What is Biconomy? Is It Worth Your Time?

Cryptocurrencies have been popping left and right which makes it harder for an investor to decide whether or not they’re worth their time. In this article, we’ll be covering everything you need to know about Biconomy including the team behind it, its features, and many more.

What is Biconomy?

Biconomy is a multichain relay technology that promises to make the onboarding and trading experience for users of decentralized applications more convenient and straightforward. Its primary goal is to simplify transactions for users by guaranteeing that decentralization is available to everyone.

What Problems Biconomy Solves

Web3 applications are now affected by several issues that make it difficult for consumers to use them, such as poor user onboarding and transaction experiences. When your customers interact with dApps, it is usually a time-consuming process for them. 

In short, compared to web2-based applications using dApps are much harder and usually takes a lot of the user’s time. It could be because the majority of people are used to web2-applications but Web3 applications are known to have several problems that they need to work on like:

Long onboarding process 

New users who are unfamiliar with cryptocurrency will be required to complete a lot of steps. This will include verifications, purchasing ETH from an exchange, downloading a wallet, connecting their wallet, and many more things they have to do before they can proceed. 

This could take several days! People don’t hang around to try out a new app for days on end. A lot of web2-applications on the other simply require you to push a few buttons and you can start using the app right away.

Limited Payment Options

Paying with ETH is the only option for customers in a lot of dApps. And not everyone may have Ether stored on their digital wallets at the time of purchase. This severely limits their choices considering that there are a lot of other coins that should be usable out there. 

Paying Gas Fees

Every time a user interacts with your app, you are required to pay a gas fee. This is necessary but it’s very inconvenient. A lot of web2-applications don’t give you these kinds of problems.

A good example of a web2-application that is very convenient is YouTube, the platform does not charge you every time you watch a video, and transactions on the platform are usually for subscriptions and buying movies.

So why should dApps charge you for every engagement you have with their platform? Understandably, they need these gas fees to keep going but it’s very inconvenient and unappealing to a lot of users.

A lot of people are asking if there are better ways to handle gas fees? And this is precisely a problem that Biconomy wants to solve. 

The Complexity of dApps

One of the biggest issues new users face when using dApps is that sometimes it can get very technical and complex to use. 

Complex blockchain knowledge is usually required when handling dApps. Things such as how to utilize MetaMask, sign transactions, comprehend gas fees, backup wallets, and other technical aspects of the technology can be hard for a lot of people. 

For users of dApps to be successful in the blockchain, they must understand what layer 2 is and how to alter RPC on their own which is something that not everyone can do. In short, it can get too technical sometimes and it drives away potential customers. 

Biconomy plans to make things easier for a lot of users so that they don’t have to read a couple of whitepapers and online documents just for them to properly understand how a dApp works. 

Of course, we still recommend that you read these things at your leisure but you’ll be doing it voluntarily instead since it won’t be a requirement anymore when Biconomy solves this problem.

Resource Intensive Solutions

To be entirely honest, most of the problems mentioned above can be solved easily by blockchains but the reason why they don’t is that it’s too costly. Developers who want to solve the above would have to build their internal relayer infrastructure from scratch. This would take a lot of effort and a lot of time to do.

Even if they were successful the platform would be bombarded with so many tasks that it would have a hard time functioning. We’re talking about tasks like checking and monitoring gas prices 24/7, optimizing gas fees, tracking nonces, and many more!

Biconomy Features

Biconomy has different methods and approaches when it comes to solving the problems mentioned above. And we’ll be going through them one by one:

Meta Transactions

To aid users in accomplishing tasks on the blockchain, Biconomy makes use of meta transactions. Meta Transactions are transactions in which the data is prepared and signed off-chain by one party and then performed by another party who pays the gas fees.

Customers can perform transactions without the need for a single token in their account as a result of this feature. Furthermore, the transaction fees can be temporarily covered by third parties on behalf of the users in some circumstances.

Meta transactions are not supported by the vast majority of blockchain apps. But those who incorporate it into their infrastructure will be able to conduct transactions without the requirement to open contract accounts. Through the use of Biconomy Relayers, users’ transactions are instantly transmitted onto dApps contracts for finalization.

