Solana, established in 2017, is a blockchain network developed to host decentralized and scalable applications. The high-performance network Solana is used for a wide range of use cases such as finance, NFTs, payments, and gaming. PayPal USD (PYUSD) is a stablecoin established and handled by Paxos Trust Company on PayPal’s behalf. The scalability and speed of the Solana network make PYUSD accessible, cost-effective, and quick, facilitating a wide range of use cases. PayPal USD is currently available on the Solana network, providing developers with a new stablecoin option for their projects.
This article will delve into the aspects of PYUSD and how to build with PayPal USD on Solana.
What is PYUSD?
PayPal USD (PYUSD) is a stablecoin created by Paxos Trust Company. Its main objective is to maintain a stable 1:1 value with the U.S. dollar, offering the crypto industry a legitimate and safe digital variation of the U.S. dollar. PayPal USD seeks to change digital payments by combining the payment expertise of PayPal with the technological benefits of blockchain networks such as Ethereum and Solana.
In the beginning, PayPal USD was established on the Ethereum blockchain and later it expanded to the Solana blockchain on May 29, 2024. Solana is one of the popular blockchain networks in the industry well-known for its quick adoption, featuring a robust ecosystem with hundreds of thousands of daily transactions and thousands of active developers.
The wide adoption of the Solana network ensures that the PYUSD transactions will be completed quickly with minimal transaction costs, regardless of transaction size.
How to Build with PYUSD on Solana?
Follow the below steps to start building with PYUSD on the Solana blockchain.
Obtain PYUSD
The first step is to get PYUSD. You can buy, sell, and utilize PYUSD using PayPal or Venmo wallets. Anyone using the PayPal ecosystem is able to buy the PYUSD.
You can acquire PYUSD with fiat money from major Solana wallets like Phantom and other crypto exchanges. Using the PYUSD faucet, developers can test their PYUSD on Solana’s Devnet.
Understand the Technical Aspects
To integrate PYUSD into an application, it is crucial to know the technical aspects of PYUSD. The mint address of PYUSD is:
2b1kV6DkPAnxd5ixfnxCpjxmKwqjjaYmCZfHsFu24GXo
This mint address identifies the PYUSD token on the Solana blockchain. You can consider using the Solana Explorer to get the information about the mint account.
Integrate PYUSD
PYUSD can be accessed in several Solana wallets and exchanges like Phantom and Crypto.com.
It is relatively easy for developers to integrate PYUSD into their Solana projects. The open-source nature and integration of TEs of PYUSD allow developers to seamlessly integrate it into their applications, facilitating acquisition, spending, and transfer of PYUSD within their applications.
The Solana and PayPal documentation offers in-depth information on integrating PYUSD and Solana-based tokens.
Why Build with PYUSD?
PYUSD allows developers to combine the payment expertise of PayPal and the technical expertise of Solana. Let’s look at the use cases of PYUSD.
Cross-border P2P payments: You can send PYUSD to eligible recipients across the world with a Solana wallet, with transactions completed almost quickly and at reduced cost.
Business-to-business transfers: The programmable feature of PYUSD allows developers to create their own services to enable instant, cost-effective transactions with minimal technological requirements.
Microtransactions: PYUSD enables microtransactions at low cost on the Solana blockchain.
Global payouts: PYUSD eliminates the need for a complicated network of multiple banking systems, currencies, and digital wallet systems, facilitating global payouts.
Role of Solana’s Token Extensions in the Development of PYUSD
Token extensions (TEs) on Solana are essential tools that enhance the functionality of the Solana Program Library (PSL) Token program. TEs are certain modules that can be applied to a coin, offering certain features and functionalities.
Use cases of Token extensions on Solana are the following:
- It allows merchants to maintain the confidentiality of transaction details while maintaining the visibility of other transactions for regulatory purposes.
- Using PYUSD, developers can modify programs during token transfers for merchants and individuals.
- Both senders and receivers include details of transactions with payments, creating a user-friendly experience for daily and business transactions.
These TEs facilitate certain benefits for PYUSD.
Enhanced functionality: Token extensions allow PYUSD transactions to remain confidential for users. However, it will be transparent for regulators to balance confidentiality and compliance.
Transaction fees: The transfer fee extension facilitates the establishment of transfer fees, which can be utilized for numerous purposes, including network maintenance and revenue generation.
Regulatory compliance: With the help of permanent delegate extension, designated authorities can manage PYUSD tokens for regulatory compliance.
Account management: There is a mint close authority extension, which facilitates the deactivation of the mint account and retrieval of resources, ensuring the management of PYUSD tokens.
Also Read: Unlock Fast Bitcoin Transactions: How To Use The Lightning Network?
Conclusion
Integrating PayPal USD (PYUSD) on the Solana blockchain presents significant opportunities for developers. With its speed, low costs, and broad accessibility, PYUSD can enhance various financial applications and contribute to the growing digital economy. As financial technology continues to evolve, leveraging stablecoins like PYUSD will be essential for creating innovative payment solutions that meet modern consumer needs. You can simply build with PYUSD on Solana by following the steps, such as obtaining PYUSD, understanding the technical aspects, and integrating the PYUSD with the Solana blockchain.