Now, what do they mean by “Superfluid”? An easy, continuous cash-flow system all around the clock on the blockchain at an unparalleled speed!

Moreover, in the last two years, we’ve all heard the hype about the Superfluid Protocol. And if we read its documentation, we understand the various applications it was primarily built for.

Some of the listed use cases of the protocol are:

• Recurring Payments – Such as Rent, Salary, and Subscriptions.

• DeFi – Apps in the decentralized web that handle money can use the protocol to ensure real-time payment. In addition, it uses lesser Gas (transaction fees).

• Social & Community – Rewards in community platforms can utilize Superfluid in their dApp to ease the transfer flow. It can ensure the recipient gets the reward in real-time, albeit slowly in their account.

• Gaming – All those in-game purchases necessary for a player to level up or get power-ups to play a game.

But is that all? I don’t think so! There are so many other programs that, when in association with Superfluid, can make the protocol more efficient.

Well, over two years since Superfluid is out, many developers globally have tried to experiment and create dApps for DeFi and Web3.

Let’s explore some of the projects and ideas that have been discussed in the past and explore some future scopes!

Overview of the Superfluid Protocol

Superfluid is a protocol that aids in transferring funds between two parties in real time. It aims to ease the process of cryptocurrency transactions happening on a blockchain.

The protocol achieves this with three main components – The Super Tokens, the Super Apps, and The Super Agreement. Another important piece that’s integral for the smooth execution is the Super Host.

The Superfluid Protocol adopts a multi-chain system of blockchain transactions. Having multiple chains running parallel at the same time ensures quick, real-time payment between parties.

Firstly, the Super Tokens are an extension of the ERC721 or ERC20 token contracts. They are essential and contain Super Agreements functionality within them by default. The two types of Super Tokens – Wrapper Token and Custom Token perform different functions as per the needs of the developer, sender, or receiver.

Secondly, the Super Agreements are agreements containing the details of the token transmission within them. 

Superfluid has two types of Agreements – a CFA: Constant Flow Agreement & an IDA: Instant Distribution Agreement.

Meanwhile, the CFA ensures that pays the recipient and the flow of the asset/token is constant at a uniform flow rate; the IDA ensures the distribution of assets or tokens to the recipients in proportions.

The instructions regarding the transactions get recorded within the Agreement.

However, for an IDA, an Account IDA index is formed that behaves as the intermediate Agreement in supervising the transaction flow.

Third, is the Super Apps. These are Smart Contracts in the Superfluid network. These smart contracts execute themselves in real-time and update the changes within them so that the transactions occur steadily.

In addition, Super Apps have an extra function known as a Call Back. 

Callbacks are codes that occur within Super Apps, bestowed with the function of response. These make the Super Apps more responsive to all the changes in the Super Agreement or events happening in the blockchain.

Finally, the Super Host. It is the CPU equivalent of the entire protocol. The Super Host is responsible to coordinate between the Super Tokens, Super Agreements, and Super Apps.

Superfluid Protocol Applications

The creation of Superfluid was done with some of these applications in mind:

Salary and Recurring Payments

Recurring payments such as salary, rent, and subscriptions are easy to pay through the Superfluid Protocol.

Some instances where the Superfluid protocol works to stream tokens or assets are Zoduid & Superfluid Subscription Service.

Zoduid is a platform to generate revenue flow within and between DAOs, in real time.

The Zoduid software claims to call itself a ‘Zodiac Superfluid Enzyme’. A module just for Zodiac DAOs with an in-built Superfluid protocol for funds transfer and an Enzyme-based vault.

Superfluid Subscription Service is a service wherein a user pays Super Tokens for a service through a Super App and avails of the service even before the payment is complete.

Any service provider can deploy this tool, and the user can pay as per the Super Agreements.

DeFi

Decentralized applications in Web 3 can use the Superfluid protocol to see to it that the transactions happen in real-time. Users get their money in real-time, and it uses lesser gas.

Superfluid Vortex & Hourglass are examples of the same.

Meanwhile, the Superfluid Vortex is a tool that uses Vortex. A custom lingo made just for deploying multiple calls of Super Tokens, Super Apps, or both instantly on the blockchain network.

On the other hand, Hourglass is an application that streams money in real-time to the employees’ debit card wallets (Web2). 

Social & Community rewards

Many Web 3-based community platforms can utilize Superfluids for community awards. Recipients get their payment in natural time, continuously, i.e., it cannot pass off as a scam that one is promised a reward and the reward wasn’t deposited.

