As a seasoned researcher who has witnessed the evolution of blockchain technology and its potential to revolutionize finance, I am genuinely excited about the upcoming launch of Safenet by Safe. Having worked extensively with traditional payment networks like Visa, it is refreshing to see the inspiration drawn from such systems for a decentralized solution in the crypto realm.
Next year, the multisignature wallet and digital asset platform known as Safe plans to unveil a blockchain network for processing transactions instantly. This will enable fast cross-chain payments even before funds are withdrawn from a user’s account.
At Token2049 last month, Safe co-founder Lukas Schor shared with CryptoMoon that their recently announced decentralized transaction processing network, Safenet, was influenced by VisaNet – the network behind Visa’s payment system.
VisaNet facilitates global transaction processing instantly, providing a safety net for merchants by ensuring their payment is confirmed even before the funds clear multiple verifications and are finally transferred, which may take several days.
Just like in the crypto world, we aim for instant transaction processing without delays, even during mining. Cross-chain operations are often slow, so our goal is to enhance speed and scalability.
❇️ SAY GM TO SAFENET ❇️
We are here to move the world’s GDP onchain.
🌐
— Safe (@safe) December 3, 2024
As a researcher delving into this fascinating realm, I’ve come across an interesting perspective by Schor. Rather than being a standalone blockchain, Safenet appears to function as a bridge or connecting layer between various existing networks. This ingenious design allows users to engage with multiple blockchains using just one account, simplifying the user experience significantly.
According to Schor, the network will run on processors, and when it’s set to debut in Q1 of 2025, there will be a single processor handling cross-chain account management and liquidity operations.
Schor mentioned that there are numerous safety measures occurring within Visa that we aim to mirror, such as verifying for fraudulent activity or ensuring compliance.
In simpler terms, Safenet can momentarily secure assets within a user’s account using ‘smart account resource locks.’ This allows processors to carry out transactions while deducting the user’s balance through a cryptographic confirmation of execution.
Schor explains that an open system enables additional processors to participate and deliver services throughout the transaction cycle, which may include aspects like security, compliance, automation, subscriptions, linking on-chain balances with off-chain services, and providing necessary liquidity for user service.
Schor says one use case could be under collateralized loans.
He pointed out that if you possess a reliable processor that can interact directly with the user, it’s possible for this processor to lend you money without requiring any collateral.
Schor suggested that users might be able to establish a deal analogous to a mortgage agreement, as found in conventional banking systems, with financial institutions.
In simpler terms, when making a purchase, a user receives the necessary funds, but they also pledge an asset as security to ensure they can repay the loan.
If I’m looking to enjoy the advantages of owning a CryptoPunk, but my funds are limited, I only have 20% for an initial payment, and the processor can help me with the rest,” is how it might be rephrased in a simpler, more natural way.
Safenet intends to become operational by 2025, starting with an early access version (alpha) in the first quarter. The launch of the validator network is set for the second quarter, and it’s expected that the initial version of the protocol will be released either in the third or fourth quarter of 2025. Additionally, a co-processor open liquidity network will also be introduced at this time.
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2024-12-04 09:04