Author: Nancy, PANews

Cryptographic assets are rapidly penetrating the real world. As a new financial paradigm that integrates traditional payments with DeFi, PayFi can liberate payment flows from lengthy paths through financial institutions, reshaping the way financial interactions occur in the real world. In response to this market trend, Quai Network, an L1 blockchain that recently launched its mainnet, has built a dual-core driven crypto infrastructure that can help unlock more potential for PayFi. Its innovative design can break through the efficiency bottlenecks of traditional payments and the scalability challenges of blockchain, paving the way for a seamless connection between the crypto economy and the real world.

Challenging the "Impossible Triangle" and Paving a Technological Highway for PayFi

The evolution of Bitcoin from a niche consensus among geeks to a global mainstream asset marks the gradual maturity of cryptographic technology and its integration into traditional finance. PayFi, as an emerging crypto narrative, challenges the traditional financial framework with its innovative model of "Buy Now Pay Never." It is important to note that traditional payment systems are constrained by high fees, long settlement periods, and geographical limitations, while existing crypto payment solutions face issues such as cost volatility, insufficient throughput, and narrow application scenarios, making it difficult to meet large-scale commercial demands.

PayFi aims to achieve instant settlement, low-cost cross-border payments, and seamless interaction with RWA through blockchain technology, addressing the pain points of traditional finance and endowing crypto assets with practical value. However, its large-scale application requires finding a balance between transaction efficiency, cost control, and ecological compatibility, placing extremely high demands on infrastructure. Quai Network, as a scalable and programmable L1 blockchain, provides support for PayFi with its technological advantages.

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

Specifically, Quai Network's sharding architecture employs a dynamic sharding algorithm that can process transactions in parallel based on demand, enhancing throughput without sacrificing security. Unlike traditional blockchains (such as Bitcoin or Ethereum) that use a single-chain recording method, Quai Network achieves higher performance by concurrently processing transactions through multiple independent execution shards. However, as the number of shards increases, cross-shard coordination and consensus speed become scalability bottlenecks. PoEM optimizes the PoW consensus by introducing entropy (i.e., randomness) for block removal, giving blocks weight. Nodes prioritize selecting blocks with the most entropy removed as the chain head, thereby eliminating fork disputes, quickly reaching consensus, and reducing the impact of network latency.

It can also be understood that dynamic sharding is like a multi-lane highway that can dynamically adjust lanes based on transaction volume, allowing transactions to be processed in parallel to avoid congestion; PoEM acts like an intelligent navigation system, prioritizing transactions with the least trouble to ensure smooth cross-shard transactions without conflicts. This enables Quai Network to maintain high throughput and security in high-load scenarios, becoming a superhighway designed for future payments.

Cross-Chain Interoperability: Quai Network adopts a hierarchical multi-chain architecture, dividing the network into multiple interoperable blockchains (execution shards): the main chain (Prime Chain), sub-chains (Region Chains), and partition chains (Zone Chains). This design can achieve throughput of up to 50,000 TPS. To enhance cross-shard 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 transferring money using Quai Network like swiping a globally accepted credit card; whether sending money from the U.S. to a friend in Europe or buying a cup of coffee at the corner, it arrives within seconds, costing less than a cent, and is secure and tamper-proof. In this process, the main chain coordinates, the sub-chains settle the bills, and the partition chains act like cash registers for instant settlement, making cross-border payments as quick and efficient as local transactions.

More importantly, Quai Network is compatible with the Ethereum Virtual Machine (EVM), allowing developers to directly use Ethereum tools to develop and deploy smart contracts without learning a new tech stack, significantly lowering the entry barrier. Additionally, Quai Network can seamlessly connect with the Ethereum ecosystem (such as DApps, wallets, and infrastructure). Furthermore, Quai Network employs an anti-MEV (Maximum Extractable Value) transaction ordering mechanism to ensure fairer and more efficient execution in the DeFi market.

Merged Mining: Quai Network significantly enhances the scalability, security, and energy efficiency of the blockchain through a merged mining mechanism. Miners can perform a single hash calculation while protecting multiple blockchains. 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 efficient collaboration through multi-chain parallelism, shared computing power, and overlapping blocks. In the Quai Network system, miners can simultaneously mine three chains, improving computing power utilization and network throughput. Overlapping blocks (generated when a miner finds a nonce that meets the difficulty of multiple chains) achieve cross-chain state transfer through hash links, reducing reliance on trust and enhancing system stability.

