ICP and FET News: The cryptocurrency market declined after the debate between Trump and Kamala. Bitcoin fell below 58,000 and dropped back to 56,000. While altcoins and meme coins fell, artificial intelligence tokens outperformed altcoins on a weekly basis. Especially FET, INJ, and ICP achieved double-digit gains, challenging the downward trend in the cryptocurrency market.

Why is the Internet Computer (ICP) price rising?

AI token ICP has been constantly on the rise for the past four days and reached its highest level in a month, $9. Since the market crash in July, this altcoin, which has reached the highest peak, has dropped from $9.11 to $8.60 during the day. It is estimated that the rise in the ICP price, which has been moving independently from the market for the past week, is due to the web3 project called Bridge 23, which will be launched on Wednesday, September 11.

Bridge 23 is being built on the ICP chain, which will enable users to directly transmit their data to the counterparty. According to the official announcement shares of the ICP token made by the DFINITY X account, the token offers seamless interoperability with another blockchain without the need for a bridge. It stands out as a platform that can store tokens in chain keys and enable transfers at zero cost.

ICP technical chart and EMA Source: Coinmarketcap In addition to current developments, the increase in token burning activities was also a development that contributed to the price rise. ICP token burning rate increased by more than 6% in one day and reached 206,850.

ICP price is trading at the 100 EMA level and could strengthen its upward momentum by surpassing the 100-day average. Finally, ICP is currently trading at $8.63, up 10% for the day at the time of writing this article. With trading volume increasing over 200%, ICP's Relative Strength Index (RSI) is at 59, with a noticeable drop from 64 in the past day.

The weekly gain of FET and INJ coins is increasing

In the artificial intelligence token market, FET, TAO, and INJ prices have gained double-digit gains on a weekly basis. Injective (INJ) reached $18, rising 13% weekly. The token, which gives a buy signal on technical charts, could reach $20 first if it maintains momentum and then the monthly high of $23.

The price of the Artificial Superintelligence Alliance (FET) experienced a 5% increase. The altcoin, which has been following a falling wedge pattern for a while, recovered and reached its highest point of $1.36 during the day. Then, it quickly fell back to $1.30. The reason behind the 17% weekly increase in FET price was the improvements in the network and the partnership announced between SingularityNET and Ocean Protocol at the beginning of the week. This development includes significant improvements to the FET wallet.

FET current price analysis

The drop in FET price has faced an increase in whale activity. According to Coinglass data, FET's Open Interest (OI) rate has increased by 16% in the last 24 hours, while trading volume has increased by 78%. The increase in volume and OI indicates increased investor adoption. In addition, the increase in long-term positions in FET is also noteworthy. The trading volume, which has increased by 30%, indicates a narrowing of the Bollinger Bands of the cryptocurrency, indicating a slowdown in price movements.

FET technical chart and EMA Source:CoinmarketcapThe price is located at the 200-day EMA level on the daily candlestick chart. Additionally, the price trading above the Ichimoku Cloud on the candlestick chart is considered a positive signal. Finally, the Relative Strength Index (RSI) supports the uptrend by being above 50 and at the 60 level. With the increasing market optimism, FET price could reach $1.34 and then the highest level of the month at $1.40. However, in a pullback, it could drop below $1 to as low as $0.70.

The information in the text is for informational purposes only. It does not constitute investment advice. The author and kriptoparahaber.com are not responsible for any profit or loss resulting from your investments. Investment ultimately depends on factors such as knowledge, experience, research, and personal decisions.

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Inspired by the 'Cypherpunk Manifesto' and Phillip Rogaway's analysis of the ethical characteristics of cryptography, this article explores the intersection of cryptographic work, ethical responsibility, and political activism. The discussion covers the historical background of cryptographic development, the philosophical foundations of Cypherpunk ideology, and the contemporary challenges brought by mass surveillance and privacy issues. By studying these aspects, this article calls for a renewed commitment to developing cryptographic solutions that prioritize human rights and public goods.

Introduction

Cryptography has long been a tool to ensure communication security and protect privacy. However, its role has extended beyond the scope of technical implementation, covering important political and ethical dimensions. The Cypherpunk Manifesto, written by Eric Hughes in 1993,[7][10]Emphasizes the inherent political nature of Cryptography and advocates for its use as a means to ensure privacy and personal freedom. Similarly, the work of Phillip Rogaway Emphasizes the moral responsibility of the Cryptography family, especially in the context of mass surveillance and social impact.

