With the advent of blockchain technology, many DApps have gained a reputation for user-friendly, custom designs that make transactions easier for users. One such application is Fuse Network Network.
Fuse Network was developed in 2019 to enable entrepreneurs to transform their communities into valuable economic spaces. Here, users can easily create their DApps to digitise their financial transaction processes.
What is Fuse Network (FUSE)
Fuse Network is a project that aims to connect everyday payments to the blockchain, leveraging the processes provided by DeFi. This is a boon for businesses and entrepreneurs willing to transform local digital communities into thriving communities through efficient payment methods.
Fuse Network’s seamless framework allows organisations to focus on reaching and scaling their customers and customers while spending less time and effort on IT. The network is an adapted design for the local community, allowing for easy and low-cost transactions. This is a more efficient alternative to traditional cash or cashless payments.
The goal of Fuse Network is to democratise finance and increase open-source transaction volume.
Fuse Studio is a DApp, an interface for tokenised user operations. The studio runs on Ethereum and Fuse Network. The studio gives users access to various activities, such as building a community with primary conditions through smart contracts.
Users can mint their tokens for their community and share them with their network. The studio has also enabled the launch of new features and services that may not have existed on the web before.
It is linked to the Fuse wallet without custody. The wallet allows transactions to be transferred to the blockchain in real-time. In addition, it supports Ethereum-based tokens that can be used for various functions such as verification and onboarding.
Traditional payment methods are not easy for the masses as they require intermediaries to mediate transactions. The Fuse Network chain is an Ethereum sidechain that replaces the long traditional process and improves the security of transactions.
Currently, the FUSE token supply will follow a moderate inflation model.
A new block is created on the Fuse network every 5 seconds, and the validators who created it and the delegators who staked with them receive block rewards in newly issued FUSE tokens. This is to protect the network.
The reward amount per block is currently set to grow at around 5% per year of total FUSE supply.
The main reason for choosing an inflation model early in development is to ensure some predictability in the flow of income from network validators and delegators. If they had to solely rely on transaction fees as a reward for staking FUSE and validation, it would be more difficult for them to predict their future returns as transaction activity on the network can be very volatile. The relative predictability of validator returns is a key assumption behind the blockchain consensus theory on which the circuit breaker consensus mechanism is based.
Fuse Network Components
The Fuse network consists of three main components:
- 1. Securing the network blockchain. The EVM-compatible public blockchain is the decentralised, permissionless backbone of the Fuse platform and ecosystem.
- 2. Mobile-centric open source technology stack with token payments. This includes the Fuse Studio backend and the Fuse Wallet technology.
- 3. A set of reference decentralised finance (DeFi) products and instruments. These goals are intended to pave the way for the platform’s initial launch.
What is a Fuse Token ($FUSE)?
The network’s utility token is the Fuse Network Token ($FUSE) – an ERC-20 token. It can be used as a medium of exchange, paid to Fuse Network to approve transactions, or participate in its staking mechanism. There are currently 300,000,000 FUSE tokens in supply.
FUSE Token Uses
- Validation: Users must stake at least 100,000 FUSEs to become a validator and help validate transactions on the Fuse network.
- Voting: The Fuse network operates on a DPoS (Delegated Proof of Stake) consensus algorithm, allowing validators to vote on protocol changes and important decisions about the project. This means that maintenance and management of the network are largely community-based. The weight of user votes depends on the amount of FUSE deployed.
- Fees: Users pay the FUSE network a fee for approving transactions, capped at 1 cent per transaction. This creates circulation between network users wishing to validate transactions on the network and validators investing their computing resources and skills in maintaining transactions.
Functions of Fuse Network
- Integrate Digital Payments with Crypto: Fuse allows businesses and enterprises to conveniently integrate digital payments onto their platform through its simple user interface. Digital payments even enable businesses to efficiently offer their goods and services to other customers around the world.
- Simplified Business Processes: Business processes can be automated thanks to smart contracts. You can easily reduce the cost of owning a complex IT infrastructure by simply linking your business data to the Fuse network’s smart contracts.