Decentralized Payments Platform Powered by The Fuse Network Blockchain
Launched in 2019, Fuse is a decentralized payment-focused platform whose goal is to enable mass adoption of crypto payments and decentralized finance (DeFi).
What Is The Fuse Platform?
The Fuse platform has three main components, comprising the Fuse network blockchain, the mobile-centric open-source technology stack, and a set of reference DeFi products and tools.
The current financial systems have not yet provided the people globally with access to fast, frictionless payments, attractive financial services, and passive income opportunities.
Fuse, an Ethereum blockchain-based platform, offers a fast robust plug-and-play mobile-centric crypto payments infrastructure at low-cost.
This is especially relevant for developing countries where hundreds of millions of people lack access even to basic banking services. In addition, they also often have to transact using highly unstable fiat currencies, prone to episodes of sudden profound devaluation.
Taking advance of the rise of blockchain technology and cryptocurrencies, which has created the possibility for potentially anyone on the planet to send and receive funds without the permission of any entity.
Fuse provides convenient, mobile-first tools for creating and managing token-powered environments, as well as for onboarding users to those and enabling them to interact.
Making DeFi Work
There are two Fuse companies: Fuse Network Limited and Fuse Labs. Fuse Labs is a for-profit company that is developing a SaaS product called Fuse Charge, or Charge, which is an API platform enabling the smooth launch of payment-focused applications.
Targeting developers wishing to build payment-focused products on the Fuse Network, therefore, developers can register, get their API key and start building using the APIs. Charge will use a freemium model under which certain functionalities will be available for free while access to others will be payable according to the number of API calls.
The FUSE token is the native currency of the Fuse system. FUSE is used to pay transaction fees, voting, staking, lending, and borrowing. A total supply of 300M tokens is distributed as follows:
- ETOP – 8.3% (25M FUSE)
- Early Investors & Advisors & Team – 13.3% (40M FUSE)
- Mesa + Private Sale – 13.3% (40M FUSE)
- Bootstrap Pool – 43.3% (130M FUSE)
- Future Dev Pool – 21.7% (65M FUSE)
As mentioned, as the native currency on the Fuse blockchain, the token is required to pay fees to the network to approve transactions. Token holders can stake Fuse to become a validator with the staking requirement of at least 100K.
In addition, they also have the ability of voting on protocol changes with their staked FUSE meaning validation token holders with higher amounts of Fuse staked can vote more on network upgrades and governance changes.
Otherwise, any FUSE holder can choose one or more validators to delegate any amount of FUSE they wish. They will receive a share of the Fuse block rewards proportional to the share of their stake in the total stake, after paying the minimum 15% fee to the validator.
Payments with FUSE do not require interactions with smart contracts. Therefore, FUSE transfers are potentially faster and less costly in terms of transaction fees.
The FUSE token supply is currently set to follow a mildly inflationary model. As a result, with each new block created every 5 seconds on Fuse Network, the validator who creates it, and the delegators who staked with them will receive the block rewards in newly issued FUSE tokens. This helps to secure the network’s consensus mechanism.
The main reason for choosing an inflationary model at the early development stage was to ensure certain predictability of the flow of revenue for network validators and delegators.
In case they had to exclusively rely on transaction fees as the reward for staking FUSE and validating, it would be harder for validators and delegators to predict their future returns because transaction activity on the network can fluctuate.
It’s easy to see that the relative predictability of validator revenue is an important assumption behind the blockchain consensus theory on which the Fuse consensus mechanism is based.
Not only that but having substantial block rewards also makes it possible to keep transaction fees on the network low, facilitating the adoption of Fuse.
dApp builders on Fuse can integrate Fuse wallets to abstract away complexity, such as the need for users to pay fees or manage private keys. As such, anyone can connect one of the supported wallets like Metamask to the Fuse RPC and start interacting with the network.
One of the most benefits is the ability of users to quickly get fiat currencies converted to crypto using popular payment methods such as Visa or others. Users can buy fUSD or FUSE on Fuse via exchanges (MEXC) or on-ramps (Ramp Network, Xangle).
FuseDollar (fUSD) is a US Dollar-pegged stablecoin that is minted on the Fuse Network blockchain which was created to make cryptocurrencies and DeFi simple for everyday people.
In addition, they can also Fuse Cash, a mobile wallet for transacting with crypto assets. Fuse Cash is like some mobile wallets, but instead of enabling users to store, send and receive traditional currencies like USD and EUR, the wallet allows you to do the same with crypto assets, and more.
The transactions that users make with the Fuse Cash wallet take place on the decentralized Fuse Network blockchain, but this does not mean that users will need to pay network fees to send transactions.
Users won’t need to worry about their public address or that of the person they are sending funds to as the team backed behind Fuse has designed Fuse Cash to make mobile payments easily accessible to communities across the world.
What Makes Fuse Special?
Fuse aims to make crypto payment services have the global ability which is the same as mainstream payment platforms like Visa, Paypal, or Stripe.
However, while traditional payment platform users have to pay high fees for their demand of transfer, the fees associated with sending transactions on the Fuse Network blockchain are very low, at less than $0.01 currently.
Importantly, this is irrespective of whether the fund transfer is an international one, whereas, with traditional providers, international transfers can cost up to 3% in fees.
The Fuse Network blockchain has a global reach. As such, there is no country in the world in which someone cannot send or receive a transaction on the Fuse Network.
Another advantage of payments powered by Fuse for merchants is that there are no chargebacks as transactions sent on the blockchain are irreversible. This eliminates an important cost type for merchants.
Since its launching, Fuse has been offering businesses and developers an infrastructure for plugging crypto-powered functionalities into their real-world use cases. More than a million monthly users visit Fuse network dApps on DappRadar, the world’s leading dApp analytics and tracking site.
Not only that, but if the dApp performs well, it will receive organic news coverage and social media support from DappRadar.
In addition, climbing through the rankings to a top spot will catch more attention to your project.
Closing Thoughts on Fuse
Based on a concept, now a reality, the Fuse platform makes mobile payments easily accessible to communities across the world by seeking to lower the cost, friction, and barriers for companies delivering mobile payments.
With Fuse, users can manage transactional networks using simple, easy-to-use tools.
Fuse is also a no-code platform for communities and businesses to build new economic models, leveraging powerful tools and APIs in a low-entry sandbox. To learn more about Fuse, just click here!