Ethereum is one of the most popular blockchains in the world. It is the second most popular after the BTC blockchain. However, there are genuine concerns about its capabilities in terms of scaling and transaction costs. It would appear the solution to make it more efficient is to let users tokenize Gas. However, it remains to be seen how it will be implemented. Here are four reasons why it makes sense to tokenize gas.
Teaching Users About Gas
Most people that use Ethereum or buy ETH do not understand what gas is. This is despite the fact that it is one of the most important aspects of the Ethereum blockchain. By allowing users to tokenize Gas, it could serve as an educational tool for newbies who want to join the crypto ecosystem.
By bringing more attention to it, the project will place a spotlight on the changing value of gas although it is used in each transaction. Most people in the world do not understand how tokens, assets, and crypto coins work. Thus, tokenizing gas would play a crucial role in educating the masses.
Saving Up for Hard Times
Most Ethereum users know that it is hard to calculate the exact prices of gas since it is always in flux. When gas is tokenized, users will be able to save up some gas when it is cheap and use it when the price of gas rises later. It is especially so during a major token sale when the price of gas can shoot up. At the end of the day, it comes down to helping users save costs, which is something everyone would appreciate.
How will it Work?
So, how does one even save gas? To explore how tokenizing gas will work, one needs to look at how Ethereum is designed. One feature of the network is called the Storage Refund. It lets smart contracts delete storage variables. The variables will be broadcasted to all network nodes, which lead to excess data to be passed around. As the variables are deleted, refunds are issued to contract owners.
While these refunds might seem small, it is not so. Some refunds can help one recoup a huge portion of the gas utilized in contract transactions except in single spends. It was only logical that someone would decide to leverage the technology in a manner that would benefit all Ethereum users and projects that wish to use the ecosystem.
Anyone Can Use it
Some users might wonder how they can benefit from the solution. A third party smart contract called GasToken was created a short while back. This is how gas is tokenized on Ethereum. The contract code can be found on GitHub, which means anyone can create a similar project or improve on it. The contract can be implemented on any contract interface including Solidity, Mist, and even MyEtherWallet. This solution can be used by anyone since you do not need to purchase GasTokens to get started.