Biconomy (BICO): The Network Protocol Solving Ethereum’s Issues
The Ethereum blockchain is facing the problem of mass user adoption and scalability due to its incredibly high gas fees and slow speeds during transactions — but Biconomy’s network protocol is changing the game when it comes to these issues. Let’s find out how the network’s decentralized token makes gas fees cheaper and invites new users to participate in the community in exchange for crypto rewards.
Creators have been developing a variety of functions on Web 3.0, such as DeFi protocols, which are real-life use cases that facilitate financial services between peer-to-peer.
What Is Biconomy?
The digital space has faced a paradigm shift in using technology in the last few years. From internet-based centralized applications that existed on Web 2.0, we are moving towards a decentralized form of accessing information via blockchain technology and the rise of Web 3.0.
One of the most popular platforms for creators and developers to use is the Ethereum blockchain due to their deployment of smart contracts that make creating NFTs, DApps, and other DeFi use cases very possible. But the main challenge for the blockchain remains to be adoption and scalability — due to a combination of complex transaction processes and high fees often alienate up and coming investors from entering the Web 3.0 space.
The solution to this problem is Biconomy — a decentralized network attempting to create a frictionless transaction process between blockchain applications and end-users. Biconomy is a next-gen multichain relay network and transaction platform that makes accessing decentralized applications (DeFi) and other Web 3.0 intermediaries much simpler and cheaper on the Ethereum blockchain.
Why Is There A Need For Biconomy?
Biconomy has the potential to become a revolutionary product on the Ethereum blockchain since it reduces network gas fees and simplifies the transaction process across cross-chain networks.
Its gas-efficient infrastructure makes transactions of Web3 applications a simplified process for users. Since the network is non-custodial, it does not allow third-parties to have any control over the transfer of funds and assets. To make transactions easier, Biconomy generated Mexa, a safety development tool created on the network. Mexa, in turn, has been deployed on the smart contracts itself, which enables a concept known as Meta transactions.
Meta transactions allow users to make a blockchain transaction using a zero balance account, authorizing any third party to make the payment for transaction fees on behalf of the user.
The extremely high gas fees per transaction are a significant roadblock for successful user adoption. Anytime a potential user may want to interact with a DApp or exchange currency on the blockchain, there is a compulsory gas fee to pay. While simple Web2 applications like Netflix don’t require customers to pay a fee per interaction, it becomes very challenging for Web3 applications to become more intuitive.
Biconomy has solved this major hindrance by allowing users to onboard without paying gas through gasless transactions. Forward, the protocol deployed on the network focuses on gas optimization and transaction management, reducing gas costs by as much as 40%.
Forward is a local tool that reduces high fees costs for end-users. It allows users to pay off gas fees using ERC 20 tokens, used for all smart contracts on the Ethereum blockchain. One such ERC 20 token is Biconomy’s native token, BICO, but more on that later.
Like the Mexa system, Forward safely and securely sends meta transactions across users. They do this by deploying EIP 2771, a secure protocol that processes gas fee payments in a way that prevents the end-user from being overcharged. The protocol sources token price data and only charges customers based on the amount of gas used per transaction.
The EIP 2771 protocol is also used by Mexa, which allows gasless transactions to be performed on various decentralized applications (DApps). This enables users to purchase gas using ERC 20 tokens and prevents unnecessary blockchain complexity, such as network switching and connecting to different wallets.
BICO Partners With Major Cryptocurrency Blockchains
The BICO network has managed to partner with other blockchains that also work to improve the Ethereum network. Its third important tool, Hyphen, is a cross-chain protocol, which enables faster token transfers between blockchains.
Due to this, the popular blockchain, Avalanche, and Polygon have partnered with Biconomy’s network. Hyphen bridges the gap between Avalanche and Ethereum blockchains, which allows users to access multi-currency payment options between both networks. Biconomy’s infrastructure will also reward users with a two to three times faster and less expensive transaction process, making it far superior to the existing Ethereum network.
But Biconomy hasn’t finished there; they have released their crypto token, BICO, to help build their decentralized community.
How Does The BICO Token Benefit Its Holders?
$BICO is the native token of Biconomy’s multi-chain relayer infrastructure. For Biconomy to successfully integrate its decentralized network that incentivized potential users, the $BICO token was created on the Ethereum blockchain.
BICO incentivizes its token holders to stake the native token for rewards and more crypto.
Biconomy ensures network security by offering BICO token holders the opportunity to become delegators. This requires interested users to delegate their tokens to the node operators, who maintain network transactions. The delegators are rewarded with an additional $BICO in proportion to their delegated amount.
Finally, BICO is also used as a governance token to maintain network updates through decentralized participation. $BICO holders can stake their tokens in exchange for voting rights over decisions affecting the network. These can include decisions on the network code, adding additional services, etc. $BICO holders can also submit proposals to the broader community, ensuring that decisions are taken unanimously.
Through the simple concept of staking, you can make a lot of money by just participating to improve the network; this is why it may be a good investment opportunity for some.
On December 1, Biconomy officially released the $BICO token, with a total allocation of 1 billion tokens and a current supply of 66 million tokens. To maintain their promise of a decentralized network that functions through user participation and governance, 38.12% of the tokens were allocated to the BICO community. This will help Biconomy promote token adoption and network governance via user participation.
BICO token allocation, Source: Biconomy Litepaper
The BICO Token went live on December 1, 2021, at a base price of $5.5 with a market cap of just under $360 million. $BICO rallied to an all-time high of $21 within 48 hours of opening, which rewarded initial investors with a 4x return. However, the token has since fallen to a price of just $4.02 as of December 15, 2021.
BICO token chart, Source: Coinmarketcap
$BICO has corrected by 80% in just two weeks, but it still may be a lucrative opportunity for the long term, here’s why.
After seeing the current price of BICO, many may be hesitant to invest in the network. But BICO has been solving an issue hurting the Ethereum users for years now. The latest ETH 2.0 protocol, which promised to reduce gas fees and make transactions faster, has been pushed back to Mid-2022. Some are sceptical if it will make Ethereum better, but BICO has already demonstrated how its protocols allow Ethereum users to pay less and conduct transactions at a faster rate. If Biconomy (BICO) manages to gain users’ trust and early adopters successfully, a huge chunk of Ethereum’s investors could potentially use the platform and cause the token to skyrocket.