The Fuse platform has three main components, which include the Fuse network blockchain, the mobile-centric open source technology stack, and a number of reference DeFi products and tools.
Current financial systems have not yet provided people globally with access to fast and frictionless payments, attractive financial services and passive income opportunities.
Fuse, an Ethereum blockchain-based platform, offers a robust plug-and-play plug-and-play crypto payment infrastructure focused on low-cost mobile devices.
This is especially relevant for developing countries where hundreds of millions of people do not even have access to basic banking services. In addition, they also often have to make transactions using highly unstable fiat currencies, prone to episodes of sudden deep devaluation.
Taking in advance the rise of blockchain technology and cryptocurrencies, which has created the possibility for potentially anyone on the planet to send and receive funds without the permission of any entity.
Fuse provides convenient mobile-first tools for creating and managing token-based environments, as well as for onboarding users and enabling them to interact.
Making DeFi work
There are two Fuse companies: Fuse Network Limited and Fuse Labs. Fuse Labs is a for-profit company that is developing a SaaS product called Fuse Charge, or Charge, which is an API platform that enables the smooth launch of payment-focused applications.
Therefore, by targeting developers who want to create payment-centric products on the Fuse Network, developers can register, obtain their API key, and start building using APIs. Charge will use a freemium model whereby some features will be available for free while access to others will be payable based on the number of API calls.
The FUSE token is the native currency of the Fuse system. FUSE is used to pay transaction fees, voting, staking, disbursement and borrowing. A total supply of 300 million tokens is distributed as follows:
- ETOP – 8.3% (25M FUSE)
- Early Investors & Advisors & Team – 13.3% (40M FUSE)
- Mesa + Private Sale – 13.3% (40M FUSE)
- Bootstrap Pool – 43.3% (130M FUSE)
- Future Dev Pool – 21.7% (65M FUSE)
As mentioned, as a native currency on the fused blockchain, the token is required to pay fees to the network to approve transactions. Token holders can wager Fuse to become a validator with the wagering requirement of at least 100K.
In addition, they also have the option to vote on protocol changes with their pointed FUSE, which means that holders of validation tokens with higher amounts of staked Fuses can vote more on network updates and governance changes.
Otherwise, any fuse holder can choose one or more validators to delegate any amount of FUSE they want. They will receive a share of the Fuse block prizes proportional to the share of their participation in the total bet, after paying the minimum commission of 15% to the validator.
Payments with FUSE do not require interactions with smart contracts. Therefore, FUSE transfers are potentially faster and less expensive in terms of transaction fees.
The FUSE token offering is currently set to follow a slightly inflationary model. As a result, with each new block created every 5 seconds on fuse Network, the validator who creates it and the delegators who have staked with them will receive the newly issued FUSE token block rewards. This helps to ensure the network’s consensus mechanism.
The main reason for choosing an inflationary model at the initial stage of development was to ensure some predictability of the revenue stream for network validators and delegators.
In the event that they had to rely solely on transaction fees as a reward for FUSE staking and validation, it would be more difficult for validators and delegators to predict their future returns because transaction activity on the network can fluctuate.
It’s easy to see that the relative predictability of validator revenue is an important assumption underlying the blockchain consensus theory on which the Fuse consensus mechanism is based.
Not only that, but having substantial blocking rewards also allows you to keep transaction fees low on the network, facilitating the adoption of Fuse.
dApp builders on Fuse can integrate Fuse wallets to abstract complexity, such as the need for users to pay fees or manage private keys. Therefore, anyone can connect one of the supported wallets like Metamask to Fuse RPC and start interacting with the network.
One of the biggest advantages is the ability of users to quickly convert fiat currencies into cryptocurrencies using popular payment methods such as Visa or others. Users can purchase fUSD or FUSE on Fuse via exchanges (MEXC) or ramps (Ramp Network, Xangle).
FuseDollar (fUSD) is a stablecoin pegged to the US dollar that is minted on the fuse blockchain Network that was created to make cryptocurrencies and DeFi simple for ordinary people.
In addition, they can also Fuse Cash, a mobile wallet for transactions with crypto assets. Fuse Cash is like some mobile wallets, but instead of allowing users to store, send, and receive traditional currencies like USD and EUR, the wallet allows you to do the same with crypto assets and more.
Transactions that users make with the Fuse Cash wallet take place on Fuse Network’s decentralized blockchain, but that doesn’t mean users will have to pay network fees to send the transactions.
Users won’t have to worry about their public address or that of the person they’re sending funds to as the Fuse-backed team designed Fuse Cash to make mobile payments easily accessible to communities around the world.
What makes Fuse special?
Fuse aims to make crypto payment services have the global capacity that is the same as traditional payment platforms such as Visa, PayPal or Stripe.
However, while users of traditional payment platforms have to pay high fees for their transfer request, the fees associated with sending transactions on the Fuse Network blockchain are very low, at less than $0.01 currently.
Importantly, this is regardless of whether the transfer of funds is international, while, with traditional providers, international transfers can cost up to 3% in fees.
The Fuse Network blockchain has a global reach. Therefore, there is no country in the world where someone cannot send or receive a transaction on the Fuse network.
Another advantage of Fuse-powered payments for merchants is that there are no chargebacks since transactions sent on the blockchain are irreversible. This eliminates an important type of cost for merchants.
Since its launch, Fuse has offered businesses and developers an infrastructure to connect crypto-powered capabilities to their real-world use cases. More than one million monthly users visit Fuse network dApps on DappRadar, the world’s leading dApp analysis and monitoring site.
Not only that, but if the dApp works well, it will receive organic news coverage and social media support from DappRadar.
Also, climbing the rankings to a first place will attract more attention to your project.
Closing thoughts on Fuse
Based on a concept, now a reality, the Fuse platform makes mobile payments easily accessible to communities around the world by trying to reduce costs, friction and barriers for companies that provide mobile payments.
With Fuse, users can manage transactional networks using simple and easy-to-use tools.