Safe’s Safenet wants to bring a Visa-like payment network to crypto
Multi-signature wallet and digital assets platform Safe is preparing to launch its blockchain transaction processor network next year, allowing for faster on-chain payments before funds leave a user's account.
Safenet co-founder Lucas Schor told Cointelegraph at Token2049 last month that the decentralized transaction processor network Safenet — which went public on December 3 — took inspiration from Visanet, the payment network powering Visa.
VisaNet offers global payment processing, allowing the merchant fast transactions with payment guarantees until the funds pass through a series of checks and are sent days later.
“We want the same experience in crypto at the same speed, so we don't even want to wait to mine transactions,” Schor said. “When you cross-chain, it takes a lot longer. We want to balance that.
❇️ Say GM for Safenet
We are here to move the world's domestic product along the chain.
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— Safe (@safe) December 3, 2024
According to Schor, SafeNet is not a blockchain, but a connecting layer of existing networks that allows users to connect to any blockchain with a single account.
According to Shore, the network is powered by processors, and by the time it is scheduled to launch in the first quarter of 2025, there will be one processor supporting Crosschain accounts and liquidity functions.
“There are a lot of security processes happening at Visa that we want to replicate, such as fraud or incomplete checks,” Schor said.
Safenet temporarily secures assets with smart-asset asset locks and allows processors to execute transactions, cutting off the user through cryptographic enforcement verification.
According to Shore, the open system allows multiple processors to join as part of the transaction lifecycle and provide services including security, compliance, automation and subscriptions. The onchain balance connects to off-chain services and required liquidity.
Backed by the SAFE Token, there will also be incentives in the ecosystem. Validators may receive a portion of the fees as a reward for approving transactions and including funds.
Source: Lukas Schor
Schor said one use case could be under-served loans.
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“If you have a processor that's more likely to be a trusted processor, they can give you money with some direct user interaction with that processor, and they can — they don't need anything beyond a warranty,” he said.
According to Shore, consumers can enter into arrangements similar to how they would work out a loan with a bank in the traditional financial system.
A user is given the money needed to make a purchase, along with collateral to guarantee payment.
“Say I want to profit from CryptoPunk. I don't have enough money to buy CryptoPunk. I've got 20% for the down payment, and the processor can give me this up front,” Shore said.
Safenet plans to go live in 2025, with an alpha version in Q1, a verification network launch scheduled for Q2, and version 1 of the protocol is tipped to go live in Q3 or Q4 2025 with a co-processor open liquid network.
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