What are gasless transactions?

Understanding the Concept of Gasless Transactions

In the world of blockchain and cryptocurrencies, gas fees are a critical component that users must pay to execute transactions or smart contract interactions on networks like Ethereum. However, gasless transactions refer to operations where users do not bear the cost of gas fees directly. Instead, these fees are covered by third parties or alternative mechanisms embedded within decentralized applications (dApps) or protocols.

This model is particularly appealing for improving user experience, especially for newcomers who may find paying gas in native tokens cumbersome. It enables seamless interaction with blockchain platforms without requiring prior token balances for transaction fees.

How Gasless Transactions Work

Gasless transactions typically operate using meta-transactions, which act as intermediaries between the user and the blockchain network. In this setup:

• The user signs a transaction without sending it directly to the blockchain.
• A relayer or service provider takes the signed transaction and submits it to the network.
• The relayer pays the gas fee on behalf of the user.
• Smart contracts verify the authenticity of the transaction before execution.

This mechanism ensures that the end-user doesn’t need to hold any native cryptocurrency, such as ETH, to interact with dApps or perform token transfers.

Implementation via Biconomy and Other Middleware Services

One of the most prominent enablers of gasless transactions is Biconomy, a middleware infrastructure provider that simplifies blockchain interactions. Biconomy facilitates meta-transactions by:

• Offering gas abstraction layers that decouple gas payment from the user.
• Providing transaction relayers that submit transactions on behalf of users.
• Supporting customizable gas models, allowing developers to sponsor gas fees for their users.

Developers integrate Biconomy’s SDK into their dApp, enabling features like:

• User-friendly onboarding without requiring wallet top-ups.
• Batched transactions to reduce overall gas costs.
• Gas sponsorship programs where project teams cover transaction fees to enhance adoption.

This integration allows users to transact using stablecoins or other ERC-20 tokens while the backend handles gas payments in ETH automatically.

Role of Smart Contracts in Gasless Transactions

At the heart of gasless transactions lies the smart contract architecture designed to accept and validate meta-transactions. These contracts implement specific functions to:

• Verify the signature of the original transaction.
• Execute the intended action once validated.
• Reimburse the relayer or sponsor for covering the gas cost.

To achieve this, developers often use standards like EIP-2771, which provides guidelines for receiving and processing forwarded calls. This standard helps distinguish between the actual sender and the entity submitting the transaction.

Key components in this process include:

• Forwarder contracts that handle meta-transactions.
• Trusted relayers that forward signed data to the blockchain.
• Signature verification logic to prevent unauthorized execution.

These smart contract capabilities make it possible to build decentralized systems where users can engage without upfront crypto holdings.

Use Cases and Applications of Gasless Transactions

Gasless transactions have found practical applications across various domains within the blockchain ecosystem:

• Gaming platforms: Players can interact with games without worrying about gas fees, enhancing immersion and engagement.
• Decentralized finance (DeFi): Users can swap tokens or provide liquidity without needing to hold native chain assets.
• Non-fungible token (NFT) marketplaces: Buyers and sellers can trade NFTs seamlessly, increasing accessibility.
• Web3 identity solutions: Simplified sign-in and credential management without requiring gas for every action.

Projects like Gitcoin Passport, Polygon ID, and ZKSync Era have adopted or explored gasless models to improve usability and inclusivity.

Frequently Asked Questions (FAQ)

Q1: Can gasless transactions be used on any blockchain?While initially popularized on Ethereum, gasless transactions can be implemented on any EVM-compatible blockchain that supports custom smart contract logic and relayer services.

Q2: Who covers the cost of gas in a gasless transaction?Typically, project developers, dApp operators, or sponsors pay the gas fees. Some platforms also use revenue-sharing models or protocol fees to sustain gas coverage.

Q3: Are gasless transactions secure?Yes, they maintain the same level of security as traditional blockchain transactions. The use of digital signatures and trusted relayers ensures that only authorized actions are executed.

Q4: Is there a limit to how many gasless transactions a user can perform?Limits depend on the platform's implementation. Some applications impose rate limits or usage caps, while others allow unlimited usage under sponsored programs.