Unity is not just a word! The Blockchain industry is proving that true innovations come when there is unity. A couple of days ago, seven DeFi protocols on Ethereum united to advocate for greater representation in policymaking on decentralized technology. Now, major blockchain projects have formed a Blockchain Payments Consortium (BPC) to compose the rhythm of cross-chain payments.
7 major blockchains for Blockchain Payments Consortium
Yesterday, Solana Foundation, TON Foundation, Fireblocks, Polygon Labs, Mysten Labs, Stellar Development Foundation, and Monad Foundation announced the BPC. The core aim is to create a common framework for standardizing cross-chain payments.
Is the payment consortium worth looking into?
The idea for the payments consortium stems from several significant reasons. The global blockchain payment volume is surging, reaching over $15 trillion by 2024. This staggering number has surpassed the combined payment settlement volume of two major payment solutions — Mastercard and Visa.
The volume of blockchain transactions is increasing; however, many institutions and businesses face fragmented networks, inconsistent regulatory standards, and the absence of shared frameworks for interoperability.
More businesses have started using multiple blockchains for payments — some firms send stablecoin from one blockchain to another, accept payments from a diverse blockchain, and move liquidity between different blockchain networks.
Each blockchain handles data differently and has different compliance frameworks. This can affect interoperability and lead to frictions and inconsistencies, as mentioned. And, BPC was formed to defeat these issues.
Blockchain Payments Consortium is a key innovation
For several fintech firms, crypto communities, and blockchain projects, the payment consortium is a milestone. This is a much-needed innovation, echoed the crypto community on X. “Yes, we’re talking about finally getting everyone to speak the same blockchain language”, wrote TaxAnon, a crypto tax-report service provider.
When a new technology emerges, it is a great time to celebrate and dive in. And, as that technology explodes and its use cases increase, it is commendable, but at the same time, crucial for active groups to introduce a way that will make it more transparent, secure, and interoperable. In short, this is precisely what the seven leading blockchains accomplished by introducing the Blockchain Payment Consortium.