Mexa

Mexa’s primary focus is establishing smart contracts that do not require the consumption of gas. Smart contracts can be executed utilizing the secure EIP 2771 protocol, which is completely free and does not need the payments of gas fees. In short, Mexa enables gasless transactions between users.

To accomplish this, applications do not request payment for gas fees. Instead, they contribute to the costs of infrastructure. DApp developers must place chain native tokens in the dApp Gas Tank for transactions to be gasless when using their applications. 

Each dApp on each network has its gas tank, which can be replenished. This ensures that Biconomy relayers have enough gas to cover transaction charges and that transactions are transferred seamlessly from one relayer to the next.

Hyphen

Hyphen allows for instantaneous cross-chain transfers. Users that conduct high-volume transactions will find Hyphen to be their savior.  

The use of Hyphens speeds up and lowers the cost of network transactions, which is particularly useful for transferring ERC20 tokens from layer 2 to layer 1 blockchain.

Users can currently bridge their assets across the Avalanche and Ethereum blockchains, as well as between Avalanche and Polygon, in less than a minute by utilizing the Hyphen protocol.

Forward

Forward makes things “pretty straightforward” when it comes to transactions. This approach allows users to have more choices on their transactions. Forward aims to alleviate the absurdly high gas fees that occur during peak hours by allowing users to pay in native ERC-20 tokens.

Forward support payments are currently made in USDT, Dai, and USDC. It intends to integrate more ERC-20 tokens soon.

A Potential Superhighway Network

By developing a transactional infrastructure that is both flexible and adaptable. Biconomy will act as a superhighway, linking all scaling solutions on the Ethereum blockchain in one convenient location. As a result, offering an end-user with a straightforward and user-friendly interface; Biconomy can lower drop-off rates while simultaneously increasing user retention.

Is it Worth Investing In?

Biconomy Team

In March of 2019, Biconomy was founded by Aniket Jindal, Ahmed Al-Balaghi, and Sachin Tomar. They are aware of the difficulties consumers face when attempting to move funds across other wallets, and they have taken steps to address this issue when creating Biconomy.

Ahmed Al-Balaghi – CEO

Ahmed Al-Balaghi is the co-founder and chief executive officer of Biconomy. In his more than three years in the blockchain business, he has worked in China, the United Kingdom, and the United Arab Emirates, where he has amassed a wealth of expertise and often offers speeches and workshops to the public. 

In addition to blockchain infrastructure and protocol layers, security tokens, digital identification, cryptoeconomics, and exchanges, his research and investments encompass a wide range of other areas.

Sachin Tomar – CTO

Sachin is a co-founder and chief technology officer at Biconomy Inc. In his previous work for firms such as Samsung and Makemytrip, he gained eight years of IT experience as a Blockchain developer. With a proven track record in product development, Sachin is in charge of the technical architecture of Biconomy.

Aniket Jindal – COO

Aniket is a co-founder and chief operating officer of Biconomy. In addition to his extensive marketing, investing, and operations experience, he also has a strong background in finance and accounting. Aniket is currently in charge of operations at Biconomy, and he is well-known for his adaptability and versatility in the workplace.

Biconomy Investors

One good reason to invest in Biconomy is the number and quality of investors it has. Biconomy has received $22 million in funding from its investors giving it the resources it needs to continue improving its infrastructure and features. 

Biconomy Tocenomics

$BICO is the coin that is utilized by the Biconomy multi-chain relayer infrastructure for work and governance purposes. It plays an important role in decentralizing the network because it serves as the network cost, encourages everyone to keep the network safe and secure, and serves as a component of the network’s governance structure.

BICO holders can propose and vote on improvements to the Biconomy protocol as well as the entire network. Changes to the Network’s code, the addition of new services, and the allocation of funds are all examples of decisions that must be made by the Network.

Anyone who possesses BICO can submit a suggestion for consideration by the whole Biconomy community. As Biconomy moves toward community-led growth and self-sustainability, this is a key component of the company’s strategy to decentralize more and more over time.

Release Schedule

Conclusion

Hopefully, you’ve seen what Biconomy can do with the solutions it has created for big problems. The team behind it is pretty solid as well and the project holds a lot of potentials. In our eyes, it’s worth giving a shot especially because it has the potential to become a superhighway network if it plays its cards right.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.