In the rapidly evolving blockchain and crypto space, Fuse stands out as a pioneering platform committed to transforming financial systems. Fintech Review spoke with Mark Smargon, the CEO of Fuse to understand how their decentralized platform is making waves by providing cost-effective, scalable, and secure payment solutions. With a strong focus on financial inclusion, Fuse aims to bridge the gap between traditional and decentralized finance, empowering small businesses and emerging markets.
Can you give us an elevator pitch for Fuse? What sets your platform apart in the blockchain and crypto space?
Fuse is a decentralized, cost-effective, and efficient alternative to existing payment systems. Our platform is unique as it combines ease of use, scalability, and security, making it suitable for small enterprises and emerging markets that are looking into leveraging blockchain technology. Fuse is committed to driving financial inclusion and creating a decentralized future where everyone has the tools and opportunities to succeed. We strive to build a decentralized financial ecosystem that embodies the core values of Web3.
Since 2017, we have been dedicated to creating a robust and optimized foundation for developers and businesses, enabling them to bypass the constraints of the traditional financial system. By offering a full spectrum of services, from invoicing to marketing, stablecoin support, and on/off ramps, we aim to foster a true network effect. This approach ensures that small and medium-sized businesses (SMBs), emerging markets, and individuals seeking better financial solutions can connect and thrive globally.
What inspired you to start Fuse, and what has been your journey leading up to becoming the CEO?
Fuse was born from the belief that the future of commerce and finance is online. I’ve been building internet companies since I was 14, convinced that everything would eventually move online. Witnessing the transformative power of technology, I recognized that traditional payment systems are fragmented and expensive, disproportionately affecting small businesses and emerging markets. Fuse aims to revolutionize online value transfer with a decentralized network that empowers small businesses and promotes financial inclusion.
Blockchain technology is rapidly evolving. Where do you see the most significant impact of blockchain in the financial services sector?
Blockchain’s most important influence on the financial services industry is its ability to democratize access to financial services. By eliminating intermediaries, blockchain technology can lower costs, boost transparency, and improve security. In payments, it enables real-time transactions at a fraction of the cost of traditional systems.
Furthermore, the use of smart contracts and decentralized applications (dApps) is transforming everything from lending and borrowing to insurance and asset management.
How are you adapting to current trends and innovations in decentralised finance (DeFi)?
We try to position Fuse at the forefront of DeFi trends and innovations. We are moving to a modular design with zkEVM to improve our scalability and privacy. Our connection with Polygon CDK will increase transaction throughput while lowering expenses, making our platform more efficient and user-friendly.
In addition, we are focused on interoperability and resource optimization to ensure that numerous decentralized financial services and applications integrate and collaborate seamlessly. These enhancements will strengthen and broaden Fuse‘s capabilities as a DeFi platform.
Fuse.io aims to bring DeFi to the masses and simplify crypto payments. What do you see as the biggest challenges and opportunities in simplifying crypto payments for mainstream adoption?
The most difficult problem in simplifying cryptocurrency payments for widespread adoption is bridging the gap between complicated blockchain technology and user-friendly experiences. Education and awareness are crucial, as many potential users are unaware of blockchain’s benefits. However, this obstacle also creates an opportunity.
We can onboard millions of new users by creating intuitive interfaces, providing extensive teaching resources, and utilizing traditional payment mechanisms. The opportunity is in facilitating a smooth transition to decentralized finance, allowing users to reap the benefits without a steep learning curve.
Are there any emerging technologies or trends in the fintech space that you are particularly excited about? How do you see them influencing the future of finance?
I am particularly interested in zero-knowledge proofs (ZKPs) and their potential to improve privacy and security in financial transactions. We’ve seen that technology come a long way the past few years, especially when it comes to the development of decentralized identification systems and interoperable blockchain networks.
I see ZKPs as crucial in shaping the next stage in decentralized finance by making transactions safer, more private, and linked, laying the groundwork for a genuinely decentralized and inclusive financial environment that bridges CeFi and DeFi. Of course, for that to happen, we need to see greater integration and interoperability between blockchains, protocols and platforms.
Fuse partners with various companies in Africa and Asia. What’s the specific way to enter these for web3 companies? What’s Fuse’s next plans for the expansion?
We are pioneering the first Web3 business subscription model, offering all-inclusive fixed pricing that centralizes costs traditionally associated with decentralized services. Unlike existing solutions, Fuse provides a low-cost, open-source blockchain subscription service optimized for payments. Our goal is to empower small and medium-sized businesses (SMBs) and emerging markets through interoperability, connecting them to the blockchain space. The Fuse Network is tailored for B2B2C applications, simplifying processes, and enhancing transparency for end-users.
For unbanked and underbanked communities in Asia and Africa, this means an easier entry into decentralized finance where they can access the financial services they need. Fuse comes at a moment when the natural evolution of DeFi has reached a stage where we need a fusion of decentralized wealth storage, utilization and transfer accessible to everyone. As much as the sector has advanced since 2020, there is significant fragmentation between services, protocols, wallets, exchanges, platforms and Dapps. And this is without getting into the gap between decentralized products and centralized institutions. The bottom line is that within DeFi, we’re still seeing layers of intermediaries and third parties involved to complete a simple transfer of funds or digital assets.
Fuse is the missing link inside this complex ecosystem of decentralized and centralized services, geared towards enterprises that want to enter the blockchain space, novice and advanced crypto users alike.
Fuse just released the Consensus Contract on its Flash Testnet. How will the transition from Open Ethereum to Nethermind impact the Fuse Network’s performance and security?
Transitioning from Open Ethereum to Nethermind is a major step for us. This upgrade will significantly enhance the performance and security of Fuse Network. Nethermind’s efficiency will help us stabilize transaction fees and increase throughput, ensuring that our users experience faster and more reliable transactions.
Nethermind introduces crucial Ethereum Improvement Proposals, which are vital for addressing potential security vulnerabilities. This move is all about providing a more secure and robust environment for users, businesses and developers. By reducing volatility and lowering transaction costs, we aim to offer a network that is not only more stable but also more cost-effective for everyone involved.”
What specific benefits will users experience from the Consensus Contract and the overall upgrades to the Fuse Network?
Users can expect a more decentralized and stable platform with the capacity to handle increased demand without compromising on reliability. One of the standout benefits is the incredibly low transaction fees, which are as minimal as $0.0001. This reduction in costs makes Fuse network an attractive option for small businesses and emerging markets, allowing them to utilize blockchain technology without the financial burden.
The transition to a zkEVM Layer 2 network using Polygon’s CDK will further enhance scalability and interoperability. This means even faster transactions and seamless interactions with other networks, improving the overall user experience. We are also providing users the ability to customize solutions, such as peer-to-peer programs and loyalty schemes, which are tailored to their specific business needs. Lastly, our focus on global connectivity, without the hindrance of international exchange fees, ensures that businesses can connect and operate globally with ease, expanding their reach and capabilities