in some economies with relatively large foreign exchange fluctuations, such as Turkey. The development of stable currencies can reduce exchange rate fluctuations. At the same time, it can also reduce dependence on the US dollar. In addition to issuing USD stablecoins, the BenFen ecosystem also issues stablecoins based on other currencies to occupy this market, such as BJPY, BINR, etc.

This branch is a public chain more suitable for stable currency

application scenarios.

In application scenarios based on stablecoins, whether on-chain or off-chain, the first and second requirement for infrastructure is security. Once security risks arise, no matter how tall the building is, it will fall short.

Compared with Ethereum and Tron, which use Solidity and Rust as application development languages, the application development language of BenFen chain is Move language , which has higher security. In addition, as the infrastructure of stable coins, it also requires higher performance, low gas fees and a robust consensus mechanism. The BenFen chain has a throughput of tens of thousands of transactions per second and a latency of 0.5s, making it more suitable for stablecoin application scenarios.

Safer: Adopt a safer programming language (Move language)

This branch is written in the Move language . Move has a strict type system that can catch many common errors at compile time, such as type mismatches and null pointer references, thereby improving code security. In addition, Move manages assets through the concept of resources. These resources have strict life cycle management to ensure that resources can only be used and delivered in the expected manner, avoiding many security vulnerabilities such as re-entrancy attacks and resource leaks. In addition to the above advantages, Move has its own unique advantages in permission control, immutability, formal verification, etc., thus greatly improving its security.

High performance: Using enhanced consensus mechanism to achieve sub-second latency and tens of thousands of transactions per second throughput

This sub-chain innovatively adopts an enhanced consensus mechanism , combining DAG-based consensus and consensus-free methods to achieve low latency and high TPS, while maintaining support for complex contracts, generating checkpoints, and cross-epoch reconfiguration verification. The ability to gather.

In terms of latency, the BenFen chain can achieve a latency of 0.5 seconds, which is much faster than Ethereum’s 12 seconds, and also faster than Tron and Solana.

Comparison of latency of each chain

In terms of TPS, BenFen chain can achieve tens of thousands of transaction processing volumes, which is also higher than Ethereum, Tron and Solana.

Comparison of TPS of each chain

Convenient login: This branch provides users with a more convenient and

secure login experience through zkLogin

Benfen innovatively introduces the design of zkLogin to provide users with a method of address generation and transaction signature based on third-party authorization. Users can quickly log in through Apple accounts and Google accounts , without the need for mnemonic words, which is more convenient and faster.

zkLogin login interface of BenFen chain

Low Gas Cost: Reduce Gas Cost in Multiple Links

This sub-chain has been optimized in multiple aspects of Gas fees to achieve low Gas fees. For example, each validator node submits the lowest bid they are willing to process transactions in every epoch. This sub-chain will automatically sort according to the quotations submitted by each verification node, and select the price at the 2/3 position calculated according to the pledge ratio as the reference price.

In addition, when the Gas price submitted by the user is higher than the reference price, the difference is regarded as a tip paid to the network, and paying the tip can allow the user to obtain a higher priority. Different transactions require different amounts of computing time to process and execute.

Finally, the storage mechanism of this branch provides storage fee refund when a transaction deletes a previously stored object.

The native stablecoin BUSD supports Gas fee payment and Staking

Compared with the centralized issuance models of USDT and USDe, BUSD is issued in a decentralized manner and supports the payment of gas fees and staking within the chain, which is not available in other stablecoins. At the same time, it is also a stable currency built into this branch chain, which is different from USDT, DAI, and USDe. In addition to BUSD, Benfen will also issue stablecoins linked to other major currencies based on oracles, such as BJPY linked to the Japanese yen.

Issuance mechanism: 50% of BFC tokens will be used as collateral to issue

BUSD

When the public chain is initialized, 50% of the BFC will be permanently used as treasury collateral for issued stablecoins, which can greatly improve the security and stability of the system, something that other public chains do not have. For example, this is like Ethereum permanently placing ETH tokens into the treasury to issue stablecoins. When the user's wallet is accessed, they can choose to pay BFC to mint the stable currency BUSD. When exiting, the stable currency can be destroyed and BFC redeemed. Users outside the chain can also exchange their USDT/USDC for BUSD at a fixed ratio of 1:1, and when stepping out, they can also exchange their USDT/USDC for USDT/USDC at a fixed ratio of 1:1.

More stable: multiple efficient BUSD price stabilization mechanisms

This department has designed a variety of price stabilization mechanisms, such as the elastic money supply mechanism, which dynamically adjusts the money supply to maintain price stability based on fluctuations in market demand. This stablecoin protocol is automatically executed through specific algorithms and trigger conditions to dynamically increase or decrease the amount of BUSD in circulation. Another example is the exchange rate return mechanism, which relies on the price difference between the stable currency treasury and the same asset in the secondary market. When there is a significant price difference between the two, traders can buy assets at a low price and sell them at a high price to realize arbitrage profits. This not only provides traders with profit opportunities, but also helps maintain market price stability, ensuring that the value of the stablecoin is close to its pegged value.

More focused: Focus on the expansion of stablecoin application scenarios

Compared with other chains that focus on multiple ecosystems, Benfen is more specialized in ecological scenarios based on stable currency applications.

• BenFen Bridge is a native asset cross-chain bridge currently planned to be launched in the near future on this branch chain.
• BenFen Card is a compliant payment solution that is integrated into our daily consumption
• BenFen Pay is a comprehensive payment ecosystem that can realize diversified functions such as direct payment of cryptocurrency, seamless exchange between digital currency and legal currency, and guaranteed payment on the chain.
• BenFen KYC is an on-chain identity authentication and authentication system. By aggregating the certification results of major KYC providers, it realizes one-click query of multi-platform KYC records on the chain and a point-to-point identity information verification channel.
• BenFen C2C is an innovative decentralized secured trading platform