Base is a great example of how Superfluid could bind a community together in Web3.

The Base platform is where content creators, NFT creators, fans, and buyers come together. A fan or a user is a subscriber to any of the art the creator creates and allows the creator to monetize through NFTs.

All transactions related to subscriptions and buying occur through the Superfluid protocol.

Gaming

A player can buy their power-ups and gear within the in-game purchases through the Superfluid protocol. They can pay for it slowly, avail of the product instantly, and continue having fun!

Well, nonetheless, there are times it would be nice to have a notification saying, “Hey! Your balance is low in your account!” or something along the lines of, “Your code has an error! Please fix command line 84.”

Can’t imagine? Well, you don’t need to. The dApps already exist! Superfluid EPNS and Toboro do the same thing!

Superfluid-EPNS is a service where the EPNS tells the account user that their balance is going low. It also sends a notification when a new stream starts, a stream updates, or a stream ends.

Although Toboro doesn’t use Superfluid in its code, it tells developers of the errors in their code lines or program in real time when any bugs or issues crop up!

Project Examples

Many projects in the last two years have integrated the Superfluid Protocol into their applications. Many have made a great choice to make decentralized finance as smooth as cake frosting! 

However, in this section, we’re going through some of the most amazing EthGlobal Hackathon projects!

Short-Stop

Showcase link

Made in Solidity, this Superfluid protocol-based program is here to allow users to possess the tokens for a short time as a lending method.

Firstly, a user must deposit some tokens into the Super App (smart contract), to which the blockchain responds and issues a loan of some tokens.

Then, the user returns these tokens when the token price has fallen. After this, the contract switches the new tokens with the old ones that were previously loaned.

Lastly, when the user wants to close the contract of possession of these tokens, the contract swaps the new tokens in the current position with those primarily loaned.

Superfluids’ role here is massive, from real-time streaming of tokens (Super Tokens) to fulfilling conditions as per the Super Apps, and while closing.

Kiwik

Showcase link

Kiwik is a platform for Gamers, Web3-ers, and the folk of the Metaverse alike. Here, folk can buy and sell tokenized 3D NFTs and assets that enrich the user experience!

This NFT marketplace aims to serve a community of creators of NFT, service providers, 3D artists, and metaverse assets at a low cost.

It also serves as a platform for game developers and Metaverse developers to accelerate the building process by optimizing search at a common space.

Superfluid here aids in implementing a “Buy now, pay later” policy for buyers. A user can start using the asset and decide on the cash flow stream. They avail the NFT/ asset access in real-time. This encourages developers of games and metaverse alike to keep pushing through their creativity and lets them pay when they can! 

The real-time money-streaming platform is also employed in receiving money from subscribers who chose the paid Pro subscription plan to the site. The Pro plan provides unique, time-limited assets to work with!

Dehitas

Showcase link

Dehitas is a Decentralized hiring and talent assessment platform. Brought to you with a consortium of tools such as Polygon, Cronos, Superfluid, XMTP, IPFS, Covalent, and more. This software engine is here to change how hiring occurs in Web 3.

Now, this application provides a hiring platform through meeting rooms and talent assessments. The latter is a paid service.

Assessors or companies can buy these tests from the Subject Matter Experts of a certain domain (SMEs). In turn, the SMEs get paid for the assessments they’ve put out there.

So, funds transfer from the assessor to the test creator occurs in real time. The companies will pay the test creator in natural time as and when they buy the tests thanks to the Superfluid protocol embedded within.

Summary

Superfluid is a money streaming platform that’s one of a kind and valuable for its main feature. The main feature of the protocol is that money gets transferred in real-time.

Superfluid-based payments happen in 2 methods with the joint coordination of four components.

The Super Tokens, Super Apps, Super Agreements, and the Super Host.

Superfluid has many use cases such as DeFi, gaming, buying a plot in the Metaverse, and paying salaries!

The post 4 Ways to Use Superfluid Protocol for Real Time Finance and How Dapps Are Using It Today! appeared first on ChainElevate.

Well, you can stop imagining now. The Superfluid Protocol has arrived to do just that! Real-time decentralized finance, as easy as A-B-C!

And since it’s happening on Web3, you control the money flow. Did I mention it is all in real time?

Now, let’s dive in and understand what Superfluid Protocol is all about!

Concept of Real-Time Finance

The concept of Real-Time finance brings a futuristic vision of having a natural time money flow, making finance in Web3 as smooth as frosting.