For example, when a user buys coffee at a global chain coffee shop, traditional blockchains are like each country's store using independent cash registers, leading to slow and error-prone checkouts. In contrast, Quai's merged mining is like accountants using smart devices to process multiple stores' bills simultaneously, ensuring fast and secure payments. Overlapping blocks serve as payment vouchers that can be used in multiple countries; regardless of which chain the payment is made on, the system can quickly recognize and complete the settlement.

Additionally, Quai Network employs an anti-ASIC ProgPoW algorithm, encouraging GPU mining, lowering hardware barriers, and strengthening decentralization. Of course, any blockchain that supports ProgPoW can join Quai Network for merged mining, further expanding its ecological influence.

In summary, as the global demand for high-performance blockchains continues to grow, Quai Network attempts to break the "Impossible Triangle" problem through technological innovations such as PoEM consensus, dynamic sharding, cross-chain interoperability, and merged mining, constructing an efficient, secure, and scalable blockchain network that can inject more possibilities into high-load application scenarios like PayFi, laying a technological foundation for the popularization of crypto assets.

Building a Dual-Driven Token Model, the Mainnet is Officially Launched

In addition to providing strong technical support for the diverse application scenarios of PayFi, Quai Network's dual-token economic model can balance stability and flexibility in different financial market environments, bringing dual-driven value storage and transaction medium to PayFi application scenarios.

Among them, Quai is a deflationary token compatible with EVM, serving the function of storing value. The supply of Quai consists of two parts: pre-allocation from the genesis block and miner rewards, designed to have scarcity and a deflationary mechanism, ensuring that the growth rate of token supply is always lower than the rate of network expansion. In other words, as the network scale and participation increase, the supply of Quai will gradually decrease. This mechanism effectively avoids the cyclical boom and bust patterns found in traditional economies, allowing Quai to meet the decentralized economy's demand for value storage while maintaining the potential for appreciation in the long term. In PayFi scenarios, Quai's value storage function provides users and financial institutions with stable asset anchoring points, such as savings products, DeFi collateral, settlement assets, and cross-border asset management.

Qi is another core token within Quai Network. As a "flatcoin" backed by energy, its value is directly linked to the energy costs of mining. This allows the supply of Qi to flexibly respond to changes in market demand and mining costs: when mining difficulty increases, the supply of Qi increases; when difficulty decreases, the supply correspondingly decreases. Quai Network has also designed a two-way conversion mechanism between Qi and Quai, allowing users and miners to exchange based on the current block reward ratio.

Moreover, Qi possesses cash-like privacy features and low volatility, making it suitable as a unit of account and medium of exchange, ideal for daily payments and dynamic financial activities. Its efficiency and stability support daily payments and dynamic financial activities in PayFi, including instant payments and incentivizing ecological participation, allowing users to enjoy the convenience of blockchain in everyday 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, meeting the diverse financial needs for wealth preservation and efficient payments, while also laying a solid foundation for the diverse application scenarios of decentralized finance.

Quai Network's innovation has also gained recognition from capital and the market. To date, Quai Network has raised $15 million through multiple rounds of financing, with participating institutions including Polychain, Alumni Ventures, MH Ventures, Cogitent Ventures, and TPC Ventures. Meanwhile, Quai Network is actively building and expanding its cooperative ecosystem, covering multiple fields such as DeFi, AI, DAO, infrastructure, and wallets, including Kaito AI, IO.NET, Entangle, Akash Network, MarginEx, IceCream Swap, Penomo, Portal DeFi, Butterfly Protocol, and UTXO Alliance.

In summary, Quai Network has built a technological and application-driven highway for the crypto economy and commercial scenarios, especially providing an ideal infrastructure for high-load, low-latency payment applications like PayFi. Through challenging the "Impossible Triangle" with technological innovations and a dual-driven token design, Quai Network not only helps resolve the contradictions between traditional payments and blockchain scalability but also accelerates the deep integration of crypto assets with the real world, bringing more room for development to the decentralized economy.

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