Pelago — Encrypting the Real World Through Payment Links

4 min readMar 22, 2024

Pelago provides a convenient means of utilizing cryptocurrency for payments in both the real world and on a global scale. Committed to integrating decentralized liquidity with real-world assets and applications, harnessing the potential of blockchain technology, Pelago offers users secure, efficient, and privacy-protected payment solutions.

In this application, cryptocurrency holders can walk into any store and Tap & Pay using Pelago at existing Visa and Mastercard POS terminals, just like using Apple Pay®. Pelago serves as a bridge between decentralized and real-world realms, creating a more inclusive, transparent, and streamlined financial ecosystem for users.

As a decentralized payment aggregator, Pelago addresses key market issues, including the difficulty of balancing efficiency and privacy in on-chain payment infrastructure, hindering widespread adoption in financial transactions. Cryptocurrency payment gateways mimic centralized structures, inheriting custody risks and regulatory scrutiny, prompting concerns over user fund security and autonomy.

Significant disparities between Web2 and Web3 payment infrastructures hinder seamless transactions across technological environments, complicating user experiences and limiting widespread adoption of cryptocurrency payments. Merchant liquidity remains locked in payment processes, yielding no returns, discouraging participation in the DeFi ecosystem and inhibiting decentralized market growth.

Pelago presents a series of innovative solutions to address current payment system inefficiencies, privacy, compliance, and liquidity issues. These solutions not only facilitate the integration of traditional payments with DeFi but also construct a more efficient, secure, and inclusive financial ecosystem.

  • Intuitive Interface and Simplified Operational Flow

Offering a user-friendly interface and simplified operational flow, enabling seamless interoperability between users and merchants.

By employing intuitive design and simple steps, the barrier to entry is lowered, enhancing user experience.

  • On-Chain Decentralized Liquidity Pools

Utilizing on-chain decentralized liquidity pools to alleviate regulatory concerns and enhance user trust.

Independent of centralized traditional gateways, ensuring transaction transparency and security, reducing regulatory risks.

  • Zero-Knowledge Proof Technology Ensuring Transaction Privacy and Security

Adopting zero-knowledge proof technology to ensure transaction data privacy and security.

Verifiable transaction information without revealing specific content, effectively safeguarding user privacy.

  • Incentive Mechanisms for Liquidity Provision

Merchants and users incentivized through liquidity provision to participate in the DeFi ecosystem.

Incentive mechanisms attract more participants, increasing system liquidity and activity.

  • Smart Contracts replacing Traditional Payment Gateways

Smart contracts replacing traditional payment gateways, enhancing transaction privacy and security.

Pelago Payment ID (PID): Key to Decentralized Identity

In the Pelago decentralized payment network, Payment ID (PID) plays a crucial role. As the first layer of the system’s technology, PID provides a secure, trustworthy, and highly scalable decentralized identity foundation for encrypted payments, while also being a core part of the Pelago ecosystem’s digital identity.

PID is an identity system that conforms to the Decentralized Identifier (DID) standard of the World Wide Web Consortium (W3C). It provides a unique and secure digital identity representation for payment institutions, merchants, and individuals, used for self-identification and verification within the Pelago network.

Traditional centralized identity systems suffer from numerous risks such as single points of failure and privacy breaches. In contrast, PID adopts decentralized design principles, achieving identity decentralization and self-ownership, fundamentally eliminating potential security vulnerabilities.

How does PID work?

PID operates based on blockchain’s decentralized identity recognition mechanism. Payment institutions, merchants, and individuals can create their easily memorable PID via encrypted wallets, maintaining complete control over their identity and adding real-world information, supporting decentralized authentication and authorization functions to prevent sensitive information leakage. Other participants in the system can query publicly available documents to verify the validity of the institution’s identity, achieving peer-to-peer identity authentication and trust transfer.

Although Pelago is still in its early stages, the platform has designed various payment options, supporting popular options, cryptocurrencies, and fiat currencies. It will be the simplest way to use cryptocurrency for everyday payments. With more ecosystems joining, the decentralized design ensures Pelago’s scalability, such as e-commerce website cryptocurrency payment plugins, credit card top-ups, gift card exchanges, supply chain finance, and participation in Crypto.

Integrating Reality with Virtua

As a bridge between Web2 and Web3, Pelago enables seamless transition to the Web3 ecosystem for traditional enterprises, merchants, and individuals, providing secure and fast payment solutions for both small-scale payments and cross-border transactions. It significantly lowers the barrier to entry for cryptocurrency while supporting various digital assets, maximizing compatibility and availability, constructing an open payment network that integrates virtual and real-world assets.










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