Understanding Gasless Transactions in Blockchain

In the world of blockchain, you've likely heard that transactions typically involve a fee, commonly referred to as the gas fee. However, some blockchain networks, Layer-2 protocols, and decentralized applications (Dapps) offer users the ability to transact without incurring any gas fees. These are known as Gasless Transactions.

This article will delve into the concept of gasless transactions, exploring the technology behind them, how they function, and their practical applications.

The Essence of Gasless Transactions

Gasless transactions, also termed meta transactions, represent an innovative application of blockchain technology. Unlike conventional transactions, users of gasless protocols are not required to pay a gas fee.

This is achieved through the implementation of a third-party gas fee pool. Typically, the protocol owners allocate a certain amount of cryptocurrency to this pool, which is then used to cover transaction costs. As users interact with the protocol, the gas fee is automatically deducted from this pool.

From the user's perspective, it appears as though they are utilizing the protocol without incurring any transaction costs.

The concept of gasless transactions has proven to be an effective marketing strategy for crypto projects operating in highly competitive environments.

It's worth noting that Layer-2 solutions employ alternative methods to reduce gas fees.

The Mechanics of Gasless Transactions

Gasless transactions are executed in two primary stages. First, a user initiates the transaction, which is then forwarded to a relayer. The relayer subsequently pays the gas fee and submits the transaction to the blockchain.

Stage 1: Initiation and Relay

In the initial step, when a transaction is created, typically by a user of a Dapp or protocol, it is sent to a relayer. This relayer can be either an automated smart contract or a manual user.

On the Gate network, a standard similar to EIP-712 is used to create such relayed transactions.

Stage 2: Gas Payment

In the second stage, the relayer covers the gas fee and transmits the transaction to the blockchain. Following this, the usual validation process occurs, and the transaction is finalized.

An example of a blockchain implementing gasless transactions is the Torus network.

Applications and Future Prospects

NFT Distribution

Gasless transactions find widespread use in various applications. One of the most popular use cases is in NFT minting. Several NFT projects whitelist users and cover the gas fees on their behalf, enabling them to mint airdropped NFTs at no cost.

Real World Asset Tokenization

Gasless transactions may become essential for projects involving Real World Asset (RWA) tokenization. Given the high value of each tokenized asset, the tokenization fee charged by the RWA project might inherently include the gas fee, thereby freeing users from additional complications.

RWAs represent a cutting-edge application of blockchain technology and have proven to be a lucrative sector for investors.

Closing Thoughts

Gasless transactions have the potential to revolutionize user acquisition for various crypto projects. By shouldering the gas fees on behalf of their users, projects implementing gasless transactions aim to enhance the overall user experience. This feature is particularly prevalent in projects where the benefits of participation significantly outweigh the associated costs.