Understanding The Concept of Real-Time Finance with Superfluid

/Real-time/
/noun/
          the present time when an event takes place

Finance is a domain that continues to rule the global economy. And with the internet around, it’s made life easier for many.

Web and Finance? They got together in 1993! Almost 29 years ago, Bloomsberg released its financial portal for spreading news and information on trading prices and stock markets.

The 1990s – 2000s sought a booming, blooming importance in trade – but this was primarily due to the world wide web connecting businesses globally.

Finance too was a benefiter from the internet revolution that took place. As time and science progressed, we’ve come to an era of real-time financing.

But let’s get real. Finance through the web has made life easy to know which market performs well and when is a great time to invest, trade, buy, or sell stocks.

What is Real-Time Finance?

However, what’s this term that’s gaining popularity these days? Real-time finance?

It’s not an alien concept. It’s financial transactions that occur as you read this blog.

In essence, as you speak to your colleague and munch your pizzas slice, you pay them for a pizza party they threw as a contributor. 

In Web 2.0, we have many centralized applications that deal with the same – Paypal, Google Pay, PhonePe, and much more!

Furthermore, we also have bank-enabled online transfers that take not more than 24 hrs to complete. 

Real-Time Finance in Web3

The existence of Web 2.0, the social web, was a more interactive version and let people across time zones and from different countries upload information and share it with everyone.

Also, finance in Web 2.0 dealt with money transfers through bank portals and payment services. Most of it, although real-time, is not decentralized or secure concerning ownership of information.

Web3, the open Web, is about decentralized identities, information ownership, and utilizing protocols to employ transactions and transfers. With innovations and technologies such as blockchains, cryptocurrencies, and distributed ledgers, finance in web3 is decentralized, making everyone’s jaw drop.

So, with web3, financial transactions are more secure, transparent, and easy, apart from being decentralized.

Moreover, web3 is revolutionizing the way finance works in the world, from cryptocurrencies and tokens as collectibles to trading bitcoins for stable coins and holding shares in the metaverse!

Decentralized Finance deals with transactions of cryptocurrencies and tokens. This innovation has revolutionized how finance occurs on the open web with account owners in complete control of their accounts, information, and assets.

Furthermore, many novel DeFi-based applications have come into existence aiding all crypto users to invest and trade carefully.

Blockchain technologies make DeFi (Decentralized Finance) orderly by behaving as a distributed ledger that records the financial transactions between the parties involved.

It is such that the transaction is validated by an anonymous third party, so the validation occurs without bias and gets recorded in the ledger with encryption that secures the block.

Furthermore, these transactions or transaction details cannot change without changing the encryption and the block in its entirety.

Finance in Metaverse is also taken care of by the blockchain technology that runs in the virtual web space.

Consequently, one can buy assets, land, custom avatar goodies, limited items, and much more; and all these transactions are kept as records in the blockchain,

Web3 is constantly evolving the way finance occurs in the virtual web space with many organizations coming up with protocols to integrate into a Smart Contract before it deploys in a blockchain. One such organization is Superfluid.

Role of Superfluid in DeFi

The Superfluid Protocol is a cohort of codes that aid the stream of money continuously through time. It’s here to make real-time finance an amazing experience for everyone in a decentralized environment.

What’s more is that the codes constitute Solidity, an object-oriented, high-level language from Ethereum; i.e., all your Superfluid codes are EVM compatible.

Superfluid has its components such as the Super Tokens which are ERC20 tokens with the Super Agreement functionality, Super Agreements that contain the information of the transfer, Super Apps which are Smart Contract analogs, and the Superfluid Host that connects and coordinates with the Superfluid environment.

Evolution of Real-Time Finance by Superfluid

The Superfluid Protocol evolves the idea of real-time finance in web3 by employing 2 modes of natural time transfer. The CFA & the IDA, ensure real-time financial flow between the accounts concerned.

CFA – Constant Flow Agreement

In the CFA or the Constant Flow Agreement, the sender and receiver abide by the agreement to fulfill the transaction, and the transfer happens at a constant flow rate.

In addition, in the CFA format, the sender has the freedom to create multiple streams and change the flow rate.

Another mode adopted by the Superfluid protocol is the Instant Distribution Agreement.

IDA – Instant Distribution Agreement

This agreement usually involves more than two parties, or such that one sender can send their currency to multiple parties simultaneously.

