Web3 apps today suffer significant barriers to user adoption in the form of poor user onboarding and transaction experience. Almost every encounter your users have with your dApp is a complex transaction. When compared to the user-friendly web2 products that users are accustomed to, dApps can be exceedingly frustrating, such as:
Scalability – transactions are slower on web3 because they’re decentralized. Changes to state, like a payment, need to be processed by a miner and propagated throughout the network.
UX – interacting with web3 applications can require extra steps, software, and education. This can be a hurdle to adoption.
Accessibility – the lack of integration in modern web browsers makes web3 less accessible to most users.
Cost – most successful dapps put very small portions of their code on the blockchain as it’s expensive.
Those are some of the Web3 limitations and that’s also the reason why Biconomy has aimed to resolve the problems, make Web3 products as intuitive and easy to use as legacy web2 products
What is Biconomy?
Biconomy (BICO) delivers a non-custodial and gas-efficient scalable relayer architecture that allows users to enjoy the ease of Web3 apps through a streamlined transaction procedure. The Binance cryptocurrency exchange just released the BICO token, which allows its holders to stake tokens, supply liquidity to receive rewards, and be a part of the governance system.
Outstanding Features
What is the project trying to achieve?
Their goal is to make web3 products as simple to use as legacy web2 solutions. Simplifying the transaction experience will be critical for decentralized projects to gain traction.
Thus, Biconomy is on a mission to simplify Web 3 experiences that will promote mainstream adoption by addressing critical pain points at the crypto transactional layer.
There are various bottlenecks in the transaction experience:
Necessity to pay a gas fee every time the user uses your application. Netflix does not charge you their AWS fees for every time you watch a video, so why should dApps charge you gas fees for every interaction you do?
Users can only pay in ETH, which they may not have at that moment. Or the user may not want to spend their ETH investment.
New Users have a long complicated onboarding process. Non-crypto savvy new users will have to pass KYC, purchase ETH from an exchange, download a wallet, then connect their wallet before they can go any further, which can take days! No one waits for days to try out an application.
Proficiency in complex blockchain technicalities is required such as using MetaMask, signing transactions, understanding gas etc. If the project is on layer 2, they need to know what that really means and be able to change RPC manually.
Volatile and high gas fees further dampen the user experience on your dApp.
Pending and stuck transactions can force your users to wait for minutes and even hours before they can carry on interacting with your application. And sometimes the transaction fails altogether.
As a result, developers who want to fix the above issue would have to design an internal relayer architecture from the ground up. This infrastructure would require active management and upkeep, which would include duties such as:
Monitoring gas prices at all times based on the congestion of the network and the mempool
Keeping track of nonces and managing the transaction queue. This is important because if one transaction is stuck then the next transactions cannot be sent until the preceding one fails or goes through
Managing long pending transactions and automating the process of re-publishing low-fee transactions with a higher gas when network conditions change
Ensuring relayers can scale as transactions increase and enable the auto funding of relayers
Addressing relayers private key management and associated security
For developers to manage ERC 20 payments, they would need to keep a treasury and utilize risk management for the acceptance of ERC 20 tokens for users wishing to pay gas fees.
Making all of this gas efficient will necessitate the use of gas optimization techniques such as gas token management and deployment, as well as transaction batching.
What are unique selling points?
Mexa – Enable Gasless Transactions
Biconomy provides two different approaches to enable gasless transactions for your smart contracts.
Custom Implementation
In some circumstances, it makes sense to employ a customized strategy. For example, where it is critical to eliminate external control or where a standard-compliant function – such as EIP 2612 permits – must be implemented.
They provide contracts for you to use in your dApps to inherit this functionality. Tokens like Dai and USDC (together with associated permission functions) can be supported in your dApp via Biconomy’s Custom Implementation method.
EIP 2771 Standard Implementation
Rather than incorporating meta transaction validation logic within your contract, you can inherit a recipient contract that can receive verified calls from a trusted forwarder. The trusted forwarder follows EIP 2771 by verifying signatures before calling the smart contract with the original user address data attached. It simplifies development and allows you to alter the trusted forwarder address as your needs evolve.
