A few days ago, Sun Lilin, the founder of PlatON, attended the "2023 Hong Kong Web3 Carnival "Global Web3 Payment Innovation Forum"", gave an opening speech on "Web3.0 Cryptographic Payment and Clearing System" on the spot, and officially released theWeb3.0 encrypted payment and clearing system based on PlatON - TOPOS.

The evolution of the payment system is mainly accompanied by changes in currency value carriers and certificate verification methods. Under the background of today's Web 3, digital currency provides the technical background conditions for completely unifying information flow and capital flow, but the current payment architecture is still It has only developed to the early stage of payment with point-to-point transfer as the core settlement rule, and has not yet formed a set of clearing and settlement standards that can cope with various complex payment scenarios and various participants.

"We believeIn the Web 3 world where the blockchain is the underlying platform, the unification and non-custodial flow of information and capital flows will eventually be completed.At present, CEX is actively promoting the exploration of using digital currency as a currency for payment. The realization of this direction is more similar to Alipay's centralized wallet logic. It is relatively mature and has lessons learned in terms of cost and efficiency. But this approach also destroys the two characteristics of the digital currency itself, non-custodial; the unity of information flow and capital flow. However, if it is executed based on the whole chain transaction, there is currently no set of clearing rules and standards on the chain that can correspond to the distribution of benefits for multiple payment participants and complex payment scenarios. "Sun Lilin said, "So we thinkIn the future, there will inevitably be a set of chain-based clearing and settlement system standards.first level title

What is TOPOS?

The full name of TOPOS is "Tokenized Open Payment Operating System", which is a tokenized open payment operating system.

TOPOS is an open payment operating system based on the bottom layer of the blockchain, and adheres to the multilateral architecture of OPEN LOOP. Anyone can assemble the final payment service on this ecology through the underlying ability to call the blockchain provided by TOPOS. Merchants and users can hold Web3 assets in a non-custodial manner, and rely on the standards developed by acquirers, wallet institutions, and Tokenized Money payment scenario standard setters to complete payment and exchange value. Just like the VISA/MASTERCARD system, each participant in the payment assumes different roles in the process of completing the payment to complete their own work and obtain benefits.

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The payment core of TOPOS: Tokenized Money

The payment core of TOPOS is based on Tokenized Money, and the entire payment life cycle of Tokenized Money is called encrypted payment.The underlying system of TOPOS will provide corresponding components and contracts for cryptographic payment. At present, the technical verification based on ZK Proof as the authorization certificate has been completed, and the product that uses homomorphic encryption to encapsulate the one-time payment certificate for the one-dimensional code payment scenario Development and contract development for push payment scenarios such as secured transactions and code-scanning transactions based on signatures. In the near future, TOPOS will open these components to acquirers, e-commerce platforms, wallet partners, etc.

Tokenized Money is composed of 3 levels:

The core is to lock in value,Tokenized Money is not a certificate of unlimited authorization, so there is a definite payment value for an execution behavior. This value can be stable currency, CBDC, BTC, ETH, or any settlementable asset with consensus.

The outer layer of value is the payment logic,Any payment has a matching transaction logic, including delivery conditions, clearing rules, time constraints, scenario constraints, etc., which can effectively avoid the uncontrolled circulation of settlementable assets, and provide payment on the underlying agreement. Constraints to help acquiring institutions, wallet institutions, etc. to control risks.

The outermost layer is the authorization mechanism,The security of payment is guaranteed by the authorization mechanism, and the protection of the authorization mechanism mainly relies on cryptography in the Web3 world, and different authorization methods, such as ZKProof, HE, and digital signatures can fulfill the authorization requirements of different scenarios, and are the most common To adapt to the different needs of the receiving end.

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Compliance Security and TOPOS Economic Model

As a protocol layer service, TOPOS mainly relies on cryptographic components and smart contracts. Therefore, from the perspective of compliance, TOPOS splits the overall contract structure, and transfers assets outside the chain to the chain. Relevant contracts and value exchange-related contracts are independently split into different components, and different participants are supported to participate independently. This approach is conducive to the compliance of participating institutions of different components according to their own territories.

To ensure the security of the entire system, encrypted payment is of course not enough. To make the payment ecosystem work, a large number of cryptographic components and basic service support are required. With the technical support of the LatticeX Foundation, TOPOS uses the MPC method in the design of the settlement currency issuance, which not only helps the issuer define the internal issuance approval process, but also meets the needs of API docking. In terms of contract design, it not only provides compatibility with current mainstream ERC 20 /EIP 712 /EIP 1155 /EIP 2612 /EIP 3009 and other implementations, but also adds the function of auditing contracts before issuance to help issuers better manage reserve assets, and more Facilitate auditing of assets.

It is worth mentioning that,Through an open payment ecosystem, TOPOS can reduce the original high cross-border payment fees by at least 60%.In the cross-border payment process of VISA/MASTERCARD, merchants not only have to bear high handling fees, but users also have hidden costs in the process of currency exchange. The overall payment cost may account for more than 5% of the transaction amount. The distribution of these revenues by card organizations accounts for a large proportion, which explains why card organizations have the highest valuation in the entire global payment ecosystem. After adopting the open architecture of TOPOS, TOPOS will only occupy a small part of the income, a part of which will be allocated to the Creator of the Tokenized Money protocol, and the other part will be paid to the underlying blockchain platform of PlatON as GAS. Of course, the cost of this part is In some scenarios, it can also be paid by the acquirer or Wallet. Generally speaking, the cost of this part is extremely low.The main income will be distributed more to payment service providers, that is, acquirers and wallet institutions, so that these institutions that ultimately serve merchants and users can obtain greater ecological benefits.

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Out  Of  many，One

Over the years, PlatON has always been unique, and has always insisted on deep cultivation at the bottom of the technology. The official debut of the payment and clearing infrastructure TOPOS can be said to be a perfect turnaround of PlatON from the underlying technology to the upper-level business. In the future, TOPOS will be committed to inviting global developers, card issuers, acquirers, wallets, and other third-party professional service organizations to participate in the construction of a multilateral payment and clearing architecture based on multi-party consensus under the framework of global regulatory compliance. In the world of Web3, VISA is a decentralized federal system.

As Sun Lilin said,If we can sum up the core concept of TOPOS in one sentence: what is "VISA of Web3" and what is a new generation of global clearing and payment infrastructure"? You can borrow the motto on the national emblem of the United States: "Out Of many, One. ""Unity into one".