It’s ever-so-slightly an intricate procedure but ensures that the receivers get their share from a ledger that contains information on who receives how much of the senders’ balance in ratios.

Furthermore, in the IDA format, the sender can alter the agreement to ensure faster or slower transaction completion based on their necessities.

Where does real-time finance come from? The place where web3-based Smart Contracts employ the right procedures to ensure the CFA and the IDA follows the commands accordingly.

Superfluids’ real-time upgradation of instructions, change of streams, flow rates, creation, pausing, or ending of a stream occurs in real time.

Consequently, making finance in a virtual block space easy and secure. Not to forget, these transactions may be about buying/ selling assets in the metaverse, transferring the ownership of NFTs, vesting, or simply trading cryptocurrency!

The applications are endless, and there are so many DApps in the web3 platform running on Superfluid Protocol for streaming money/ cryptocurrency in an exchange for either an asset such as land from the metaverse, NFT, or a service they avail from the open web.

The benefits of employing the Superfluid protocol for a real-time Web3 experience are below:

Secure transactions

Since the transactions occur in the blockchains of the open web, the transfer details and the transactions are in an immutable arena. Thanks to the SHA256 encryptions or its analogs, the blockchain technology is more secure.

Altering details or the transaction itself is impossible due to its high security.

Automated

The Super Apps within the protocol enable automatic updates in the Superfluid host and the operating blockchain. The Superfluid host interacts with the Super Apps and changes the Super Agreements in the release of Super Tokens in a programmed fashion, obeying commands from the Smart Contracts that get written and deployed.

Stability

Financial stability is a real struggle for all. But not to those who employ Superfluids’ codes in their financial life. Superfluid allows you to send money steadily. You could pay for the Netflix subscription throughout the 3 months, slowly, in the duration you avail the service. You could pay $6 million (or, almost 4k ETH) for an NFT in 6 months and not go broke because you’re sending a little every day, every minute, and every second – while receiving from other sources!

Flow Streaming

The Superfluid protocol has not one but two agreements to choose from when transferring your digital currency to the receiver’s wallet. Spoiling you with choice, the protocol ensures the following of rules, and the stream flows accordingly.

One can control the stream by uploading a smart contract with the details of the transfer/ transaction to the stream.

Real-time

Superfluid lives with an ambitious goal – to make transfers related to cryptocurrencies and tokens in web3 super smooth, like a superfluid, in natural time. The protocol ensures that transactions and updates occur almost instantaneously.

Sustainability

You’ve got to consider how much gas fee this protocol would consume to conduct these transactions in a superfluid model. It is super smooth like liquid Helium, sure, but at what cost?

Surprisingly at a very low cost. Employing the Superfluid protocol incurs a very low gas fee for users who stream their digital assets.

Benefits of Real-Time Finance in Web3

Decentralized Finance

Decentralized Finance is as good as a Schrondingers’ concept – old yet evolving into something better all the time.

With the recent advancements in technology, the open web aims to be transparent and safe. And with that, comes decentralized finance where the account holder is responsible for their information.

It ensures no middlemen or centralized institutions are involved in the transaction between two parties except a validator, who validates the transaction and makes it permanent on the digital ledger or block.

Secure

The validated transactions are secure thanks to the SHA256 encryption that accompanies the block containing the details of the transaction.

Moreover, changing one detail on the block will lead to a change in the hash encryption on that particular block. Thus, initiating a cascade of hash changes in the blockchain.

It’s technically immutable and unhackable! Beat that web2!

Transparent

Let’s be clear all initiated transactions are present on the public, distributed ledger – everyone can see it. Validators – anonymous third parties can validate it without bias. Think of fraudulency outside web3! 

Summary

In summation? Real-time finance is the next big thing in commerce and trade. But DeFi in web3 is a step ahead thanks to the revolutionizing Superfluid Protocol.

Decentralized Finance in web3 has impacted everyone for the better. Having secure, transparent financial control over their assets and identity.

But thanks to the Superfluid Protocol, we have real-time finance – transactions, trading, and business in natural time occurring in Web3.

The protocol aids developers inculcate SDK codes in their apps that ultimately confer the ability to stream money from the senders’ account to the recipient’s account in real-time.

The protocol makes streaming money superfluid, super easy, and very safe due to its transparency, security, safety, and stability!
So, when are you starting your DeFi journey with the Superfluid Protocol?