Fundamentally, cryptography can be seen as a means for the public to protect themselves. The 1993 declaration and Rogaway's work emphasized two key points: distrust of the government and protection of collective data. This view was echoed in David Chaum's idea, who proposed a transaction model that relies on strong encryption to protect privacy. Although more than 40 years have passed since these ideas were first proposed, the dream of protecting society from information misuse is still far away. As Chaum warned:

Computerization is depriving individuals of the ability to supervise and control the use of information about themselves. (...) It is laying the foundation for a dossier society, in which computers can infer individuals' lifestyles, habits, whereabouts, and relationships based on data collected from ordinary consumer transactions.[5]。

In reality, we have already gone in different directions. Today, we rely on this data to simplify and improve our lives. In addition, we are willing to provide this data to make devices 'smarter' and more suitable for our needs. On the one hand, this allows us more time to focus on other tasks, such as developing advanced artificial intelligence technologies. On the other hand, we have also forgotten the essence of why cryptography is necessary and what the original dream was.

The shift from a privacy-centric perspective to an embrace of data sharing for convenience highlights a significant moral dilemma. While technological advancements have made life easier, they have also increased the risk of creating a surveillance society. The Cypherpunk spirit, aimed at empowering individuals and protecting their privacy, seems to be inconsistent with current practices. To reconcile these differences, cryptographers and privacy advocates must reignite the original vision of cryptography - not just as a tool for convenience, but as a means to safeguard privacy, autonomy, and resistance against uncontrolled surveillance.

Another paradigm shift involves the link between cryptography and anarchism. As stated in the original cypherpunk manifesto, the ideas of anarchism and the use of cryptography are tightly intertwined. Essentially, cryptography is seen as a tool to advance anarchist principles. Anarchism opposes all forms of authority and calls for the abolition of institutions, finding a natural ally in cryptographic technology.

In some ways, modern cryptography practices continue to challenge institutional authority. However, there exists a paradox: while cryptography aims to resist centralized control, its development and implementation are often determined by experts and funded by large tech companies and institutions. This creates a tension between the ideals of decentralization and the reality of cryptography innovation driven by powerful entities. In order to truly respect the visions of Cypherpunks and decentralization, a method must be found for developing and deploying cryptographic tools that empower individuals while resisting any form of power consolidation.

There exists an ironic paradox in our community regarding knowledge centralization. One of the beloved policies and mottos of the International Association for Cryptologic Research (IACR) is to spread knowledge worldwide. The original and pure idea is great, but somewhere along the way, this notion has been corrupted. Consider the purpose of a nonprofit organization. Emphasis on the word "nonprofit." However, at every IACR conference, the first slide displayed is "We have a strong financial position." Interestingly, for an association that wants transparency, it is difficult to find data on its "finances" beyond attending the conference. Additionally, every year we see conference registration fees and fund amounts increasing, while the original goal of sharing knowledge seems further away or just a utopia.

Let's be honest, we simply built a disguised company under the guise of academic efforts, using the early days of anarchism, renowned professors, and the fascinating era of cryptography. This departure from the fundamental principles of Cypherpunk and anarchism indicates the need to return to the origins of cryptography development - ensuring that it remains a tool that empowers individuals and protects privacy from various forms of centralization and control.

In this article, our goal is to present a comprehensive sociological perspective of cryptography and the entities that have made progress in cryptography possible over the years. We will explore the ethical and moral responsibilities of cryptography, the origins of social movements influenced by cryptography, and the current trajectory of cryptography. One focus will be on tracing the historical significance of cryptography and how it has shaped various aspects of our society. By examining these elements, we hope to gain a deeper understanding of the multifaceted role of cryptography in the modern world.

The historical background of cryptography and its influence

Initially, Cryptography was defined as a branch of mathematics and computer science, focusing on the development of encryption and decryption techniques for communication. However, today, the scope of Cryptography has significantly expanded. While modern Cryptography still has its roots in mathematics, it also involves computer science, electronic engineering, physics, and several other disciplines. Therefore, the more comprehensive definition of modern Cryptography is: "Cryptography is a multidisciplinary field dedicated to digital security research, aiming to provide tools to ensure communication security."

The development of cryptography has been profoundly influenced by its use in wartime communication and its evolution towards digital security applications. Some important historical milestones include:

· World War II and the Enigma Machine: The use of cryptography in military communication and the Allies' decryption highlighted the dual nature of cryptographic work, both as a security tool and as a target for adversaries.

· The emergence of Public Key Cryptography: The introduction of Public Key cryptographic systems in the 1970s completely changed secure communication and laid the foundation for the practice of modern cryptography.

· Shor Algorithm and Prime Factorization: Develops a Quantum Algorithm capable of breaking modern Public Key cryptography deployed globally.

Cryptography made significant advances during the Second World War, and cryptography and cryptanalysis activities were very active during this period. The success of cryptanalysis during this period demonstrated the importance of rigorous analysis and the possibility of vulnerabilities in encryption methods.

