Gas Station Networks (GSN)

Gas Station Networks (GSN) are decentralized networks of relayers primarily associated with the Ethereum blockchain. They enable the creation of decentralized applications (dApps) that offer payment for transactions, eliminating the need for users to hold Ether or ETH for gas payments. This simplifies the onboarding process and enhances user acquisition and experience.

Gas Station Networks (GSN) play a crucial role in solving one of the major pain points of using Ethereum – the need for users to have Ether to pay for gas fees. When interacting with Ethereum-based dApps, users typically need to have a certain amount of Ether in their wallets to cover the transaction fees. This can create barriers to entry for new users and hinder the adoption of dApps.

With Gas Station Networks (GSNs), users can bypass the requirement of owning Ether by delegating the payment of gas fees to relayers. These relayers are responsible for paying the gas fees on behalf of the users, allowing them to seamlessly interact with dApps without worrying about acquiring Ether or managing gas fees.

Unlike users, the relayers in Gas Station Networks (GSN) do not charge fees. Instead, they charge the recipient and contract. This allows the relayers to recover transaction costs and generate additional revenue through service fees.

Gas Station Networks (GSN) were originally conceptualized and developed by TabooKey. Over time, they have expanded to include various companies, protocols, and platforms within the Ethereum ecosystem that aim to facilitate user onboarding to Ethereum applications.

Despite Ethereum’s reputation for slower transaction speeds and high fees during network congestion, Gas Station Networks (GSNs) continue to thrive due to their relatively affordable charges compared to traditional marketing, user acquisition, and onboarding expenses.

Gas Station Networks (GSNs) have evolved and improved over time, offering greater convenience. Some Gas Station Networks (GSNs) enable users to prepay the platform or recipient off-chain using traditional methods like credit cards. Each Gas Station Network (GSN) usage deducts from the user’s balance on the recipient platform’s system.

One example of a Gas Station Network (GSN) is OpenGSN, an open-source project that aims to make it easy for developers to integrate gasless transactions into their dApps. OpenGSN provides a set of standardized contracts and APIs that developers can use to enable gasless transactions for their users.

Gas Station Networks (GSNs) prioritize reliability and security. Relayers have a vested interest in processing platform requests correctly, as there are mechanisms in place to penalize them for misconduct. These processes are automated through smart contracts, significantly enhancing reliability and user experience (UX).

For example, in the case of OpenGSN, the protocol ensures that relayers fulfill their obligations by using a mechanism called “negative staking.” Relayers are required to lock a certain amount of cryptocurrency as collateral when they start relaying transactions. If a relayer behaves maliciously or fails to process transactions correctly, their collateral can be slashed, incentivizing them to act honestly.

Gas Station Networks (GSNs) have the potential to revolutionize the way users interact with decentralized applications on the Ethereum blockchain. By removing the need for users to hold and manage Ether for gas payments, GSNs make it easier for new users to join the blockchain ecosystem and experience the benefits of dApps.

Marco De Rossi is the President and Co-founder of HAL. He envisions a future tech landscape where companies and developers can choose to integrate decentralized technologies based on their trust requirements. Marco has a background in Economics and Arts and is an experienced speaker. He has extensive experience in the tech industry as a programmer, digital marketing consultant, and journalist. Marco is also the founder of WeSchool, a leading EdTech company with over 2 million users.

HAL is a Web3 data infrastructure tool that enables developers, protocols, and companies to track, monitor, and trigger data through simple APIs and push notifications. Its mission is to democratize and simplify access to blockchain infrastructure, bridging decentralized and centralized technologies.