For a time people thought that microtransactions were just a matter of making things faster and cheaper. They figured that if it did not cost much to make a transaction and if these transactions went through quickly then microtransactions would just work on their own.. That is not what happened. The basic systems got better. The things that were built on top of these systems had a hard time working well together. The problem was not that things were slow the problem was that microtransactions needed a system to work properly. Microtransactions needed structure.
Kite starts with an idea. It looks at microtransactions in a way. Of seeing them as one time payments Kite thinks of them as a steady stream of money moving around. This stream is made up of people and systems doing things at the same time. When people are involved they usually understand what is going on because they have a sense of what's happening around them.. When computers are doing things on their own they need to be told what to do. That is where Kite comes in with something called identity. Kite uses identity to provide the necessary context for these computer systems. Kite and its hierarchical identity are important, for making these systems work smoothly.
Most systems that are not controlled by one person or company have a way of identifying people. A wallet is a wallet. It. Has money and the power to do things or it does not. This was okay when these systems were new. Now it causes problems.
The problems get worse when there are a lot of transactions happening. When we do lots of things like tiny payments it gets really hard. Imagine thousands of actions happening every minute.
In this case the simple way of identifying people is not good enough. It does not let us show what we want to do or what we are doing it for or how things are related. On the computer everything looks the same even when it is not. Decentralized systems and identity and wallets are affected by this. Decentralized systems have a problem, with identity and wallets.
Kite is trying to fix a problem by setting up a hierarchy. The system does not look at every actor as a person. Instead it lets identities be made up of parts. A main identity can give some of its power to identities and each of these smaller identities is made for a specific job. These smaller identities are not really independent. They get their power from the identity above them. This means that small transactions can happen fast and often without giving someone control that they can use whenever they want. Kite does this so that things can run smoothly and quickly which is what Kite is, about.
The result is that there is a separation between who owns something and what is being done with it. The money stays tied to the person or thing that owns it while the actions are done by identities that are made to be used for specific tasks. This difference is very important when the amounts of money being moved around are small. It happens a lot. Small transactions are not worth much on their own. They are only important when you add them all up. Having a system, with levels of identity makes sure that all these small transactions are added up in a way that makes sense and does not get mixed up.
Things are clear with this system. When something is done you can see which person did it and which person in charge said it was okay. People who are watching do not have to figure out what happened on. The Transparency of this system is visible, from the start. This makes the systems easier to check and easier to trust even when there are a lot of things happening. The Transparency makes it easy to see what is going on.
Kite does not think that every single thing people buy with their game or app needs to be checked. That would be really annoying. Kite thinks that if we know who people are and what they are doing then we do not need to watch them all the time. When the people in charge are, in charge of what they need to be then small things can happen easily and people will still follow the rules.
This way of doing things also changes how we think about scalability. Scaling is not about handling more things at the same time. It is about making sure we can still understand what is going on when there is a lot of activity. A system that can handle a lot of transactions but cannot tell us where they came from or what they are for is not very strong. Kites design, which is set up in a hierarchy helps keep the meaning of transactions as the volume of transactions grows. Kites design is good because it keeps the meaning of transactions clear and this is important, for scalability.
The future of DeFi is closely tied to the long-term vision of DeFi. DeFi is. This change is happening because decentralized systems are moving towards more automated ways of working together. As a result small transactions will become the way of doing things rather than something that only happens sometimes. In DeFi agents will pay for things like data, execution, access and liquidity in small amounts amounts that are too small for a person to even notice. These small transactions will be the basis for economic actions, in DeFi and they will always be connected to something else never happening on their own in DeFi.
In that kind of situation the old way of doing identity is not good enough. It makes systems have to pick between being safe and being flexible. The hierarchical identity system is better because it lets people in charge share their power without losing control. This system works well for things that happen a lot and are not very important. It also makes sure that everyone knows who is responsible for what. The hierarchical identity system is really good at supporting a lot of interactions and it does this while keeping a clear record of who is, in charge of the identity system.
Kite exists because it is really hard to get this balance without putting in a lot of thought. The people who made Kite think about identity in a way. They do not see it as something that never changes. As a way to organize things. This means they look at buying things in games as a problem that needs to be solved in a big way not just something that needs a bit of technical work. Kite looks at microtransactions as something that needs a lot of planning, not a quick fix.
As time goes on this way of thinking helps DeFi systems become more complicated, without getting confusing. DeFi systems can handle a lot of transactions because they are part of a system that knows who is doing something why they are allowed to do it and how what they do affects the entire DeFi system. This makes the small transactions work well within the DeFi systems.
That is the quiet contribution Kite makes. It does not promise to reinvent payments or redefine value exchange. It provides a foundation that lets small actions add up without dissolving into noise. In a future where economic activity becomes increasingly granular and automated, that foundation may prove more important than raw performance ever was.