With the development of the computer industry and the rise of private sector demand for secure hardware and software, restrictive regulations on the domestic use and export of encryption technology (initially classified as war equipment) have become outdated. Ongoing technological advancements require state-of-the-art security measures.[6]Distrust of data collection and outdated regulations, together with the advocacy of encryption technology, has become both a necessity in the market and a form of resistance to the increasingly rising monitoring system.

In the mid-1990s, with the development of Shor Algorithm, a significant scientific breakthrough was achieved in the field of cryptography. This Quantum Algorithm efficiently solves problems such as integer factorization and discrete logarithms, which form the basis of many classical cryptographic systems such as RSA and ECC. The emergence of Shor Algorithm has stimulated the development of post-quantum cryptography, which aims to construct cryptographic algorithms that can resist quantum attacks. This has become an important research area because the potential realization of Quantum Computers in the future may compromise the security of current cryptographic systems. Ensuring a smooth transition to post-quantum encryption methods is crucial for maintaining the integrity and security of digital communication in the post-quantum era.

Standardization organizations such as NIST (National Institute of Standards and Technology) and ISO (International Organization for Standardization) have played a crucial role in the development and adoption of Cryptography standards, ensuring interoperability and security between different systems and applications. These standards provide guidelines for secure implementation of Cryptography Algorithm and protocol, which is essential for protecting sensitive information in various domains.

Cryptography is now the foundation of modern technologies such as blockchain, Digital Money, secure chat applications, and internet of things (IoT). For example, blockchain technology relies on cryptographic hashes and Digital Signature to ensure the integrity and authenticity of transactions. Similarly, end-to-end encryption in chat applications like Signal and WhatsApp can ensure that only the intended recipient can read the messages.

This field must also continue to evolve to address various cryptographic attacks, including side-channel attacks, brute force attacks, and sophisticated cryptanalysis techniques. Researchers are also constantly developing new defense technologies and cryptographic primitives to enhance the security of digital systems and guard against these evolving threats.

Looking ahead, emerging trends in Cryptography research include advances in Homomorphic Encryption, which allows for computation on encrypted data without decryption; Zero-Knowledge Proof, which can verify a statement without revealing any information except that the statement is true; Quantum Secret Key distribution, which securely distributes Cryptography Secret Key using principles of Quantum Mechanics.

The Cypherpunk Manifesto: A Political Declaration

In the book 'Cypherpunk: Privacy and Security in the Digital Age' [3]From a new philosophical perspective, Anderson addresses several issues regarding the moral ethics and manifesto of the Cypherpunk movement. This book is relatively new and takes a modern approach to the moral ethics of the Cypherpunk movement.

However, the Cypherpunk philosophy not only involves the politics of security and privacy. Fundamentally, the Cypherpunk worldview is normative, meaning it is based on claims about what individuals and institutions should do and what society should be.[3]

This quote enables us to associate it with the Anarchist movement, and even infer that Cypherpunk philosophy can be viewed as a digital iteration of Anarchism. It can be compared with Bakunin's early works, which echoed similar social norms:

We firmly believe that without the freedom of socialism, there is privilege and injustice, and without the freedom of socialism, there is slavery and barbarism.[4]

Both of these passages emphasize the fundamental belief in how society should be constructed and the importance of balancing freedom and justice. Anderson's Cypherpunk philosophy emphasizes digital privacy and security, while Bakunin's anarchism emphasizes the necessity of social freedom and equality. Together, they reflect a shared vision of normative principles that guide the ideal society. This raises a natural question for the Cypherpunk movement: 'Is this the guide to the digital society?'

As mentioned earlier, we must recognize that the distinction between the 'real' world and the 'digital' world is becoming increasingly blurred. Therefore, another related question is: 'Should we update our view of Cryptography constructs to reflect this unified reality?'

The 'Cypherpunk Manifesto' regards cryptography as a fundamental tool for protecting privacy and promoting individual freedom in the digital age. The main principles of the manifesto include:

· Privacy as a fundamental right: Advocating privacy is crucial for a free society, and individuals must have a way to protect their personal information. This right to privacy is seen as the cornerstone of other civil liberties, highlighting that without privacy, other freedoms will be seriously compromised.

· Decentralization and individual empowerment: Emphasizes the importance of Decentralization systems and empowering individuals through strong cryptography. Decentralization is crucial for preventing the abuse of power by centralized entities, thereby creating a more resilient and fair digital ecosystem.

· Activism and Practical Application: Encourage activists to develop and deploy cryptographic tools to counter government and corporate surveillance. This activism is rooted in the belief that practical technological solutions are necessary to maintain digital freedom, and legislative measures alone may not be sufficient in the digital age.

