From the Hyobi blog.
With powerful resources in traditional finance, CrossFi has removed the obstacles in debit card issuance, identity verification, communication, and terminal technology. By integrating LayerZero and Sushi, it enables interaction between crypto finance and traditional finance.
What is CrossFi?
CrossFi is an emerging crypto financial ecosystem built upon the modular architecture of Tendermint, an asynchronous Byzantine fault-tolerant consensus algorithm. It integrates blockchain technology with traditional banking systems to facilitate smart interactions between crypto finance and traditional finance. This integration makes financial services more convenient and efficient, enabling the seamless adoption of crypto assets in daily life.
CrossFi employs its own ways to address issues facing crypto finance, with the CrossFi Chain being the core of the ecosystem. Additionally, CrossFi offers a diverse range of services and financial solutions, including cross-border transfers, token issuance, tokenized banking services, crypto payments and payment card issuance, and comprehensive acquiring services.
A bridge connecting traditional and crypto finance
Currently, the foremost challenge facing the crypto financial market is the interaction between crypto finance and traditional finance, as users find it difficult to pay with cryptos as seamlessly as they do with fiat currencies. Let’s take the example of the CrossFi App to see how CrossFi breaks down the barriers between crypto finance and traditional finance.
The CrossFi App can be considered as a crypto banking application. It issues debit cards of various payment systems, such as Mastercard, VISA, and MIR, to provide cardholders with non-custodial crypto payment and purchase services. With CrossFi’s POS terminals, businesses can easily accept crypto payments and convert these crypto assets into local fiat currencies in real time.
From a technological perspective, CrossFi has removed the obstacles to connect with traditional finance. It issues debit cards and work with partners to facilitate identity verification, communication, and terminal technical support. To tackle banking challenges, CrossFi has fully leveraged its strong background in traditional finance. Its CEO Mamasidikov is a globally renowned blockchain entrepreneur with extensive experience in 72 international fintech projects. Its CFO, Bogorodsky Fyodor, comes from a rich background in traditional finance and has been involved in the issuance of Petro, Venezuela’s official digital currency. He is also the founder of StreamPay S.A., a European financial agency that owns a financial processing platform for issuing cards from Mastercard, VISA, Discover, and AMEX. As the figure shows, CrossFi has many partners from the traditional financial sector.
After establishing connections with traditional finance, CrossFi leverages the open-source nature of crypto to integrate with LayerZero and Sushi, facilitating bridging between traditional and crypto finance.
CrossFi use cases
Limited transaction performance and scalability have been the crucial factors restraining the development of crypto finance. In the context of CrossFi, the CrossFi Chain is built upon the modular architecture of Tendermint. Combined with robust banking processing systems, the CrossFi Chain can handle 1 million transactions per second and offers limitless scalability potential. On top of that, CrossFi provides a range of user-friendly tools and a developer-friendly environment, making it much easier for developers to enter the blockchain industry. Leveraging its powerful performance and convenient development tools, CrossFi is poised to offer a wide array of essential banking services, including the following seven use cases:
1. Cross-border transfers: CrossFi is committed to providing cross-border transaction services, reducing the reliance on Western financial institutions and their systems and protocols.
2. Token issuance: CrossFi offers solutions for token issuance at private, corporate, and governmental levels, covering cryptocurrencies, stablecoins, digital twins, and more.
3. Tokenized banking services and loyalty programs: CrossFi provides solutions for tokenized banking services and loyalty programs, such as helping soccer clubs issue NFTs for their players.
4. Crypto payments and payment card issuance: CrossFi allows payment using cryptos and issues payment cards associated with loyalty programs.
5. Comprehensive acquiring services: CrossFi offers one-stop acquiring solutions using payment cards, POS terminals, and self-service terminals.
6. Corporate crypto acquiring platform: CrossFi provides businesses and merchants with comprehensive services for crypto acquiring.
7. Electronic payment tools and other services: CrossFi offers electronic payment tools and services like ATM network handling, transaction terminals, and e-commerce.
CrossFi token mechanism
CrossFi adopts a dual-token model, comprising the utility token XFI and the governance token XMine (MPX). MPX can have infinite supply and is used for staking to mint XFI. With a governance function, MPX allows its holders to submit proposals and vote. On the other hand, XFI is characterized by high volatility and limited issuance – it will be released within 20 years in five stages. This unique supply mechanism gives XFI distinctive economic attributes and a value evolution path. XFI can find extensive adoption. For instance, it provides open access to all MinePlex products, such as wallets, finance, payments, and markets, to create a universal token for the entire ecosystem. Moreover, XFI plays a crucial role in xApps by being used for liquidity mining and liquidity derivatives staking.
Numerous projects have attempted to bridge the gap between crypto finance and traditional finance. This challenge stems partly from the limitations of blockchain technology and partly from the lack of integration capabilities in traditional finance. With Ethereum’s transition to a PoS mechanism and the development of Layer 2 and blockchain modularity, blockchain performance has advanced significantly. In the meantime, an increasing number of traditional financial institutions are shifting their attitudes toward crypto finance. Therefore, CrossFi, powered by a robust team, is well-positioned to close the divide between traditional and crypto finance.
Source: Huobi Learn
This article came directly from the Hyobi Global blog, found on https://blog.huobi.com/2023/09/01/what-is-crossfi-and-how-it-reshapes-crypto-payment/