How does Quai Network open the PayFi expressway with an encryption infrastructure that drives technology and applications together?

Author: Nancy, PANews

Cryptocurrencies are rapidly penetrating the real world. As a new financial paradigm that integrates traditional payments and DeFi, PayFi can liberate payment flows from lengthy financial institution paths, reshaping the way financial interactions occur in the real world. In response to this market trend, Quai Network, a Layer 1 blockchain that recently launched its mainnet, has built a dual-core encrypted infrastructure driven by technology and applications to 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 seamless connection between the crypto economy and the real world.

Challenge the "impossible triangle" and pave the technology expressway for PayFi

Bitcoin has evolved from a geeky niche consensus to a mainstream global asset, marking the gradual maturity of encryption technology and its integration into traditional finance. As a new encryption narrative, PayFi challenges traditional financial frameworks with its innovative "Buy Now Pay Never" model. It is important to note that traditional payment systems are limited by high transaction fees, long settlement periods, and geographical restrictions, while existing encryption payment solutions face issues such as cost fluctuations, insufficient throughput, and narrow application scenarios, making it difficult to meet the demands of large-scale commercial needs.

PayFi aims to achieve instant settlement, low-cost cross-border payments, and seamless integration with RWAs through blockchain, solving traditional financial pain points and giving practical value to encrypted assets. However, its large-scale application needs to find a balance between transaction efficiency, cost control, and ecological compatibility, posing high demands on infrastructure. As a scalable, programmable L1 blockchain, Quai Network provides support to PayFi with its technological advantages.

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

Specifically, Quai Network's sharding architecture uses a dynamic sharding algorithm that can process transactions in parallel based on demand, increasing throughput without sacrificing security. Unlike traditional blockchains such as Bitcoin or Ethereum, Quai Network processes transactions concurrently through multiple independent execution shards, achieving higher performance. However, as the number of shards increases, cross-shard coordination and consensus speed become scaling bottlenecks. PoEM optimizes PoW consensus by introducing block removal entropy (i.e., randomness) to assign block weights. Nodes prioritize blocks with the most entropy removal as chain heads, eliminating fork disputes, reaching consensus quickly, and reducing the impact of network latency.

It can also be understood that dynamic sharding is like a multi-lane highway, where lanes can be dynamically adjusted based on transaction volume to allow transactions to be processed in parallel to avoid congestion; PoEM is like an intelligent navigation system, prioritizing transactions with the least trouble to pass through first, ensuring smooth cross-shard transactions without conflicts. This allows 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): Prime Chain, Region Chains, and Zone Chains. This design can achieve throughput of up to 50,000 TPS. To improve cross-shard transaction efficiency, Quai Network integrates seamless cross-chain transactions (ETXs), multi-chain contracts, atomicity guarantees, and dynamic sharding to ensure efficient and secure interoperability.

Imagine that using Quai Network for transfers is like swiping a globally universal credit card, whether sending money from the US to a friend in Europe or buying a cup of coffee on the corner. Funds arrive in seconds, fees are less than 1 cent, and it's secure without tampering. In this process, the main chain coordinates, the side chains settle the bills, and the partition chains settle instantly like a cash register, making cross-border payments as fast 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 the need to learn new technical stacks, greatly reducing the entry barrier. At the same time, Quai Network can seamlessly interface with the Ethereum ecosystem (such as DApps, wallets, and infrastructure, etc.). In addition, Quai Network also adopts an MEV-resistant (Maximum Extractable Value) transaction sorting mechanism, ensuring a fairer and more efficient execution in the DeFi market.

Merge Mining: Quai Network significantly improves the scalability, security, and energy efficiency of the blockchain through the mechanism of merge mining. Miners can simultaneously hash calculations to protect multiple blockchains. This concept was first proposed by Satoshi Nakamoto, and Quai Network further develops it into a multi-chain sharing 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 mine three chains simultaneously, increasing computing power utilization and network throughput. Overlapping blocks (generated when miners find a nonce that satisfies the difficulty of multiple chains) achieve cross-chain state transfer through hash linking, reducing reliance on trust and enhancing system stability.

For example, Xiaopai buys coffee at a global chain coffee shop. Traditional blockchains are like independent cash registers in each country's store, with slow and error-prone checkout. Quai's merged mining is like accountants using smart devices to process bills from multiple stores at the same time, making payments fast and secure. Overlapping blocks are a payment voucher that can be used in multiple countries. Regardless of which chain is used for payment, the system can quickly identify and settle the payment.

In addition, Quai Network adopts the ASIC-resistant ProgPoW algorithm to encourage GPU mining, reduce hardware barriers, and strengthen decentralization. Of course, any blockchain that supports ProgPoW can join Quai Network for merged mining, further expanding its ecological impact.

In this regard, as the global demand for high-performance blockchains continues to grow, Quai Network seeks to break the 'impossible triangle' problem through technological innovations such as PoEM consensus, dynamic sharding, cross-chain interoperability, and merged mining. It has built an efficient, secure, and scalable blockchain network, injecting more possibilities into high-load application scenarios such as PayFi and laying the technical foundation for the popularization of cryptographic assets.

Build a dual-wheel drive token model, and the mainnet has officially launched

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

Where Quai is an EVM-compatible deflationary token that serves as a store of value. The supply of Quai consists of two parts: pre-allocation in the genesis block and miner rewards. Its design incorporates scarcity and deflation mechanisms, ensuring that the token supply grows at a rate lower than the network expansion. In other words, as the network scales and participation increases, the supply of Quai will gradually decrease. This mechanism effectively avoids the cyclical boom and bust patterns of traditional economies, enabling Quai to not only meet the decentralized economy's need for value storage but also maintain long-term appreciation potential. In the PayFi scenario, the value storage function of Quai provides a stable asset anchor point for users and financial institutions, such as savings products, DeFi collateral or settlement assets, cross-border asset management, and various other practical applications.

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

Qi also has cash-like privacy features and low volatility, making it suitable as a unit of account and medium of exchange for daily payments and dynamic financial activities. Its efficiency and stability support PayFi's daily payments and dynamic financial activities, including instant payments, incentivizing ecosystem participation, allowing users to enjoy the convenience of blockchain in daily transactions while avoiding drastic price fluctuations.

It can be said that Quai Network's dual token model provides PayFi with dual guarantees of stability and flexibility in different market environments, meeting the diversified financial needs of wealth preservation and efficient payment, and laying a solid foundation for the diversified application scenarios of decentralized finance.

And Quai Network's innovation has also been recognized by the capital and the market. As of now, 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. At the same time, Quai Network actively builds and expands its cooperative ecosystem, covering various fields such as DeFi, AI, DAO, infrastructure, wallets, including Kaito AI, IO.NET, Entangle, Akash Network, MarginEx, IceCream Swap, Penomo, Portal DeFi, Butterfly Protocol, and UTXO Alliance.

Overall, Quai Network has built a high-speed road for the encryption economy and commercial scenarios, integrating technology and applications, especially providing an ideal infrastructure for high-load, low-latency payment applications such as PayFi. Through challenging the 'impossible triangle' of technological innovation and dual-wheel-driven token design, Quai Network not only helps to solve the contradiction between traditional payment and blockchain scalability but also accelerates the deep integration of encrypted assets with the real world, bringing more room for decentralized economy.