Facebook’s team under Libra’s digital wallet (Novi) division published a paper introducing a new payments network. FastPay is part of the second ACM conference on Advances in Financial Technologies (AFT’20).
Novi scientists propose a transaction settlement system called FastPay. They claim that this can settle cryptocurrency payments and support retail payments in fiat currencies. In detail, FastPay is Byzantine Fault Tolerant (BFT) real-time gross settlement (RTGS) system.
According to the authors, they have already achieved over 80,000 transactions per second with 20 authorities. This achievement surpassed the requirements of current retail card payment networks like Visa and Mastercard.
In fact, FastPay can support up to 160,000 transactions per second on 48 shards. This is seven times faster than the peak transaction rate of the Visa payments network. Furthermore, it can support extremely low-latency confirmation for physical point-of-sale (PoS) payments. In addition, it also provides an extremely high capacity to handle retail card network volumes.
To evaluate the throughput and latency of FastPay’s implementation, they conducted experiments on Amazon Web Services (AWS).
Prior to this, the Libra project co-creator David Marcus led operations of Facebook Financial (F2). This venture is responsible for handling all payments and commerce opportunities of the multinational company. Included on the list are Facebook Pay, Novi, and Libra. Later on, FastPay will join the bandwagon.
On the other hand, Libra stablecoin must be fully-regulated before gaining support from financial leaders, specifically the G7. As for Visa, it continues to penetrate the crypto world as crypto exchanges like Huobi and Coinbase integrate support for debit card payments.