Payy has launched a new privacy-focused Layer-2 network built on Ethereum, which makes the everyday crypto transfers invisible to the public by default while still running on popular wallets like MetaMask.
On the public blockchains wallets transactions and balances are visible, and this can be tracked, which leads to the exploit and front running. Payy says that this level of transparency has slowed the adoption of the institutions, Fintech companies, and everyday stablecoin users. So the New layer 2 network makes the transactions private automatically.
How Payy’s Layer 2 Network Works
Payy network works on Ethereum by adding a privacy layer without changing it. When users send the token, the transactions are routed through private ERC 20 pools, which makes it harder to trace the funds, and users can continue using the existing wallet. ERC20 transfers are private by default, and when interacting with the DeFi platform, funds are sent to newly created addresses, which prevents activity linked to the user. These private transactions are stored in the privacy vaults, and the users can choose how much privacy they want, depending on the rules of the apps they interact with.
Payy says that this is designed for the two main groups, such as Institutions and crypto users who value privacy. For the institutions that want to move payments without exposing financial data on-chain and for the users who want privacy and want to avoid managing multiple wallets, Payy says that their system allows privacy-focused transactions, which prevent competitive risks and keeps user experience simple.
Payy already operates a privacy-focused crypto wallet and Visa powered crypto card. This new Ethereum layer 2 network is being launched with an initial base of 100,000 existing users and support from major stablecoin players. Sid Gandhi, CEO of Payy, said that privacy is the final hurdle stopping crypto from going mainstream and argues that global payments cannot move on-chain if every transaction becomes public data.
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