The vision of Superfluid is to empower individuals of Web 3.0 to easily stream money from their accounts in a flow without hindrance or hesitation. Superfluid achieves this through a multi-chain facility to ensure the simultaneous transfer of funds between accounts.

The continual flow of money/cryptocurrency/token ensures you maintain a balance while making a payment; rather than otherwise. The ‘otherwise’ case is us spending and paying the same instant and being broke the next.

Let’s face it! We’ve all been there! Superfluid is here to make sure your money flows through streams without resistance like liquid Helium!

The Idea of Superfluid Protocol

For anything to exist in the world, one must have a necessity. The birth of the idea of liquid De-Fi is what brought the Superfluid Protocol to existence.

Just as the Helium superfluid flows from its source to its destination continuously, without struggle, the Superfluid Protocol deals with the flow of money/assets from the sender’s account to the receiver’s account almost always.

The Superfluid Protocol aims to smoothen the process of monetary transactions of cryptocurrencies and stablecoins on a blockchain within Web3.

It achieves its aim through 4 main components of the program:

Super Tokens

Super Tokens are extensions of the ERC20 token contracts in the Superfluid Protocol. They are essential to ensure the Super Agreements steadily execute themselves.

Later, the Superfluid Agreements overlook the Super Token transactions occurring in the blockchain.

There are two forms of Super Tokens – A Wrapper Token and A Custom Token.

A Wrapper Super Token is an underlying token that is ‘wrapped’ to attain Super Agreement functionality.

Finally, you end up availing a Super Token that’s executable in the Superfluid Host and can interact with Super Agreements.

A Custom Super Token, on the other hand, doesn’t have a token that disguises itself within a “wrapper”. They are merely Super Tokens with custom functionality within the Superfluid Host. 

In addition, since they are primarily Super Tokens, they have the Super Agreement functionality embedded.

Super Agreements

A Super Agreement is functionality available within the Super Tokens in the Superfluid blockchain.

These agreements contain information on token transfers that will occur on the blockchain.

Two or more parties can allot the instructions and command the code to execute the transfer in an order.

So, Party A can pay Individual B 50 Super Tokens at a constant speed or Transaction Rate. This occurs because Superfluid is a real-time finance protocol.

Money is sent to or received by the individual constantly and in real time.

Sending and Receiving money occurs in two methods in the Superfluid Protocol.

The first method is CFA: The Constant Flow Agreement.

In a CFA, the user or a sender writes a code in the agreement that states to pay the receiver XYZ amount of tokens per second.

Well, the transactions occur every second. The calculation of the transaction rate is per second. 

But, the sender can inform the blockchain to send the tokens on a per month or a per hour basis too. The blockchain calculates and executes the payment on a per-second basis.

It lets you stream tokens from your account to anyone, specifically to the address you mention in the agreement.

The second method is the IDA method: The Instant Distribution Agreement.

In this Super Agreement, you’ve decided to pay multiple parties at once. And the tokens are in distribution to all the accounts you owe.

So, how does the blockchain decide – whom to pay and how much?

Well, you write the command, and it executes it for you.

You specify the total token amount and how it gets distributed within the agreement.

For example, you say you want to give away 100 tokens to 3 parties. You mention Party A receives 30%, Party B gets 40%, and Party C acquires another 30%.

The 100 tokens get distributed as 30 tokens to A, 40 to B, and 30 to C.

These instructions to the blockchain are present within an IDA Index of the publisher (sender).

Super Apps

A Super App is a smart contract on the Superfluid blockchain. These smart contracts respond to changes within the Super Agreement in natural time.

Super Apps behaves as a conjunction layer that supports real-time changes and programmability within the chain.

Callbacks are responsible for the responsiveness in the Super Apps. A Callback is a code that occurs within a Super App. 

These codes deploy on-chain autonomously on-chain as a response to events. These events are nothing but changes in the state of Super Agreements.

Superfluid Host

The central processor of all things Superfluid. The Superfluid Host contract manages, overlooks, and controls the relay of transactions. 

Furthermore, the Superfluid Host is responsible for coordinating with the Super Tokens, Super Apps, and Super Agreements.

Super Tokens, as the foundation of the Superfluid Protocol, contain all the information regarding the Super Agreement.

But, Super Tokens receives this information from the Superfluid Host contract.

However, for Super Apps to occur and function; they must first integrate with the Superfluid Host contract.

After the deployment and registration of the Super App, the Super App avails function to interact with the Super Host contract.