In the modern world where digital reality and physical reality are intertwined, the principles of the 'Cypherpunk Manifesto' are more important than ever. Cryptography is not only a tool for protecting information, but also a fundamental element for ensuring individual sovereignty and resisting oppressive structures. As technology continues to advance, the manifesto's call for privacy, Decentralization, and active activism provides a crucial framework for building a fair and just digital society.

The Ethical Responsibility of Cryptographers

In his paper 'The Moral Character of Cryptographic Work', Phillip Rogaway[10]In China, cryptography research is not value-neutral, and cryptographers have a moral responsibility to consider the social and political impact of their work. He raised several key points:

· Moral Responsibility: Cryptographers should recognize their moral responsibility and the impact of their work on society.

· Historical context: The development of cryptography is closely related to government and military interests, especially in surveillance and intelligence collection.

· Monitoring and Control: Modern Cryptography work often indirectly supports monitoring and control systems, which may conflict with the values of privacy and civil liberties.

· Public Goods: Cryptographers should be committed to contributing to public goods, developing technologies that protect individual privacy and resist authoritarianism.

· Political Participation: Rogaway encourages cryptographers to participate in politics and consider the broader social impact of their research.

Rogaway advocates for a paradigm shift in cryptography and encourages researchers to adopt a more socially conscious approach. This not only requires following the technical aspects, but also actively participating in discussions on the ethical and political aspects of their work.

Despite the significant influence of Rogaway's paper, the ethical challenges in the academic cryptography community have hardly changed, including the International Association for Cryptologic Research (IACR), which still lacks formal ethical guidance.

The essence of cryptography is inherently interdisciplinary - but whether it is rooted in mathematics, computer science, or engineering, it has sparked people's ethical questioning. Karst and Slegers [8]Emphasized the ethical diversity of cryptography education across departments and the necessity of common ethical standards.

In contrast, some departments exhibit a more explicit ethical framework than others. For example, the Association for Computing Machinery (ACM) maintains detailed codes of ethics and professional conduct, including guidelines on honesty, privacy, and social responsibility.[1]And the American Mathematical Society (AMS) and the Mathematical Association of America (MAA) provide more general guidance on ethical behavior [2,9]. In fact, we can say that the code of conduct simply (and very vaguely) touches on ethical issues:

"The MAA requires directors, officers, members, persons remunerated by the MAA and those who contribute their time, and all employees to adhere to high standards of business and personal ethics in the performance of their duties and responsibilities."[9]

When mathematical work may affect public health, safety, or welfare, mathematicians have a responsibility to disclose the impact of their work to employers and the public when necessary.[2]

It is worth noting that the Society for Industrial and Applied Mathematics (SIAM) lacks formal ethical standards. Another important cryptography organization, IACR, although focused on cryptography, also lacks a comprehensive ethical statement. Given the profound intersection of cryptography with political and social issues, this gap is shocking.

Philosophical Discussion on Ethics and Morality

Due to differences in its philosophical nature and interpretations in literature, it is difficult to define what ethics is. Ethics involves issues such as morality, values, the correctness and incorrectness of behavior, and principles that guide individual or collective behavior. It studies what constitutes good and bad behavior, how individuals should act in various situations, and the reasons behind moral judgments.[11]。

As a community rooted in mathematics and computer science, the cryptographic community values precise definitions and rigorous reasoning. However, ethical reasoning provides a path to more formalized definitions. It involves constructing arguments supported by sound evidence and conclusions, aimed at achieving accuracy and logical coherence.

"Our moral thinking should have two complementary goals: to act rightly, and to be able to support our views with perfect reasoning. We want the truth, whether it is the initial assumptions we make about problems or the final conclusions we arrive at. But we also want to ensure that our views are supported by sufficient and sound reasons. This provides two criteria for good moral reasoning: first, we must avoid false beliefs; second, our moral thinking must be rigorous and error-free." [11, Chapter 1, page 10]

The debate about the ethics of cryptography revolves around balancing the enhancement of technical capabilities with the ethical consequences of such advancements. Cryptographers must navigate complex ethical territories, where their work can both protect individual privacy and enable surveillance. The ethical dimensions of cryptographic work require a reflective approach, considering how cryptographic tools and technologies influence societal norms and values. This debate is not only academic but also has real-world implications, affecting policy decisions and shaping the future of privacy and security in the digital age. Addressing these ethical issues requires ongoing dialogue among technical experts, ethicists, policy-makers, and the public to ensure that advancements in cryptography align with broader societal interests.

In other words, the lack of behavioral norms and ethical standards in the field may harm its future development, especially when it attracts scientists from different backgrounds and ages. We cannot assume that everyone will inherently follow the ethical norms of this field. However, establishing clear ethical norms can ensure that the statements of academic associations are more accurate and consistent, and that their statutes are consistent with broader principles of scientific integrity and ethics.

