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The Top 5 FiatFi Blockchains

FiatFi (fiat + DeFi) is the idea of using fiat currencies in decentralized finance (DeFi) applications. Many blockchains exist that offer FiatFi applications, but some chains are better suited than others. This article will present five blockchains well suited for connecting national currencies to DeFi ecosystems and expanding onchain fiat use cases.

Polkadot aims to be one of the Web3.0 pioneers in the blockchain space, enabling different networks to interconnect their blockchains with each other seamlessly through Polkadot’s relay chain. This vision of multiple, independent blockchains that are interconnected makes Polkadot an incredibly powerful blockchain for FiatFi applications. One of the challenges of Polkadot is the fact that it is developed on Substrate, a language that few developers are familiar with.

After Stellar’s launch in 2014 its purpose as a blockchain is to become an open-source network optimized for payments and asset issuance. In other words, Stellar (XLM) supports digital representations of many fiat currencies, allowing the sending of fiat currency seamlessly across borders. Stellar have worked hard to build partnerships with national banks to offer a multitude of synthetic fiat currencies. The Stellar network currently does not have smart contract functionality, although this is being worked on. Pendulum is building Spacewalk bridge to connect Stellar to Polkadot so that the fiat stabletokens can interact with smart contract powered DeFi.

Cosmos thinks of itself as an ecosystem of “interoperable and sovereign blockchain apps”, where anyone can connect their blockchain to the Cosmos ecosystem through IBC, the Inter-Blockchain Communication protocol. The idea is to be able to connect specialized blockchains together in a streamlined and decentralized manner, similar to Polkadot. Some chains on Cosmos, such as Osmosis, focus on DeFi and liquidity, allowing for FiatFi applications on the Cosmos chain. USDC is coming to Cosmos in 2023 which is a major step forward in stablecoin adoption that will open up fiat-backed use cases.

Ethereum is the 2nd largest cryptocurrency by market cap, the blockchain with the most monthly active developers. Ethereum hosts a large percentage of the total DeFi applications according to with over 3,000 Dapps hosted on its blockchain. Although Ethereum is mainly a hub for decentralized applications (dApps), it can host FiatFi applications through the many stablecoins that it hosts, like USDC, USDT and DAI. The disadvantage of Ethereum is that it can be subject to large gas prices when the network is overused. During its peak network usage, one would need to pay over $50 for a single transfer fee.

Pendulum will participate in a Polkadot parachain auction on December 16th to build its forex-optimized blockchain infrastructure that specializes in FiatFi. From smart contracts capability to seamless integration into banking institutions around the world, Pendulum will enable users to bridge their fiat into the blockchain seamlessly while also enabling it to make use of DeFi protocols. Pendulum is building the Spacewalk bridge: a bridge that can bring fiat stablecoins from Stellar to any parachain found on the Polkadot ecosystem. Get a 10% bonus for joining the Pendulum crowdloan waitlist today:

There are many blockchains that can make use of FiatFi. Each blockchain has trade-offs when facilitating FiatFi applications. Here at Pendulum we have designed a blockchain from inception with the sole purpose of being the blockchain infrastructure for traditional finance. Decentralized forex is coming to DeFi and we are excited to have your support in making it happen! For more details on the Pendulum crowdloan process please check out our auction article and feel free to swing by our Telegram or Discord channels!

Pioneering the internet of fiat. Amplitude is the sister network of Pendulum on Kusama. It will act as a testing ground for Pendulum applications and network parameters and be powered by the AMPE token.

Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.

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Traditional finance infrastructure blockchain. The missing link between fiat and DeFi. Limitless fiat. Decentralized future.