Only post the deployment of Super Apps that the Callback function is active.

And finally, the Superfluid Host contract and Super Agreements. Since the Super Agreements contain information regarding the token flow, any changes or upgrades in the Super Agreement will be designed and registered in the Superfluid Host contract.

Importance of Superfluid Protocol

The importance of the Superfluid Protocol in our lives isn’t as important as Oxygen. And it’s okay to not remember everything at once, come back and read again!

But, to remember, you must first forget. And to forget, you must first know!

So, let’s go through the importance of the Superfluid Protocol in our lives, in finance, and Web3.

Security

Needless to say that this financial streaming protocol runs on the decentralized Ethereum-based blockchain it is known that the transactions occurring are secure and in your control.

You program a Super Agreement or decide when a Callback function deploys on the chain. And most of all, your transactions and streams are in your control.

Stability

Whether an inbound or outbound transfer, the fact that one may have a stable cash flow provides stability and assurity of the minimum balance one must maintain in their account.

Financial stability and freedom to spend, give, pay, and invest are made possible with this Superfluid DeFi protocol!

Interchangeability

The Superfluid Protocol, in association with Connext and Nomad, has introduced cross-chain asset streaming within the blockchain.

Although Superfluids’s multi-chain streaming facility provides the base for the live streaming of digital assets, a cross-chain streaming capability inside the protocol could increase its potential multifold.

Use Cases of the Superfluid Protocol

Discussed below are the multiple use cases of the Superfluid protocol:

Salary

Superfluid makes transactions easy and smooth! In addition, it’s real-time and think about this – wouldn’t it be nice to get your salary every moment of the day for all the work you’ve done instead of waiting until the end of the month? Or your payday?

Exactly! The Superfluid Protocol would let you transfer the salary to your employees constantly – so as an employer, you don’t have to see a series of debits and as an employee, you’re constantly rewarded. Isn’t that super?

Installments

Imagine paying your installments and mortgage for the month as soon as the salary comes in. You’re basically left with holes in your pockets in 2 weeks ensuring all the payments are done.

Well, this time, fret not! You can decide if you want to send your tokens to the receiver in a continuous flow through a CFA or instantly in proportion with a total set amount through an IDA.

This allows your funds to flow to the accounts you owe, slowly, but steadily. You are neither too early, nor too late to the payment because it’s happening throughout the month!

Rentals

Anything that you rent or subscribe to comes with various payment plans. Well, Superfluid allows you to specify how many tokens and you can set the time of the transaction to occur over a day, a week, or a month. 

In essence, you get to decide how much to pay to which service provider and the speed. You pay continuously and get the services continuously. Win-Win, while making sure you don’t go broke in the middle of the month.

DeFi Apps

Superfluid is a DeFi protocol running on an Ethereum-based blockchain. One of the most innovative, exciting, and experimental things a developer could do is to build dApps using the Superfluid Protocol.

Certain dApps such as Ricochet Exchange and The Loan Stream have gained mass popularity for the unique utilization of the protocol and for making DeFi superfluid!

Superfluid-based DeFi applications can ensure not just secure transactions in the stream but make the process smoother to monitor and control the flow of assets.

Vesting

On-chain lending and borrowing often experience a one-time borrow or repay event. The user states that they shall borrow or repay the money to the particular recipient within the blockchain while the miners/validators work through the encryption to validate the statement.

It is a time-consuming process.

Now consider this, you can borrow from A at a constant rate and lend to B at another constant rate; maintaining the financial flow and making the transaction in real time.

The Superfluid Protocol permits this functionality to your stream so you can save your pocket, not go broke, and perform transactions at the same time.

Summary

The Superfluid Protocol is a DeFi protocol that lets you stream money/tokens/assets to multiple parties in real time.

The Superfluid Protocol is beyond awesome and it is all thanks to the 4 pillars it runs on. The Super Tokens, Super Agreements, Super Apps, and the Superfluid Host contract.

In unison, they work together, interact continuously and ensure the financial flow is maintained between accounts.

The importance of the Superfluid Protocol is supported by its many applications globally as many nations kick-start trading and investing in cryptocurrency. 

Moreover, we have more novel dApps that releases to the world – making Life and DeFi a piece of cake! These dApps help you pay your loans and subscriptions, and some even aid you in converting from one token form to another.

What dApp would you build with Superfluid Protocol? Got an idea? Let’s discuss this in the comments below!

The post An Introduction to the Superfluid Protocol appeared first on ChainElevate.