Cryptography, Anarchism and the Future

As mentioned in the third section, the Cypherpunk manifesto and anarchism show significant similarities. The relationship between cryptography and anarchism is rooted in their common emphasis on privacy, personal freedom, and resistance to centralized control. Key intersections include:

· Privacy and Individual Autonomy: Anarchists advocate for individual autonomy and privacy, opposing any form of control or surveillance by the state or other centralized authorities. Cryptography technology enables individuals to maintain their privacy and autonomy in the digital age.

· Resist centralised control: Anarchism opposes centralised control and hierarchical structures, advocating Decentralization and voluntary association. Cryptography supports Decentralization systems by enabling secure peer-to-peer communication and transactions without relying on centralised institutions.

· Empower Individuals: Anarchists aim to empower individuals by dismantling oppressive systems and achieving autonomy and mutual aid. Cryptography tools enable individuals to protect their data and communications, allowing them to control their digital presence and interactions.

· Anonymity and Pseudonymity: Anonymity can be a strategy for anarchist to protect themselves from state repression and organize without fear of retaliation. Cryptographic technologies such as Tor and anonymous cryptocurrencies provide Anonymity and Pseudonymity, allowing individuals to operate without revealing their identities.

· Philosophical Foundation: The philosophical foundation of Anarchism includes a firm belief in individual freedom, non-coercion, and skepticism of authority. The Cypherpunk movement advocates the use of cryptography to achieve privacy and security, sharing similar philosophical values.

· Historical Background: Throughout history, Anarchists have often used secret communication methods to avoid being discovered and suppressed. The development of modern cryptographic technology is partly driven by the desire to protect individuals and groups from the encroachment of authoritarian regimes.

From these key points, cryptography is obviously a key tool to achieve various anarchist goals. Cryptographic methods are tailored to meet specific needs within the anarchist framework, such as ensuring secure communication channels, protecting the identities of activists, and promoting Decentralization collaboration. By implementing private and secure interactions, cryptography can help anarchists resist surveillance and maintain operational security. This empowering technology enables the practical application of anarchist principles, creating an environment where Decentralization and voluntary associations can thrive without external interference.

However, in recent years, the values that once supported the development of cryptographic currencies seem to have been overshadowed by the pursuit of economic interests. While the rise of cryptographic currencies initially aligned with the ideals of Decentralization and financial autonomy, it is now increasingly dominated by speculative interests and profit motives. This shift towards monetization may damage the ethical foundation of cryptography and divert attention from its potential to protect privacy and empower individuals. The community must remember the original values outlined by Cypherpunk and strive to balance innovation with ethical considerations, ensuring that the pursuit of profit does not overshadow the commitment to privacy and individual freedom.

Since the introduction of the Diffie-Hellman Secret Key exchange protocol, cryptography has undergone significant changes. Initially, cryptography was a highly academic and scientific field focused on theoretical advancements and knowledge pursuit. However, over time, it has evolved into a business domain, with companies using cryptographic technology to develop and sell products. This commercialization has shifted the focus from academic exploration to market-driven solutions, often prioritizing profit over the ethical and scientific values that originally guided the field. For the cryptography community, it is crucial to regain its academic roots and reaffirm its commitment to scientific rigor and ethical responsibility. We need to re-focus on several key academic aspects of cryptography. While standardization processes and secure implementations are important, should they consume all our attention? Shouldn't there be a future for exploring new attacks and developing alternative cryptographic schemes?

The intersection of cryptography and anarchism reveals a profound consistency in their core values such as privacy, individual freedom, and resistance to centralized control. By exploring these connections in detail, we can better understand the role of cryptographic technology in advancing these principles and addressing emerging ethical challenges. Ongoing dialogue and collaboration between technical experts, ethicists, and activists are crucial to ensuring that cryptographic progress contributes to the establishment of a more free and just society.

Another key point is the increasing distance between the academic focus in our field and the concept of 'non-profit'. Shouldn't our primary goal be the advancement of knowledge? When did we lose focus and let large tech companies dominate our conferences? For example, how can a student without a large amount of funding afford to attend a conference in a city like Zurich, with registration fees of about 450 euros, plus hotel and travel expenses? Although subsidies provide some solutions, wouldn't it be better to choose a more affordable location to allow for broader participation? When did we become so elitist that we cannot hold conferences in less well-known but more economical cities? This shift to high-cost locations limits accessibility and inclusivity, which runs counter to the fundamental values of academic and scientific exploration.

Author: dpycm.eth

Compilation: DeepTide TechFlow

In the past decade, Cryptocurrency has undergone rapid development, evolving from an initial niche technology experiment to a mainstream financial tool. Web3 payment systems, based on Blockchain technology, ensure transparency, security, and immutability of transactions. These systems are increasingly integrated into e-commerce platforms, point-of-sale systems, and peer-to-peer payment applications, making the use of Cryptocurrency more convenient in daily life.

