What are transactions?
Transactions in Relational
Databases With Postgres Examples
Introduction
Scalability, being one among
the main hindrances within the defi applications, has created huge barriers to
entry. Due to the lack of scalability and network congestion, the amount of fee
to be paid by the transaction holders has become huge. Alternatively, users now
search for the solution that improves the decentralized finance ecosystem and makes
it more usable and accessible.
What is the solution to
such a problem?
Meta transactions allow different users
to do transactions on the public blockchain with zero transaction fees. It
builds a more seamless UX since users dont need to understand the inner
workings of various blockchain platforms and gas fee dynamics.
Meta transactions are quite
almost like regular blockchain transactions but they have to possess proxy
contracts as an addition thats referred to as relayer. Meta transactions use
the cryptography where users got to sign the transaction and authenticate it. A
serious difference here is, the transaction is managed by the relayer, who pays
the gas and completes the transaction by sending it to a receiving address.
Several developers can
leverage the meta transactions that will significantly offer a far better user
experience to the users and different DeFi applications. Such a feature would
bring the crypto and decentralized finance ecosystem to the highest level which
will offer a seamless user experience while accessing the Defi Platforms and
web 3.0.
Meta transaction is the
gasless transaction that allows several users to interact with different
decentralized applications that have a public key and the private key.
How does it work?
To do a meta transaction, an
ethereum user must initiate the transaction just like the standard transaction
on the ethereum platform and sign it with its private key. But rather than
sending it to on-chain users, it should send it to a relayer who does the further
transactions.
Relayer is that tool or a
service thats willing to pay a gas fee. So, whenever the transaction is hit on
the on-chain, itll use a proxy smart contract which will validate the
signature and ensure that it works properly. The most important advantage of
this mechanism is that theres always a node or relayer thats interested in
covering all the gas costs with its funds.
Relayers do not run any
charity, what they are doing is that they charge in the contract who is the
recipient and obtain the fees back with some extra fees for the services
offered.
Gas Station Network
A decentralized network of
various relayers is understood as a gas station Network. Different users can
build decentralized applications but without any need to pay gas. Different
relayers work on the gas payment of the transaction that assists different
dApps to work without any hindrance.
What are the various sorts
of Meta transactions?
Relays are of two types: centralized Relays and
Decentralized Relays.
Centralized Relays are an
array of relays or one relayer who facilitates the meta transactions using the
proxy contracts. Being centralized, it causes the contradiction for
decentralization finance and it can cause one point of failure.
Decentralized Relays.
Decentralized relays are the
perfect solution that watches the transaction pools and works like secondary
miners. Relayers are capable of processing one transaction, hence the relayer
validates the foremost profitable transactions.
How does a gas station
Network work?
A Gas station takes the
gasless transactions from the users, and different relayers within the GSN sign
the transactions and return it to users. A sensible contract like Relayhub acts
because of the relays who facilitate the transactions between the smart
contracts and relays.
Conclusion
Meta transactions aim to
scale back the complexities of the transactions by making it a gasless
transaction. it offers a good range of advantages for the users while
onboarding on the online 3.0 applications.
Meta transactions have the
potential to become the common practice to create a decentralized application.
The most use case of meta transactions is for decentralized finance. Relayers
and meta transactions have mostly reduced the hindrances caused within the use
of decentralized finance.