HomeGUIDEWhat is Alchemy Pay and how does it work?

What is Alchemy Pay and how does it work?

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Indeed, undoubtedly the virtual sphere has, since its emergence, continued to amass millions of projects. Notably, many of these projects, have so far, advanced the ways of doing things, thereby bridging the gap between the real-world and virtual environment. Meanwhile, these projects, have continuously enjoyed increasing adoption, helping users to do virtual interaction, gaming, payment and many more. A good example of this is Alchemy Pay, which serves as a virtual payment platform, allowing users to connect traditional and cryptocurrency economies. This project, just like its contemporaries aims to provide a payment enablement for global consumers, merchants, and developers through its solutions. Without further ado, this article intends to do a background check on Alchemy Pay, with notable emphasis on its functionalities.

General Overview of Alchemy Pay

Worth noting, Alchemy Pay (ACH) runs as one of the leading integrated payment system in the sphere. As designed, the protocol avails an integrated payment solutions to facilitate easy processing of any payments done with fiat and cryptocurrency. By so doing, the Alchemy Pay protocol allows for wider accessibility of trading, transactions, and other related services to individual and corporate users. Meanwhile, just like other notable digital projects, Alchemy Pay has a whitepaper which cites its purposes and functionalities. According to the whitepaper, the integrated payment platform emerged to ease the complicated regular payment methods which has made it difficult to link traditional and crypto payments.

Also, the project, through its whitepaper, lamented the complications obtainable in payment processing platforms owing to the presence of too many intermediaries. This setback, has over time, fermented trust issues and unpalatable hike in transaction charges. However, Alchemy, in its whitepaper, is geared towards addressing the issue.

Alchemy Pay: An advocate of a gradual transition to decentralized sphere

Accordingly, Alchemy Pay believes that “a gradual transition to a decentralized world is more reasonable rather than replacing regular payments with crypto.” To achieve this aim, the protocol wants to facilitate crypto bridging and develop a user-friendly hybrid solution. This, as reported, is geared towards allowing the usage of fiat currencies to foster accessibility to blockchain services. Also, the solution will facilitate the usage of cryptocurrency to access traditional finance services. According to its whitepaper, “Alchemy Pay’s major service is an all-in-one payment network for businesses.” The protocol provides the necessary enablement for its users to execute payments through their respective fiat and crypto mobile wallets.

Interestingly, Alchemy Pay carry out payments on a B2C and B2B standard. It usually support transactions between businesses. Also, it paves the way or make it possible to exchange fiat currencies and cryptocurrencies. With this, the protocol aids banks, willing to offer crypto trading services to their clients. Remarkably, the payment platform also offers the enablement for individual users to purchase cryptocurrencies and fiat. Additionally, it allows them to borrow assets, earn yield, and trade on its network.

Extended focus on decentralization

Alchemy pay focuses on decentralization by aiding access to numerous assets that can be liquidated seamlessly in a cheaper way. These assets are cryptocurrency, tokens, digital assets, fiat, and credit payment. The platform intends to unify merchants and their customers on a unified platform by reducing transaction costs.

It’s imperative to note, that the Alchemy Pay network comprises Five layers according to its whitepaper. These layers are the access layer, solution layer, product layer, core layer, and the blockchain network layer. Each of these layers helps the network to maintain a decentralized posture. They are determined via an open payment consensus protocol that aids Alchemy Pay’s compatibility and consistency with decentralized applications.

Notably, the consensus protocol of Alchemy Pay is compatible with all prominent public chains. The system can integrate Layer 2 networks like Lightning Network to keep up with the requirements of live transactions and prevent the risks of price change. This decentralization facilitates bringing merchants on board, and error settlement by transparently executing smart contracts.

Furthermore, the platform offers value through its quality service delivery and efficiency with decentralized applications. Beyond reasonable doubt, the decentralized posture and compatibility with DApps have contributed to the development and growth of Alchemy Pay. This popularity has as well reflected in the market activity of its native token.

ACH: Alchemy’s native token

Just like many other protocols, Alchemy Pay has its own native token. Identified as ACH, the token runs as an Ethereum token, used to fuel or power the platform. According to the project’s whitepaper, ACH allows for a “comprehensive crypto-fiat transaction infrastructure,” thereby allowing individual and corporate users to exchange their assets without hitches. For every payment or transaction processed on Alchemy Pay, users pay with fiat or its native token, ACH. More so, users are also eligible to accrue ACH rewards for purchases.