By 2023, the Web3 payment market is valued at $1.2 billion, and it is expected to continue rising at a compound rise rate of over 15% from 2024 to 2032. Web3 payments are expected to become a key pillar of the digital economy, bringing new opportunities and challenges to the global financial ecosystem, similar to traditional payment systems.

Current Web3 Payment Infrastructure

Web3 payment infrastructure

The existing Web3 payment infrastructure greatly simplifies the traditional payment process. Typically, payment transactions involve only three parties: the payer, the payee, and the blockchain (as a mediator). Since the blockchain itself does not have consciousness, it can be said that only two parties are actually needed, which makes transactions more advantageous in terms of speed and cost. All Web3 payment protocols are based on the same infrastructure, and the specific implementation may vary slightly depending on the requirements of protocol conversion.

Sphere Pay and Loopcrypto.xyz are two unique payment infrastructure protocols that allow businesses to integrate Web3 payment functionality, and we will explore their features in detail later.

What is PayFi?

With the integration of payments and Decentralization finance (DeFi), PayFi has emerged, which is a financial market around the time value of money. PayFi provides a way to meet current needs with future money, which is something that TradFi cannot achieve.

PayFi includes multiple forms of payment:

1. Pay Token, such as TOKEN representing the time value of US Treasury tokenization or income-generating stablecoin;
2. Providing financing for Real World Assets (RWAs) through Decentralized Finance lending, achieving on-chain revenue in real payment scenarios.
3. A new Web3 payment system seamlessly integrated with Decentralized Finance protocol;
4. Moving traditional payment logic to Blockon-chain, aiming to build a comprehensive Web3 payment framework.

One typical case of PayFi is Ondo Finance. This protocol aims to make institutional-level financial products accessible to more people by tokenizing US Treasury bonds. Ondo Finance brings low-risk, stable-yield, and scalable financial products such as US Treasury bonds and cryptocurrency market funds into the blockchain, allowing Stable Coin holders to earn profits from their assets.

Ondo Finance offers two products: OUSG and USDY. OUSG is a tokenization of US Treasury bond fund, while USDY is an income-generating stablecoin backed by short-term US Treasury bonds. As of August 23, 2024, the Total Value Locked of these two products has reached 556 million USD.

Through USDY, holders can not only price in USD, but also earn profits. Therefore, Ondo adds practical application value to the payment token, further promoting the development of PayFi in Web3.

Interesting Payment Innovation

This section will introduce some interesting or little-known innovations in the payment field, without involving encryption cards and up-and-down conversion functions.

Karrier One ( Pay x DePIN)

The combination of payment and DePIN has reasonable applications in the telecommunications network. Karrier One is an operator-level Decentralization network that integrates payment and DePIN functions. The Karrier One network consists of three modules: telecommunications, blockchain, and Karrier numbering system (KNS). They work with global telecommunications providers to provide seamless communication coverage worldwide. The network is managed by Karrier DAO, and Token holders can participate in governance decisions.

Through KNS, users can obtain a Web3 Wallet directly associated with their phone number. This integration enables users to participate in Decentralized Finance activities, send and receive Cryptocurrency, and achieve smooth payment processes, effectively combining PayFi and DePIN. With 7.1 billion mobile phone users worldwide, this provides enormous potential for the rise of the Web3 telecommunications network.

Huma Finance

Huma Finance is an income-based lending protocol. It allows borrowers to collateralize future income for lending by matching with global on-chain investors. The protocol has common credit facilities and is equipped with Decentralization signal processors and assessment agents, which are important infrastructure for integrating income sources, conducting credit assessment, and continuous Risk Management.

As of August 23, 2024, Huma has raised nearly $9 billion, of which $8.83 billion has been successfully repaid, and the current credit default rate is 0%.

Sphere Pay

Sphere is a payment API designed specifically for Digital Money. By providing a one-stop payment experience, Sphere connects ordinary users with stablecoins, accelerating the development of Web3 payment systems.

Sphere provides merchants with customizable or preset front-end and user experiences, making it easy for them to flexibly apply Sphere Pay. In addition, Sphere offers multiple pricing models to meet merchants' different needs for products or services. Sphere does not charge a software usage fee, but instead charges a fixed fee of 0.3% per transaction, making the software freely accessible to all users. This makes Sphere an ideal choice for small businesses, especially those with low volume or low startup costs.

Loopcrypto.xyz

Loop is a Web3 payment infrastructure that helps companies organize or automate collections and payments. With automated payment capabilities, Loop improves operational efficiency and reduces customer churn. The platform supports all ERC-20 Tokens and offers the option to settle in Cryptocurrency or Fiat Currency, reducing the complexity for enterprises in fund conversion.

