A variety of use cases are made possible by Solana’s speed and scalability, which also makes PYUSD affordable, fast, and accessible. Developers now have a new stablecoin option for their projects using PayPal USD available on Solana. Building with PYUSD is now easier than ever because to the Solana Devnet faucet’s quick access to test tokens, thorough developer documentation, and connectivity with the larger Solana ecosystem.
What is PYUSD?
Paxos Trust Company is the one who issues and maintains the PayPal USD (PYUSD) stablecoin on PayPal’s behalf. With a steady 1:1 value with the US dollar as its benchmark, it aims to provide the cryptocurrency market with a reliable and secure digital representation of the US dollar. PYUSD aims to transform digital payments by combining the technology advantages of blockchains like Ethereum and Solana with the payments expertise of PayPal.
PayPal announced on May 29, 2024, that PYUSD, which was first introduced on the Ethereum blockchain, has now expanded to the Solana blockchain. Renowned for its swift uptake, Solana is a prominent blockchain that has hundreds of active developers and a strong ecosystem with millions of daily transactions.
This high-performance network supports thousands of transactions per second at median costs of fractions of a penny, with block times of about 400 milliseconds. It is built for speed, scalability, and cost-effectiveness.
Because of its universal accessibility, PYUSD transfers settle almost instantly and incur little fees, regardless of the size of the transaction. This feature makes it scalable for big user bases and available to anybody with an internet connection anywhere in the world. Thanks to this multichain method’s accessibility and flexibility, customers can choose the blockchain that best suits their needs.
Why build with PYUSD?
PYUSD combines the technical know-how of Solana with the payments expertise of PayPal. Once exclusively available on Ethereum, the stablecoin is now accessible on Solana as well, providing extremely economical, round-the-clock, and nearly instantaneous settlements with a global reach. Among PYUSD’s use cases are:
1.P2P payments across borders:With a Solana wallet, one can send PYUSD to qualified recipients anywhere in the world. Transactions settle relatively instantaneously and incur very little fee.
2.Transfers between businesses:Because PYUSD has programmable features, companies can create their own services that enable almost instantaneous, affordable cross-border transactions with little in the way of technology.
3.Microtransactions:PYUSD facilitates microtransactions in real-time and at a low cost on Solana. With PYUSD, Web3 merchants such as nonfungible token (NFT) marketplaces and blockchain-based gaming platforms can integrate with fiat bank accounts using digital native currencies.
4.Global payouts: PYUSD removes the need for a complex network of multiple banking networks, currencies and digital wallet systems, simplifying global payouts
Advantages for developers in building with PYUSD using token extensions
Using token extensions from the SPL Token Programme, developers on the Solana blockchain may fully realise the potential of programmable money and assets. In the past, this required a tedious merging of multiple codebases and protocols.
With enabled token extensions, developers can now manufacture tokens with native access to the entire spectrum of programmability features. Developers may tailor their tokens to meet the unique needs of their apps by using this streamlined approach, which allows them to enable or disable various features on a per-feature basis.
Furthermore, TEs provide PYUSD with enterprise-level security and dependability since they are well-established, certified, and proven extensions of the industry. Because these standards are reusable, developers can create and test apps more quickly.
Step-by-step on how to create PYUSD on Solana
The steps below will help to understand how interested developers can start building with PYUSD on Solana.
Step 1: Obtain PYUSD
Getting PYUSD is the first step in working with it. One can buy, sell and use PYUSD on the PayPal or Venmo wallets. The PayPal consumer protection policy is available to anyone using the PayPal ecosystem to buy PYUSD.
Alternatively, one can acquire PYUSD using fiat money from major Solana wallets such as Phantom and crypto exchanges like Crypto.com. Developers can test PYUSD on Solana’s Devnet via the PYUSD faucet
Step 2: Understand the technical details
PYUSD mint address: To integrate PYUSD into an application, developers can use the PYUSD mint address: 2b1kV6DkPAnxd5ixfnxCpjxmKwqjjaYmCZfHsFu24GXo
On the Solana blockchain, this mint address uniquely identifies the PYUSD token. To get details of the mint account, one can use a Solana explorer.
Token extensions: PYUSD is built on TEs, which denote the next iteration of the Solana Program Library standard and offer out-of-the-box compliance frameworks, reducing development time. TEs roll out new methods to boost token functionality.
Essential features like minting, transferring and freezing tokens were part of the initial tokens program, but the TEs have brought in additional features such as confidential transfers, extended metadata, custom transfer logic and much more (as explained in the above section).
Step 3: Integrate PYUSD
PYUSD is accessible in major Solana wallets and on exchanges, including Phantom and centralized platforms like Crypto.com. Additionally, eligible users can buy, sell and use PYUSD within the PayPal ecosystem, including PayPal and Venmo.
PYUSD is simple to purchase and incorporate into Solana projects for developers. Test PYUSD can be accessed in a sandbox setting for development and testing using the Solana Devnet tap. Before delving further into the development process, they need also comprehend token extensions in order to understand how to construct with PYUSD.
Due to PYUSD’s open-source design and smooth connection with Solana’s TEs, developers can easily incorporate PYUSD into their apps, making it simple for users to acquire, spend, and transfer PYUSD inside them. Because PYUSD is compatible with the Solana ecosystem, which includes a variety of wallets and platforms, it is easily available for digital transactions for eligible consumers.
In addition, the Solana and PayPal developer documentation provides detailed information on integrating PYUSD and Solana-based tokens. Developers are encouraged to utilize the provided icon resources when integrating PYUSD into their applications
In conclusion, PYUSD has exciting potential as new use cases emerge and the coin adjusts to shifting regulatory landscapes. The growth of PYUSD is highly probable in the realm of real-world assets, or RWAs. PYUSD can contribute to increased liquidity in a generally illiquid real estate market by facilitating seamless, nearly immediate transactions in the RWAs space.
PYUSD is expected to be impacted by the way stablecoin laws are evolving in the US; it will have to adjust to ensure compliance. Interoperability across chains is another essential element for PYUSD’s development. Expanding into new blockchains will assist the stablecoin in fostering greater flexibility and accessibility.
Future developments of PYUSD’s security features and smart contracts will also play a critical role in its evolution. By improving smart contract capability, new features like automated compliance and more complex financial instruments may emerge.