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What is Biconomy and how does it work?

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Occasioned by the persistent rise in the level of crypto adoption, more platforms are now emerging in the sphere. Today, there are over thousands of cryptocurrency platforms running to provide global trading services to users, allowing them to explore the potentials enveloped in digital assets. Beyond this, these platforms, in most cases, usually help in handling transaction management, gas payments and bridges for Web 3.0 applications. This thus paves the way for users to easily access and harness the evolving web 3.0 applications. Some of these platforms include Steller, Ethereum, Biconomy and a host of others.

Generally, many of these projects, have so far, advanced the ways of doing things, thereby bridging the gap between the real-world and virtual environment. Meanwhile, these projects, have over time, enjoyed increasing adoption, serving as a medium through which users engage in virtual interaction, trading, gaming, payment and many more. A good example of this is Biconomy, which empowers users to transact and trade seamlessly on the blockchain.

Undoubtedly, this project, just like some of its contemporaries aims to provide an enablement for developers to build and execute their innovative ideas without restraints. Through this, the platform believes everyone can access and benefit from the decentralized future. Without further ado, this article intends to do a background check on Biconomy, with notable emphasis on its functionalities.

General Overview of Biconomy

Worthy of noting, Biconomy runs as a blockchain platform, offering easier user interface for developers to develop simplified Dapp solutions for end users. Also, it functions as a relayer infrastructure network and transaction highway. With this, it helps to reduce the friction between applications built on the blockchain and the end-users. According to its whitepaper, the protocol emanated to provide a seamless crypto infrastructure platform for users with little knowledge about the trends. Notably, its relayer network entails an SDK and dashboard. These techniques enable the protocol to help users escape the complications enveloped in opening a wallet, storing private keys, paying gas, and buying cryptocurrency.

Further, Biconomy, according to its website, leverages on smart accounts to onboard anyone to dApps within seconds. Also, it offers easy-to-use social logins & fiat on-ramps. Similarly, the blockchain-oriented protocol enables simplified transactions. It leverages on paymasters to offer gasless transactions. Remarkably, Biconomy accepts gas in any ERC20 tokens, and eliminate failed transactions.

Meanwhile, the platform enables meta-transaction on a multi-chain network. This thus paves the way for movement of funds across different blockchains. As of today, Biconomy houses more than eight blockchain networks. These networks include xDAI, Binance Smart Chain, and a host of others.

Products on Biconomy

Remarkably, Biconomy offers three products. These products, include Mexa, Forward and Hyphen. Mexa allows gasless transactions to the dApps in the protocol. Forward, on the other hand, enables users to pay transaction fees through their respective tokens. As for Hyphen, it allows for fast transfer of tokens within multiple blockchains. All these products work hand-in-hand to provide users with great experience.

Notable Features of the Platform

Biconomy offers a league of dApp solution that manages Web 3.0-related transactions. The project aids an innovation that gives a 3rd party the to carry out transactions on behalf of the user. Through Biconomy, the intermediary signs’ messages that contain information about a transaction. In a simplified interpretation, Biconomy prevents dApps from excessive charging for transactions or gas fees. Therefore, encouraging the mass onboarding of users into the Web 3.0 sphere.

It’s imperative to note that the mainstream adoption of Web 3.0 innovation is encountering a huge setback. These setbacks are due to the distinguishing features of the blockchain and how users of Web 2.0 are not familiar with it. Users of Web 2.0 are not familiar with paying gas fees, usage of cryptocurrency wallets and comprehending the dimension of gas fees. All these issues that are affecting the onboarding of users into the future of a decentralized internet are what Biconomy intends to address.

More so, Biconomy hosts ten blockchain networks which include Ethereum, BNB, xDAI and other prominent ones. The project’s compatibility with numerous blockchains give it the strength to allow users to move funds between numerous blockchains. Also, it contains inherently multi-chain attributes that provide users with a stress-free, decentralized exchange of value and messages. Above all, the platform works to simplify transactions for developers and final users of dApps.