Loop provides plug-and-play software that minimizes resistance for businesses during implementation. It also integrates with top platforms like Stripe, Zapier, Xero, allowing business owners to seamlessly integrate Loop into their existing financial management systems. As a result, businesses using traditional invoicing systems can easily add Crypto Assets as an additional payment option for their customers without the need for large-scale system modifications.

Orbita

Orbita is a Decentralization L1 payment protocol based on Cosmos, which is still under development and has not yet launched a test network. The team may still be writing documents and White Paper, and these materials have not been made public yet.

The core functions of Orbita will include direct irreversible payments, reversible payments, Decentralization subscription, and e-commerce integration. As an L1 protocol focused on payments, this is a new direction in the payment industry that may bring interesting changes.

Market Data and Updates

Stablecoin总Market Cap

Stablecoin: Transfer Amount

With the prosperity of Cryptocurrency over the past decade, Stable Coin has also developed rapidly. The total market capitalization of Stable Coin has skyrocketed from $20 million in 2017 to $170 billion in 2024. By 2024, the total transfer volume of Stable Coin reached a peak of 60 billion. With the continuous rise in transfer volume, Stable Coin is becoming increasingly common in payments and other applications. As Stable Coin is widely accepted, the demand for payment systems will also increase.

Major stablecoin providers are also actively expanding their market. Tether recently announced the launch of a dirham-backed stablecoin in the UAE, aiming to become the preferred digital payment token in the UAE. Circle's CEO Jeremy Allaire also stated that they plan to develop an instant payment method using USDC on the iPhone. This plan was proposed after Apple allowed third-party developers to use the iPhone secure payment chip. This will make using USDC for payments as simple and smooth as using traditional banks and credit cards.

Since entering the Stable Coin market in August 2023, Paypal has been actively promoting PYUSD. After about a year of online, PYUSD has risen to become the sixth largest Stable Coin, surpassing veteran coins such as FRAX and BUSD. Paypal's expansion on Solana and the incentive program with Kamino have also become strong attractions. In addition, Paypal recently partnered with Anchorage Digital to provide incentives to institutions holding PYUSD, further attracting capital inflows.

Thinking: The Impact of Web3 Payments

One of the major advantages of Web3 is the ability to achieve secure, low-cost, and almost instant global transactions. Although the Web3 industry is still in its early stages, institutions, businesses, and individuals have already started using blockchain for payments.

However, if Web3 payments become mainstream, how will banks react when intermediary costs are reduced? In order to compete for market share, we see banks starting to build their own private blockchains, but even so, their income will still be much lower than the current transaction fees. Resistance can be foreseen, and the popularization of the retail end may still take some time. Obviously, the opacity and centralization of private blockchains will continue the characteristics of traditional banks.

In addition, Web3 payments are particularly advantageous in global transactions, especially in import and export, but have little impact on the needs of ordinary local people. If there is little difference between paying with Cryptocurrency and traditional bank cards at my local grocery store, why should I choose Cryptocurrency? The appeal of self-management? For most people, such minimal benefits are not attractive. Therefore, the conversion cost may hinder the adoption by ordinary users in the short term.

I believe that with the development of Web3 and the payment market, the Stable Coin market will continue to rise in the next decade. Innovations in telecommunications networks such as Karrier One and future revenue financing such as Huma Finance will undoubtedly promote the emergence of more innovations and promote the popularization of the market. Therefore, if there are appropriate catalysts such as regulatory green lights, the prosperity of Web3 payments will be inevitable. In fact, as we have seen in the past few years, the market may continue to rise with or without regulatory clarity. I remain optimistic and look forward to Web3 payments becoming the natural choice without further questioning.

Author: Haotian

How do you view the news of @humafinance raising $38 million? It has to be said that in the context of a declining market and a lack of new narrative hotspots, Huma's new concept of PayFi is truly eye-catching.

So, 1) Why can PayFi become the new topic of discussion? 2) Analyze the underlying business logic of Huma's Lending+RWA+PayFi. 3) How is the follow-up extension space of PayFi's track? Next, let's talk about my opinion:

1）PayFi is a new narrative concept sold by the Solana Foundation, essentially an innovative attempt to apply web3 technology (Programmability currency and Tokenomics) to the real economy, aiming to expand pure on-chain financial innovation (Decentralized Finance) to a wider economic system.

On the one hand, further landing the financial transformation of RWA physical assets, exploring derivative plays such as 'zero net cost shopping', 'accounts receivable financing', 'cross-border payment Settlement', 'creator economy', 'Supply Chain finance', etc.

