The evolution of payment methods runs through the history of human economic development, from the earliest exchange of goods, to cash, bank cards, and online payments, which have become increasingly popular in recent years. Every technological innovation has improved the efficiency and convenience of transactions. Today, with the rise of blockchain technology, Web3 payment is becoming a new form of payment. In this issue of TRON Knowledge Bureau, we will take you to understand what Web3 payment is.
Web3 payment is a payment method based on blockchain technology and cryptocurrency, relying on smart contracts, decentralized applications (DApps) and cryptocurrency to complete transactions. It does not rely on traditional financial institutions, but transfers value point-to-point through the blockchain network, making transactions faster and more efficient.
The Web3 payment architecture involves multiple key participants, including cryptocurrency issuers, public chains, exchange agencies, and payment platforms. Cryptocurrency issuers are mainly stablecoin issuers (such as Tether and Circle); public chains (such as Ethereum and TRON) provide underlying technical support and are responsible for recording and verifying transactions; exchange agencies are responsible for currency circulation and conversion; and payment platforms cover centralized and decentralized solutions, providing users with convenient payment methods.
Although the traditional payment system has matured, it still faces challenges such as high transaction costs, transaction delays, and financial exclusion. For example, cross-border payments often involve multiple intermediaries, with high fees and long arrival times, while in some regions, insufficient infrastructure prevents a large number of people from using financial services. These problems have driven the exploration of more efficient and low-cost payment methods, and Web3 payments have emerged in this context.
Compared with traditional payment methods, Web3 payment has the following core features:
Decentralization: Control is dispersed among users, a single point of failure will not affect the entire system, and intermediary costs are reduced.
High transparency: All transaction records are publicly stored on the blockchain, which has strong traceability and significantly reduces the risk of fraud.
High security: Encryption technology and smart contracts are used to ensure transaction security, reducing the risk of attacks on centralized databases in the traditional financial system.
Interoperability: Supports cross-chain interaction, and different blockchain networks can share information, improving the flexibility of using encrypted assets.
With these advantages, Web3 payment is gradually becoming a new global payment method, not only showing great potential in emerging markets, but also providing more possibilities for the development of the digital economy.
At present, Web3 payment has been widely used in many scenarios such as on-chain native payment, cross-border payment, e-commerce, game economy, salary payment and daily consumption. In these scenarios, TRC 20-USDT has become one of the most widely used stablecoin payment methods due to its fast transfer speed and low cost. In Latin America, TRC 20-USDT has become the preferred payment tool for many users daily consumption. For example, in 2024, the Uquid platform supports the use of TRC 20-USDT to quickly recharge Argentinas SUBE card, bringing more convenience to local peoples public transportation.
At the same time, more and more traditional financial giants are beginning to explore the possibility of Web3 payments. For example, PayPal launched the stablecoin PYUSD pegged to the US dollar in 2023 and used it for payment, transfer and other businesses to promote the connection between cryptocurrencies and legal currencies. Visa has expanded the settlement capabilities of stablecoins through cooperation with Circle and conducted a pilot on the Solana blockchain.
These attempts show that Web3 payments are gradually being integrated into the mainstream financial system and accelerating the practical application of digital assets. However, it is also worth noting that different countries and regions have different regulatory requirements for Web3 payments. If related projects want to conduct business in specific markets, they must comply with local compliance requirements and apply for corresponding licenses. I believe that with the continuous improvement of policies and regulations and the continuous improvement of user experience, Web3 payments will not only become a payment method accepted by more people, but will also become an indispensable part of the global financial system.
