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Gas-free transactions will revolutionize Web3

Scalability is one of the major barriers within decentralized financial (DeFi) applications and has created huge barriers to entry. Closely related to this is the issue of high gas tariffs, which is still a major pain point for newcomers to the Web3 space. When Web3 goes mainstream, these gas costs will become minimal. For the user, the experience will be completely gasless as it is on Web 2.0 applications. Due to the lack of scalability and network congestion, gas rates have skyrocketed, allowing users to transact even more on the blockchain. According to the YCharts report, the average gas price on Ethereum at the time of writing is around 146 Gwei. The high cost of gas tariffs has become a financial nightmare for regular users in the Web3 space. This has led to the search for a solution that improves the decentralized financial ecosystem and makes it more usable and accessible. Solving the scalability problem So the question becomes what steps can we take to minimize gas costs? While there are a number of strategies that can be taken to lower and reduce gas costs, most of them can be narrowed down to building another layer 1 blockchain or improving Ethereum. Another area that has been heralded as a way to address this problem is layer-2 scaling solutions. an underlying blockchain protocol to improve scalability and efficiency. These layer-2s use math and cryptography to securely validate transactions without sending so much information to the blockchain. It’s like putting together a thousand transactions for the price of one, without sacrificing (too much) security. There is a suite of layer-2 protocols that allow Ethereum users to reduce their costs to an absolute minimum. Some examples include zero-knowledge Rollups, Optimistic Rollups, and Plasma. Each of them has different tradeoffs. Some are faster than others, some are more rock solid than others. Gas costs are a thing of the past. Once the scalability issues are resolved, gas costs become much more negligible. The figures below show that the gas tariffs on L2s are considerably cheaper. The next question becomes: why does the user have to pay for gas at every step? This is where gasless metatransactions come into play. Meta-transactions take a step forward by allowing different users to transact on the public blockchain without transaction fees. The developer of decentralized applications (DApp) sponsors the negligible gas on behalf of the user. This builds a more seamless UX as users don’t need to understand the inner workings of different blockchain platforms and the dynamics of gas tariffs. Related: Ethereum Fees Are Shooting Up – But Traders Have Alternatives Meta Transactions Use Cryptography That Requires Users To Sign And Verify The Transaction. The main difference here is that an external relayer removes the complexity by managing the transaction, paying for the gas and, finally, completing the transaction by sending it to a receiving address. Revolution of the web3 space: solutions to gas problems There There are a number of strategies in addition to the solutions mentioned above that can be used to reduce or at least reduce gas costs: Scheduling transaction times: Ethereum gas prices are known to fluctuate within the day due to different events happening in the chain and in different parts wake up from the world. As a result, there are certain times of the day when gas prices are likely to be significantly lower. One way to lower gas rates would be to inventory these times and target them when making trades. Paxful research has found that the busiest and most expensive times are between 8 a.m. and 1 p.m. (EST), with most of Europe and the United States awake and working during that time. In comparison, midnight to 4 a.m. (EST) has proven to be a lot less crowded and ultimately cheaper. Using Stable Off-Chain Payment Networks: Xpal Off-Chain Payment Channel is developing a payment solution that will enable instant transaction approval in seconds through the lowest fee through its share gas system. This is done by charging a nominal fee that is proportional to the payment amount. Relayer infrastructure: The future of Web3 is multichain and gasless. The different chains, layers-two and scaling solutions will all be seamlessly combined to ensure scalability and speed. In an ideal world, the everyday user would be removed from blockchain headaches. They shouldn’t have to search through all the different chains and layers-two to use a DApp. It would just happen in the background. A multichain relayer network is the best solution to enable this vision. As explained in the diagram above, the user forwards their request to a relay node (executor) which then manages the transaction on behalf of the user. The DApp can then refund this relay node with the gas fee for the transaction so that the user doesn’t have to pay the gas fee or manage other transaction parameters to make it successful. With such infrastructure, users can connect their wallets to any DApp, have instant access to their funds through any chain or L2/rollup, and then enjoy a gas-free experience anywhere. Conclusion: the future of Web3Web3 will only succeed in using Web 2.0 faster or even completely replacing it if users can communicate freely without paying high gas prices. Everything we’ve seen in DeFi so far has literally just surfaced. We got a glimpse of what the future holds for us. UX will play a critical role, allowing us to scale and onboard new people. We predict a future where transactions will simply become free, instant and secure. Take, for example, when you watch a movie on Netflix, you just pay the subscription fee without having to deal with operating costs or hosting costs. Simplifying Web3’s user experience lowers the barrier to entry, ultimately making it more open to a wider user base. This article does not contain investment advice or recommendations. Every investment and trading move carries risks, and readers should do their own research when making a decision. The views, thoughts and opinions expressed here are those of the author only and do not necessarily reflect or represent the views and opinions of CoinTelegraph.Ahmed Al-Balaghi is the CEO and co-founder of Biconomy. Before that, Ahmed worked for Jabbar Internet Group, a Dubai-based venture capital firm. He also founded Encrypted, the largest podcast in MENA devoted to fintech, blockchain and crypto assets. Before that, Ahmed spent time as a blockchain researcher in Shanghai, China. He has also worked for institutions such as Citibank, Dow Jones and Ofgem.
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