With adherence to EIP-2771 to enable native meta transactions in your contract, you can just inherit a simple contract BaseRelayRecipient.sol and set the trusted forwarder address.
If your smart contracts are unable to be adjusted or upgraded to allow native meta transactions, you can still conduct meta transactions using the smart contract wallet approach. Each end-user is given a contract wallet, and all of his transactions are then routed through his smart contract wallet. Gnosis contract wallet integration is supported by Biconomy.
You can check on how to register Gnosis Proxy Wallet, by clickinghere
Economics
dApp developers must deposit chain native tokens in the dApp Gas Tank in order to enable gasless transactions. On each network, each dApp has its own gas tank, ensuring that Biconomy relayers have enough gas to pay transaction fees and that transactions are relayed smoothly.
Forward – Enable Paying Gas in ERC20
Forward is a solution they created to make it simple for your users to pay their gas fees in ERC20 tokens. They’ve created Forward to work for any Dapp on Ethereum, especially Defi protocols and payments, where team fees are impossible to cover for their users and consumers have the funds to cover gas (just not in ETH).
They’re launching Forward to accept payments in Dai, USDC, and USDT, but they hope to add more tokens shortly. Their smart contracts are quite generic and allow for extremely customized applications. They will, however, debut with a rudimentary feature set that we intend to expand in the near future.
Note: if you’re developing a payment use case with expected average payments below $1, they recommend you consider Layer 2 options
Gasless != Free
If you’ve launched your Dapp/protocol on Ethereum mainnet and are thinking of utilizing Biconomy to pay the gas for your users, this isn’t a reasonable solution. Ethereum gas fees are exorbitant. On December 18th, 2020, Uniswap-related gas fees were estimated to reach over $3 million. In comparison, Uniswap earned $11 million in seed capital.
The majority of Defi use cases where meta transactions eliminate a pain point for the end-user already involve tokens! Examples include :
Depositing stablecoins into a lending protocol
Swapping tokens and more!
Furthermore, the vast majority of ERC20 token transfers on the Ethereum Mainnet involve substantial sums of money – more than 90% of token transfers are worth more than $1,000.
They envisage Forward enabling you to improve UX for these use cases in two ways for your end-users.
Allowing your customers to save their ETH
When using DApps, there will be no blocked transactions!
Because Biconomy relayers handle ETH gas fees in the backend, they ensure that their relayers pay the most optimal gas fees at any given time, ensuring that transactions are never stalled.
When there is a lot of traffic, they automatically detect it and progressively raise the gas prices. This ensures that your customers never overspend. More information on how this works may be found here.
Charging Users
Biconomy accepts ERC20 tokens from users as payment for meta transactions via Forward. They then utilize these tokens to replenish the ETH in our relayers. Biconomy charges users according to the following criteria:
ETH/$PaymentToken Price: We source this from an oracle on-chain, such as Chainlink’s Price Feeds
Fee multiplier: A markup we set to offset risk and take revenue. In the future, we’ll give Dapps the option to set this figure higher and share revenue obtained from meta transactions.
Gas Usage: Much like a standard transaction, we give cost estimates via our SDK based on gas estimates. However, the real gas usage is determined at the point of transaction execution. This figure is calculated within the Forward call and used to charge the user.
Factors affecting gas usage charges within Forward include :
Recipient (your) contract call
Logic within our ERC20Forwarder & Trusted Forwarder contracts
The logic within your payment token’s smart contract
Tokens They Support
Supporting arbitrary tokens is risky given the market’s volatility. As a result, they promote extremely liquid stable coins such as USDC, DAI, and USDT. They want to alter our trading models in the near future to support different types of tokens.
Hyphen – Instant Cross-Chain Transfers
Hyphen enables real-time cross-chain transfers between Ethereum and layer 2s. To begin, we are allowing instant USDT and USDC transfers between Ethereum and Polygon.
We found 0 people related to bico-biconomy, include
Organizations
We found 10 organizations related to Biconomy has True Ventures , Mechanism Capital, Genblock capital, Huobi, rarestone capital , Coinbase Ventures, Eden Block, Binance, Bain Capital Ventures, CoinFund
