Biconomy: How to Improve Web3 for the End User
Web3 is heralded as the new iteration of the internet that puts decentralization and transparency front and center. The basis for the majority of Web3 products and apps is blockchain technology.
But, for all its benefits, actually using blockchain tech can be an obstacle for many people, especially during the onboarding process. Users in Web3 have to contend with a rather raw and overly technical UX. Using even the most basic Web3 products usually comes with a steep learning curve.
So, what’s the solution? There’s no one-size-fits-all here: a lot of different improvements have to come together for Web3 to become genuinely user-friendly.
One of those solutions is Biconomy. Biconomy allows developers to create user-friendly dApps, by abstracting away front-end complexities which results in a frictionless user experience.
How does that work? Let’s find out!
What Is Biconomy?
Biconomy is an organization working to improve the UX in Web3 by providing developers with tools that make dApps simple to use.
Launched in 2019, Biconomy set out to onboard the next million to Web3 by providing a frictionless experience within dApps. The team recognized user onboarding and transaction experience as major roadblocks to mainstream adoption.
For example, most dApps require users to sign transactions, pay gas, or purchase ETH for gas fees. Using layer 2 solutions and switching between networks can also get complicated.
Biconomy wanted to simplify transactions and thus make the experience within dApps painless for the end user. In simple terms, Biconomy provides a scalable multi-chain relayer that handles technical complexities behind the scenes. That means that users can intuitively onboard and transact on different blockchains without multiple complicated steps.
Integrating the Biconomy protocol allows dApps to offer their users gasless transactions, the possibility to pay gas in various tokens, a seamless cross-chain experience, and fast confirmation times for transactions.
How Do Gasless Transactions Work?
We probably all dreamed about avoiding gas fees at one point or another. However, the Ethereum network requires gas fees to process transactions. And whether you’re buying an NFT or swapping ERC20 tokens, gas is always paid in ETH.
So, how does Biconomy remove the need to pay for gas?
Meta transactions
Biconomy makes use of EIP-2771, an Ethereum improvement proposal that allows for meta transactions.
Meta transactions are created and signed by one person and then sent to a third party (relayer). The relayer then sends the transactions to the network and pays for gas fees.
Using meta transactions allows users to interact with dApps without having any ETH in their wallets. Biconomy also takes care of gas optimization and generally manages to save approximately 20% in gas fees.
With meta transactions, Biconomy acts as a developer solution that makes transactions easier for less experienced users. Biconomy plans to open source their relayers and decentralize their process in the future, which would ensure that Web3 ethos is preserved even through the introduction of intermediaries.
What Else Is Possible? A Short Introduction to Biconomy SDK
Biconomy launched its brand new SDK (software development kit) in November 2022. The Biconomy SDK works by using smart contract wallets (SCW) in combination with Biconomy’s multi-chain relayer infrastructure.
The SDK helps developers onboard users and ensure a great experience inside a dApp in a non-custodial way. By integrating Biconomy’s infrastructure, developers can make their dApps much more intuitive and user-friendly. The technical complexities involving transactions, gas, and network switching are abstracted away and dealt with behind the scenes.
Here’s what you can build using Biconomy’s SDK:
Social login: Make account creation and recovery easier by allowing users to sign in to your dApp with their email or social media accounts.
On/off ramps within your dApp: You can integrate a tool that will let your users buy and sell crypto and fiat within the dApp itself.
Gasless transactions: Your dApp can sponsor gas fees so users don’t have to pay for gas. You can also make this option available for select users or let users pay gas in any ERC20 token.
Batch transactions: Biconomy SDK allows you to batch transactions so your users can bundle multiple actions in just one transaction. This option works across multiple chains.
Cross-chain contracts calls and asset transfer (coming soon): You can allow users to bridge assets and make contract calls across different chains.
Sounds interesting? Check out the Biconomy SDK documentation and keep an eye out for our deep dive into all possibilities provided by Biconomy. Jump into our Discord if you have any questions and we will try to cover them in the upcoming article!
Inside Biconomy: $BICO and the Biconomy DAO
Biconomy’s native token is an ERC20 token called BICO. It has several uses within the Biconomy network.
Since Biconomy functions as a settlement layer for meta transactions, it has executors and validators that run relayer nodes and verify transactions. BICO is used to pay and incentivize network participants, whether they’re executors, validators, liquidity providers, or contributors to the project. BICO is also used to pay for Biconomy network fees necessary to settle, verify, and send transactions. Additionally, network participants can stake BICO and earn rewards.
BICO holders also take part in governance. They can create proposals and vote on issues regarding the future development of the network.
If you want to dive deeper into the Biconomy governance process, it’s best to join the Biconomy DAO. The Biconomy DAO offers grants, bounties, and opportunities for talented people to contribute to the protocol. It also hosts governance discussions and proposals.
Conclusion
Biconomy is a platform that empowers Web3 developers to build intuitive and frictionless dApps that ensure wider adoption and a decentralized future. The Biconomy SDK can help bridge the gaps in Web3 and make blockchain software development easier and faster.
Want to learn more about Biconomy? Check out their docs, join the Biconomy DAO, or chat with the community in Discord or on Twitter.