Meanwhile, holders of this native token also enjoy governance right. This thus gives them a say in the future of the platform and its numerous solutions. Notably, holders of the crypto are eligible to create new governance proposals, vote on topics that affect them, and directly steer the future of the platform. However, the voting rights are usually distributed based on the ACH holdings by holders. Beyond governance right, the protocol usually conduct opinion surveys and several other non-governance systems, aided by ACH holdings. It was first listed on popular exchange, Huobi exchange around late 2020 before Coinbase also listed the token last year.

Allocation of the tokens

Alchemy Pay’s whitepaper thoroughly explains the way in which the native tokens was allocated. First, 60% of the token was allocated to Utility, serving as tokens reserved to reward users. Also, the protocol allocates 32% to “everyone involved in the development and launch of the ecosystem, from the founding team and its advisors to enterprise partners and backers who believed in and committed resources to the project from the earliest stages.”

Alchemy’s team

Notably, Alchemy Pay has scores of experienced and proficient personalities in its team. One of such is John Tan. The fellow served as the present CEO of the firm. Shawn Shi also serves as the chairman and co-founder of the protocol. Tan possesses huge experience in business development. Shi on the other hand, remains an oriented internet produce entrepreneur. These and many more work tirelessly to ensure the smooth running of the project.

Network Capacity and Safety

Alchemy Pay network has a robust pool of resources that caters to vast applications. The network intends to simplify the complexity of large networks. So, The network provides support for complex account infrastructure including hierarchy accounts, the Whitepaper of the project indicates. Also, it provides support for “payment collection parallel” accounts, payment consolidation accounts, and escrow accounts among others. Similarly, the network is built to seamlessly carry out huge transactions swiftly. This is due to its strong database, storage facility, and structure with the backing of the blockchain.

Another problem Alchemy Pay is aiming to tackle is the trustless system that emanated due to the decentralized nature of almost every blockchain. The decentralized nature of blockchain and cryptocurrency can connect people, even without knowing them. While the technology has been gaining prominence, it has suffered major setbacks because fraudulent people now explore it for their mischievous doings. Therefore, contributing to the general misconception about most cryptocurrency and blockchain projects.

Though, blockchain doesn’t rule out the audience for establishing identifiable connections. So Alchemy Pay provides a Credit score initiative that aims to build trust and connection between users. The platform rates users based on previous transactions and reputation within the network. Thus, giving users to review the previous performance of another user before establishing a connection with them.

Future of Alchemy Pay

The network is more like a game changer that is birthed out of the intention of readdressing the status quo. In achieving this goal, Alchemy Pay provides different services that create a link between the cryptocurrency sphere and traditional financial institutions. It’s fair to say that the project offers what most investors have been yearning for. Being different from other projects has provided Alchemy Pay with an advantage over its peers. Aiding it’s popularity and attracting more users to the network.

Nevertheless, the project has it’s own shortcomings as it requires users to know about cryptocurrency and financial systems. Due to the vast solutions, it offers Alchemy Pay platform is quite complex for comprehension by a crypto newbie. To some extent, the future is bright for the project as it’s attracting huge attention. However, the project is likely to face fierce competition from emerging projects. The project is subject to future additions and removal, yet it must be dynamic to ensure that it keeps up with the existing market trends.

Conclusion

Undoubtedly, Alchemy Pay is one of the fastest-growing projects in the cryptocurrency space. The project is attracting users and its native token, ACH has benefitted greatly from it. To some extent, the future looks promising for both the project and its token, but Alchemy Pay must stay ahead of competition. However, many users outside Alchemy Pay network are not familiar with ACH. Like most stablecoin, the usage of ACH is only prominent within Alchemy Pay. Overtimes, the token has flowed alongside the market situation. During this year’s crypto bear market, ACH also suffered a price dip like most tokens. The strength and future of ACH are tied to the prosperity of Alchemy Pay.

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Olaleye Komolafe
Olaleye Komolafe
Olaleye is a professional reporter with vast experience in web3, cryptocurrencies, and NFT journalism. He enjoys writing about the evolving metaverse sphere and the prevalence in the crypto sphere. Notably, some of his contents have been published in numerous international publications. Away from the crypto world, Olaleye is a political scientist and a lover of football

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