On the other hand, in the current pure on-chain Decentralized Finance, the yield of Yield is in an awkward situation of leverage stacking. Products such as AVS security Consensus commercialization, DA capacity commercialization, can be aligned with the web2 physical business economy, bringing more abundant sources of Yield to the on-chain world.

In addition, after BTC, ETH Spot, and ETF have successively passed, pure on-chain Decentralized Finance is facing significant compliance pressure, and pure on-chain economy has been criticized for the failure of infra > application. And PayFi, as a new hybrid economic model that combines web3 innovative economic models with regulatory adaptability in the web2 TradFi world, will undoubtedly become the narrative focus of new business models and value creation methods bridging the web3 and traditional web2 physical economies.

2. Based on this narrative background, let's analyze why Huma Finance has become a rising star and leading project in PayFi. First, let me summarize briefly:

Huma is a team from Silicon Valley with rich experience in the field of web2 fintech. It was initially positioned as a Decentralization lending platform, with business models such as Income-Based Loans and revolving credit lines, belonging to the integrated business scope of Lending+RWA.

After acquiring payment application Arf Financial, Huma began to upgrade its business. Based on Arf's compliance qualifications and the rich products and business lines provided by licensed financial institutions for cross-border payments in multiple countries, it is natural that PayFi has become Huma's ultimate financial service goal and vision.

After all, it is a web3+web2 integrated Financial Service platform, so the products and business logic of Huma Finance are relatively complicated. I will illustrate three highlights as examples.

1. Continuously optimized product business lines: HumaV1 mainly provides common credit products such as revolving credit loans and accounts receivable financing, while HumaV2 adds accounts receivable guarantee credit limit to attract institutional investors. Accounts receivable are customer debts generated by the sale of goods or provision of services in the process of enterprise operation, representing future cash flow income of the enterprise. For example, payment waiting periods exist in automobile parts suppliers, large construction contractors, publishing industry, SaaS software service providers, etc.

Accounts receivable services are sufficient to meet the needs of small and micro enterprises, while accounts receivable guarantee credit limits provide more flexible funding application scenarios, allowing funds to be withdrawn at any time within the credit limit and also allowing for recycling. The limits will also be flexibly set based on the company's own operating conditions and future income stability.

Seemingly minor upgrades to financial products have become more scalable, risk-controlled, and stable in terms of returns for institutional investors. They can help Huma gain a larger market share and a more diverse user base.

2. PayFi Stack Modular Architecture: This is an open and modular technical architecture created by Huma Finance based on the business characteristics of PayFi, including: transaction layer (Solana, Stellar), currency layer (USDC, PYUSD), custody layer (Fireblocks, Cobo), compliance layer (Chainalysis, Elliptic), financing layer (Huma), and Application Layer (Arf, Raincard).

This is a complex but systematic PayFi applicability stack service, involving a high TPS public chain transaction execution layer, a complex compliance layer with multiple restrictions, and a financing protocol layer with a mature and rich business product line, which solves most of the barriers for enterprises to enter the PayFi market in one-stop manner.

Its existence and the development of layer2 on Ethereum are similar to the logic of OP Stack and the advancement of Solana, which effectively establishes a common framework and standards for the PayFi industry, enabling technological innovation and business model evolution in the PayFi field.

3. Stable real-world APY returns: Unlike most pure Decentralized Finance projects that rely on token economic models to maintain basic yield returns, Huma protocol brings the huge demand for financial products in the off-chain world to on-chain, becoming a new breakthrough in breaking the deadlock of pure Decentralized Finance returns. For example, the Huma/Arf yield pool provides dynamic returns of 10%-20% for investors at different levels (Senior or Junior), and with platform gains, the APY can exceed 20%.

Huma provides real-time Liquidity solutions for the cross-border payment industry through its Arf platform, connecting to the global cross-border payment market worth $4 trillion. By providing licensed institutions with high turnover (annual turnover of 50+ times) Liquidity support, stable annual returns can be generated, which is incomparable to pure Token incentive models.

Before the RWA narrative became popular, Ondo Finance was able to obtain a stable yield with T-Bills (short-term US government debt instruments), but with the Fed's rate cut, this yield will be difficult to maintain, and the logic of Huma transforming real financial financing needs should be more sustainable as long as it runs smoothly.

Above

If there is any new narrative highlight in the market recently, PayFi must have a place. In addition to its timely birth, which can add stable income possibilities to pure on-chain Decentralized Finance, the most crucial point is that its scalability is extremely abundant.

Not limited to cross-border payments, including trade finance, Supply Chain finance, micro and small enterprise credit, consumer credit, international tuition payment, and many other expandable and imaginatively large application scenarios.

However, the PayFi track is still in the early stages of development, and it will take some time to explore and accumulate in terms of product line expansion and regulatory uncertainties. It is a new narrative direction worth following.