Bridging Traditional Finance and DeFi: Insights from Alex Mamasidikov of CrossFi

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The Genesis of CrossFi

Alex shares that the inspiration behind CrossFi stemmed from a significant issue in the crypto space: many individuals earn cryptocurrencies but face challenges when attempting to use them for everyday transactions. This problem is particularly pronounced among those without access to traditional banking services. To address this, CrossFi was conceived as a platform that enables anyone, anywhere in the world, to utilize crypto for payments, even without a bank account. The goal was to create an intuitive, secure, and decentralized tool that eliminates third-party control. Through extensive research and development, CrossFi developed on-chain transactions and non-custodial payment solutions integrated with traditional financial systems.

CrossFi Chain: A Dual-Architecture Blockchain

At the heart of CrossFi's ecosystem lies the CrossFi Chain, a layer 1 blockchain featuring a modular architecture that combines both Cosmos and Ethereum Virtual Machine (EVM) functionalities. This dual approach enhances scalability and compatibility within the blockchain space. The Cosmos-based component is responsible for consensus, block production, and transaction verification, leveraging Tendermint's consensus mechanism to bolster decentralization and security. Simultaneously, the EVM component facilitates interaction with smart contracts, enabling developers to build decentralized applications (dApps) with ease. This design allows CrossFi Chain to process over one million transactions per second, ensuring high performance and seamless integration with existing blockchain applications.

Innovative Financial Solutions

CrossFi offers a comprehensive suite of services designed to integrate traditional banking with blockchain technology:

• CrossFi App: This multifunctional mobile application allows users to manage both fiat and cryptocurrencies within a unified platform. Features include the issuance of virtual and physical cards, non-custodial payment solutions linking Visa cards to decentralized wallets like MetaMask, and support for cross-border transfers via SWIFT and IBAN. The app also facilitates peer-to-peer transfers by card or phone number and offers competitive currency exchange rates. Notably, every transaction is hashed and traceable through a blockchain explorer, ensuring transparency and security.

• CrossFi Card: This non-custodial on-chain card enables users to spend cryptocurrencies directly from their MetaMask wallets, bypassing third parties and eliminating the need for prepaid deposits. The card is accepted by over 100 million merchants worldwide, allowing users to pay with crypto both online and offline. Additional benefits include 2% cashback on all transactions, free account maintenance, and compatibility with Apple Pay and Google Pay.

Dual-Coin Model: MPX and XFI

The CrossFi ecosystem operates on a dual-coin model comprising Mint Power (MPX) and CrossFi (XFI):

• MPX: Serving as a governance coin, MPX acts as a unit of computing power required to mine XFI coins through staking. It also functions as a payment coin for transaction fees within the Cosmos-based services of the CrossFi Chain.

• XFI: As the primary utility coin, XFI provides access to all decentralized applications, products, and services launched on the CrossFi Chain. It serves as a payment method within the CrossFi App and covers transaction fees across both the Cosmos and EVM layers. The emission plan for XFI spans 20 years, divided into five stages, with emission rates gradually declining to ensure sustainability.

Challenges and Future Outlook

Alex acknowledges the challenges in creating non-custodial instant payment solutions, particularly in implementing on-chain settlements that allow blockchain transactions to be treated equivalently to fiat transactions. Despite these hurdles, CrossFi remains committed to its mission of providing accessible and easy-to-understand tools that allow people to pay with crypto as seamlessly as they do with fiat. Looking ahead, CrossFi aims to expand its services, enhance interoperability, and continue bridging the gap between traditional finance and DeFi, ultimately empowering users with true financial freedom and inclusivity.

For a more comprehensive understanding of CrossFi's innovative solutions and future plans, listen to the full episode on Spotify or Apple Podcasts.

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