- Two former PayPal employees launched a decentralized global payment solution.
- The platform, Six Clovers, uses stablecoins to make instant transfers.
- Also, the platform offers refunds unlike most blockchains.
Also, the blockchain aims to provide an alternative to the current SWIFT protocol which can take days to execute transactions. To this end, Six Clovers CEO Jim Nguyen noted,
A lot of the infrastructure that we are using today was built during the 1970s and ’80s…and for a lot of folks who are maybe born in that generation, it’s OK. But the internet native folks are now in the workforce and they’re like, I get my email in real-time, I can refresh my webpage in real-time, why does my money have to take a couple of days to get there?
To fix this, the platform leverages blockchain technology to accelerate peer-to-peer transfers using stablecoins. Thus, enabling instant global transfers between financial institutions, merchants, and payment providers. Also, Six Clovers founders Nguyen and Nas Kavian built the platform on Algorand to leverage its vast ecosystem.
Notably, the Six Clovers protocol uses stablecoins to represent fiat on-chain. Thus, the platform is able to make instantaneous global transfers. In addition, Six Clovers can process about 46,000 transactions per second.
In addition, the platform, unlike traditional blockchains, offers refunds. This feature makes Six Clovers a good alternative for payment systems like PayPal, Visa, and Mastercard.
Nguyen cited the growing crypto adoption trend as the leverage that made the system a viable payment solution. However, cryptocurrencies are notoriously volatile. In fact, the crypto market crashed in May and is yet to recover. Some analysts are even calling the current slump the start of a bear cycle, for instance, JP Morgan. For this reason, the co-founders opted to use stablecoins like USDT to facilitate Six Clovers transfers.
Of note, stablecoins leverage the advantages of blockchain technology while bypassing most of the disadvantages. This is because stablecoins are pegged against other assets like fiat currencies (dollar, pound, euro), or commodities (gold, etc) making them less volatile.