Lily Liu, Chair of the Solana Foundation: PayFi will surpass DeFi and open a new paradigm in finance

On July 8, at the seventh EthCC conference, Lily Liu, the chair of the Solana Foundation, delivered a keynote speech titled "The Emergence of PayFi: Realizing the Vision of Cryptocurrency."

PayFi is a new concept that Lily Liu has mentioned multiple times on social media this year. In her speech at the EthCC conference, she formally introduced her definition and understanding of PayFi.

Lily Liu stated that PayFi introduces a groundbreaking financial concept distinct from DeFi, focusing on settlement time. Timely settlement is highly valuable for speculative trading.

In terms of application scenarios, Lily Liu believes that PayFi supports "Buy now, Pay Never," fundamentally transforming the financial industry. It supports creator monetization, provides invoice financing, manages payment processing risks, and cultivates a global private credit pool on Solana.

The applications of PayFi encompass supply chain finance and the insurance market, pioneering programmable money and surpassing DeFi to open a new paradigm in finance.

Additionally, Lily Liu mentioned that although the initial vision of blockchain has faced obstacles, platforms like Solana are making significant progress in realizing this vision by offering performance, liquidity, and a strong developer community.

Besides sharing the potential of PayFi, Lily Liu also discussed the transformative development of blockchain technology, the value of Bitcoin, and the performance, capital liquidity, and robust developer ecosystem of Solana, emphasizing Solana's unique ability to fundamentally change financial markets and fulfill the initial promises of blockchain.

Lily Liu pointed out that blockchain technology was originally designed for peer-to-peer electronic cash, aimed at enhancing self-custodied digital property rights, programmable money, and open finance. Bitcoin, as a means of storing value and a medium of exchange, highlights this vision.

Blockchain is expected to surpass existing monetary systems through faster, cheaper, and real-time access. It also promises speed, cost-effectiveness, and continuous accessibility. Unfortunately, it has struggled with issues of performance, capital, and talent mobility.

Lily Liu stated that new technology is crucial. While blockchain may not currently be ten times better for everyone than existing systems, it offers unique use cases that go beyond traditional financial infrastructure. Solana is also continuously working on new blockchain technologies.

Regarding performance, Lily Liu expressed her support for Solana due to its high performance. Unlike other blockchains, Solana consistently demonstrates fast transaction speeds and low costs, making it a strong candidate for realizing the initial vision of blockchain technology.

In terms of capital liquidity, she introduced that Solana ranks among the top three in stablecoin trading volume this year, widely adopted as a medium of exchange; and in talent mobility, Solana has become a dynamic and adaptable ecosystem through its strong developer community.

Lily Liu also emphasized three key conditions for blockchain success: fast and cheap transactions, widespread usage, and a strong developer community. She believes Solana is the only ecosystem that meets all three conditions.

Furthermore, Lily Liu shared various use cases of Solana. For instance, the Solana platform supports multiple financial applications, including supply chain finance, payday loans, credit cards, corporate credit, interbank repurchase markets, and the insurance market. These use cases highlight Solana's versatility and its potential to fundamentally transform the traditional financial system.