Former PayPal leaders and Rubycoins founders Jim Nguyen and Nas Kavian, along with Ripple’s former Director of Business Development Wellington Sculley, have teamed up to create Six Clovers, an international decentralized payment network.
So what does that mean?
Six Clovers is a network that can sustain 46,000 peer-to-peer transactions per second and confirm transactions in about 2.5 seconds. The startup is backed by Borderless Capital, BCW Group, Grupo Supervielle and angel investors. The payment network is built on Algorand and “provides a solid foundation to decentralize and scale” their services globally. Banks, merchants and payment providers can use the platform to move and transact in digital currencies across the world, their website states.
Businesses will be able to connect to a decentralized financial system to enable faster, cheaper and more secure payments across borders. Six Clovers says its decentralised Rapid payment network will allow organizations to integrate and enable real-time payments using the efficiency and scale of digital currencies. Rapid uses regulated stablecoins, including USDC, to represent fiat-on-chain, and enables the instant transfer of value between sender and receiver, adds Finextra.
Real-time payments mean customers get instant access to their deposited funds, which Six Clovers says is a competitive advantage.
Decentralized payment networks are systems where the customer and the vendo exchange money without having to trust another third party to keep the network secure and operational.
These online networks are now possible because of access to the internet and blockchains, which by nature allows for decentralization. Traditionally, a bank could be a third-party for payments and transactions With these newer types of systems, they are responsible for the transaction only, but as Six Clovers states, the funds are available instantly.
To compare, before blockchain technology, the most decentralized payments system that existed was cash. Funds were available immediately, and there was no third-party holding — or tracing — of where the money went. Importantly, with a cash exchange the customer and vendor do not need to trust anyone else to verify the transaction as the exchange rests on a tangible asset.
Nguyen told Finextra that their technology will “equip financial institutions, payment providers and merchants with a full-stack, blockchain native payment infrastructure to seamlessly and securely move and transact in digital currencies globally.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Former PayPal Leaders Create International Decentralized Payment Network