Since its birth in 2019, Elrond has made a name for itself with its appetite for conquest. The company is steadily expanding its crypto solution to all areas of the real economy. Starting as a “simple” layer 1 protocol boosted with sharding, it has quickly built a complete and efficient ecosystem.
First with its native cryptocurrency eGOLD, then with its wallet DEX Maiar, Elrond lays the foundations of a crypto trading infrastructure. From there, strategic partnerships and acquisitions follow in a hegemonic frenzy. True to its goals, Elrond announced today the acquisition of the world’s number one crypto payments company: UTrust. The consequences could well be colossal.
UTrust joins Elrond’s stable and strengthens its leadership position
Needless to say, the Elrond Network blockchain technology claims to exceed 100,000 transactions per second, at negligible costs (around $0.001). While not all is perfect yet, a theoretically extremely robust and efficient layer 1, intended to serve as the backbone of a new low-cost, fast and highly efficient financial system.
With the acquisition of UTrust, Elrond is setting the tone for e-commerce in 2022. The protocol is now shifting into high gear to serve as the foundation for the most widely used crypto payment solution on the planet. But as is often the case with Elrond, if the objectives are clear, the maneuver hides a revolutionary innovation to say the least.
The best payment method 3.0 will be crypto
The first part of the evolution that this merger proposes is simply commercial. It’s about making payments faster, cheaper and more secure. Using the Elrond blockchain technology, they will now be fully and natively digital. This is a prerequisite for offering users, wherever they are on the planet, a tool that meets the requirements of a globalized trade. And much more …
“In the best case scenario, payments should be made almost instantaneously, on a global scale and at a negligible cost. Our primary goal is to enable merchants around the world to achieve this. The second product we will be working on with the newest member of the Elrond family is Merchant Yield, a DeFi-like payment processing solution that will provide a return to merchants, rather than requiring them to pay a percentage of the transaction value. The implications are hard to overstate.Beniamin Mincu, CEO of Elrond Network.
A payment method that turns user fees into a new revenue stream
In a traditional economic paradigm, the idea may seem far-fetched. Indeed, how can a cost be a profit? But for us crypto-addicts, the equation is not as intractable as it seems. The statement of Elrond’s CEO gives us a clue. The payment processing would be similar to a DeFi protocol.
While we await the technical details, speculation is rife regarding this new revenue stream for merchants using UTrust’s solution, and its newly developed “Merchant Yield”. It is likely that with the P.O.S (proof of stake) architecture of the protocol, fees could be collected in a native cryptocurrency, and then delegated to secure the network. Or reinvested in a dedicated pool with a return in stablecoin.
“The idea of turning payments from a fee into a revenue stream seemed as crazy as it is to anyone thinking about it for the first time. After exploring this idea with Elrond, we not only realized that it was possible, but that it was the inevitable future of payments. So we decided to join forces and accelerate the implementation of DeFi payments.”Sanja Kon, CEO of Utrust.
With Elrond blockchain technology, Utrust is opening a new chapter in Internet commerce for merchants around the world. With Utrust, Elrond is now positioned as the global leader in crypto payments, and continues to lead the charge to upgrade our centralized economies to a freer, more lucrative and fairer version 3.0.