The gas token is a new, revolutionary smart contract based on the Ethereum blockchain. This contract will allow users on Ethereum to tokenize gas. It will also allow users of the network to store gas when it is cheap and to use it when it is expensive. By using the GasToken, it can help to subsidize the high gas prices on transactions using the ethereum network. The GasToken also happens to be the first contract on ethereum that lets user purchase and sell their gas directly. This will ensure long-term banking, which will shield users from the sudden spikes of gas price.
What Is GasToken?
Gas is an essential part of the Ethereum blockchain. Every transaction that takes place on this blockchain includes gas. The fee paid to miners per transaction is usually proportional to the gas consumed by the transaction. The GasToken lets a transaction conduct the same amount of work and pay less gas. This will ensure that users save on the miner fees and costs. Additionally, it will allow users bid higher gas prices without paying higher fees. By using the GasToken on a transaction, you can save money on the Ethereum network.
What Problem Will GasToken Solve?
It is almost impossible to predict Gas prices on Ethereum. They can be as low as 1 gwei during off-peak hours. However, some cost hundreds of gwei just to gain access to a lucrative ICO. Users that want to be mined fast or first usually engage in a vicious bidding war. With the help of the GAsToken, it could give users a major advantage in bidding wars. They will be able to perform the same transactions while they spend less gas. The current issues are made worse by the fact that ethereum blocks are filling up, which makes block space even more valuable.
How GasToken Will Work
The GasToken takes advantage of the storage refund in the Ethereum blockchain. To encourage the contracts to delete their storage variables, Ethereum offers a refund if a storage element is deleted. This refund can be used to pay for almost half of the gas utilized by the contract transaction.
To use GasToken, you will simply need to mint or create GasToken by saving data in the token’s contract storage when prices of gas are low. When the gas prices rise during peak hours, you will spend the GasToken by sending them to the contract to be destroyed. This will free up the data that was previously saved. When it happens, the transaction is eligible for a refund. This will make it cheaper to conduct a transaction, which does not use GasToken.
This mechanism of banking storage and releasing at high prices had been suggested previously for miners. The GasToken simply extends these ideas to the general users of the Ethereum. This has been achieved via simple mechanism of tokenizing stored gas. The GasToken is compliant with the ERC20 standard, which will make it possible to exchange gas tokens among users. This simple but powerful idea will ensure that users pay less for the same contract transactions.