Adoption of Biconomy by numerous projects

Due to its innovative posture for Web 3.0 initiative, Biconomy has attracted numerous users in person and project in the industry. Notable platforms have incoporated the solution into their platfom to make available its services for their users. However, these projects adopted Biconomy into their platform for numerous reasons and different use cases.

Among the notable projects to have incorporated Biconomy is Curve Finance, Sapien Network, Perpetual Protocol, Decentral Games and Matic. For Curve Finance, the project addopted Biconomy for meta transactions. The platform employs Biconomy for gasless BTC deposits. It aids users to deploy the BTC they keep in their portfolio for the provision of liquidity without gas fee payment as users swap them for RENBTC.

For Sapien Network, the project adopted Biconomy to allow new bloggers on its ecosystem to receive and send SPN its native token for free. Likewise, Perpetual protocol provides free transactions for traders on the xDAI chain through Biconomy. While Decentral Games currently attracts a new influx of game enthusiasts by providing a good gaming experience. Now, the platform doesn’t charge gamers for gas fees through the aid of Biconomy.

From a logical aspect, most of the projects leverage Biconomy’s attribute of providing almost free transactions. This attribute has strongly contributed to the growth and advancement of the project because it keeps attracting developers and projects on a daily basis.

Native token of Biconomy

Worth noting that Biconomy possesses a native token. Its native token, identified as BICO runs as an Ethereum-based token. It helps to power, secure and safeguard the network. Also, it serves as a governance token, allowing its holders to participate in proposals geared towards improving the platform. Further, this native token of Biconomy served as a medium through which node operators pay network fees. With this, it helps to efficiently decentralize the network. More so, the token serves as a means through which the network rewards its executors and validators. It also helps to reward all stakeholders who work to provide quality transaction management services, and share incentives and fee income with delegators.

Occasioned by the token, Biconomy pays incentives to liquidity providers. Notably, liquidity providers are usually those who facilitate cross-chain asset transfers. Also, the BICO token functions as a work token for the decentralized relayer network. Additionally, BICO, just like other cryptocurrencies, can be staked. It has a total supply of 1,000,000,000 BICO tokens. Interestingly, users can purchase the token on numerous exchanges, including Coinbase.

Staking on the platform

Worth noting, Biconomy paves way for BICO holders to stake their assets and earn rewards. The platform employs a proof-of-stake (PoS) consensus mechanism. Holders of the token, identified as delegators secure the network by staking their BICO assets. These delegators are rewarded in line with the amount of tokens staked on the platform. On the platform, node operators are also able to contribute to the network after staking their token. This thus allows them to earn more BICO tokens as rewards for their various contributions.

Future of Biconomy and its native coin

To some extent, Biconomy has proven that it has every capacity to gain the spotlight in the mass onboarding of users into Web 3.0. In that regard, the project has a prosperous future that awaits it. However, the native token of the protocol BICO hasn’t enjoyed much attention lately. The usage of the token has been limited to the ecosystem of Biconomy, which has affected its growth.

Currently, the usage of BICO is limited for voting on the DAO of Biconomy. Also, node operators of the network use the token to pay for transaction fees. The usage of BICO as well extends to a staking system that rewards investors to earn passively. Despite this vast utility case of BICO on the Biconomy platform, the token hasn’t enjoyed much attention outside its ecosystem. However, with sustainable efforts and strategies by its team, investors are optimistic it will go beyond shores in the future.

Final Thoughts

On a fair note, both BICO and Biconomy are bound to enjoy a prosperous future. As the relevance of Biconomy as a project continues to grow as a gas-charge-free solution for Web 3.0, BICO will likely gain more attention from investors. This attention alongside a positive market atmosphere will help the token grow in value rewarding investors. At the moment, BICO is an ideal investment option for investors who seek to acquire growing tokens and keep them hoping they yield a good return in the long run.

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