Crunchfish updates its landing page on the web to provide a high-level description of its better understanding of its groudbreaking, modular, packet-switched L2 architecture delivered by the Crunchfish Digital Cash solution. Further technical detail may be found under the other menu items or in any of our whitepapers. Below is a summary of this superior approach to payments.

The groundbreaking approach: An L2 packet-switched architecture with wallets, terminals and gateways mitigates the inherent vulnerabilities in traditional L1 online payment systems. For online payments it provides resilience as well as load balancing as congestion can be avoided by batch processing during peak load. For offline payments, it brings many new use cases and for cash payments it enables return of change digitally. 

The modular approach: The L2 solution respects the roles and responsibilities of payment networks and payment service providers respectively by clearly separating the L2 wallet, terminal and gateway modules. This brings flexibility, scalability, and healthy ecosystem competition.

The layered approach: An L2 solutions built on top of L1 payment systems provides multiple key design objectives, such as resilience, privacy, scalability, and interoperability, by enabling off-chain processing while still achieving reconciliation and settlement on the underlying L1 payment system. Any L1 Payment Networks can be augmented with a L2 solution. Hybrid architectures, e.g. a CBDC, card network or realtime payment system can be augmented by a L2 solution to achieve maximum scalability, security, and resilience.

The packet-switched approach: Integrating a packet-switched architecture for a payment network ensures survivability in the face of failure, which is especially important for high-volume payment networks as it brings load-balancing to overburdening centralized servers. Bringing packet-switching to the higher-level application layer is just as groundbreaking as when the internet delivered packet-switching to the underlying communication layer.

The privacy approach: Privacy should be offered for all payments, not just offline payments, by using banks and intermediaries to reconcile and pay for their end users by proxy. Offline use cases may provide complete anonymity if that is desired by the financial regulator.

The universal and interoperable approach: By augmentating an underlying L1 payment system with an L2 solution it may work across devices, proximity methods, geographies, and demographics as well as crosssystems, cross-networks, and also cross-borders.

The seamless approach: A hybrid payment system merges transactions that has been cleared offline in L2 with a subsequent L1 online settlement. The future of digital payments hinges on balancing cost, resilience, and seamless integration, bridging traditional infrastructure gaps while gearing solutions for nextgeneration financial landscapes.

The superior approach: Crunchfish shows with its Digital Cash L2 solution a viable way forward with its groudbreaking, modular, and packet-switched architecture that augments any L1 payment system with multiple desired design objectives.

For more information, please contact:

Joachim Samuelsson, CEO of Crunchfish AB

+46 708 46 47 88

joachim.samuelsson@crunchfish.com 

This information was provided by the above for publication on 2nd July 2025 at 09:00 CET.

Västra Hamnen Corporate Finance AB is the Certified Adviser. Email: ca@vhcorp.se. Telephone +46 40 200 250.

About Crunchfish - crunchfish.com

Crunchfish is a deep fintech company pioneering a Digital Cash solution that enhance resilience, scalability and interoperability in payment ecosystems. The patented offline payment architecture supports both payment network providers and payment service providers in both commercial payment ecosystems as well as evolving CBDC initiatives. Headquartered in Malmö, Sweden, Crunchfish drives innovation to shape the future of payments.