What Is Happening
Ambire, an open-source, non-custodial smart wallet, introduced a Gas Tank feature that allows user’s save a significant amount of money on fees. Due to the Gas Tank functionality, users of the Ambire Wallet take advantage of discounts and rewards on transaction costs while using stablecoins or ERC-20 tokens.
The Gas Tank functions similarly to a prepay system where the customer pays credit in advance for network expenses with a single deposit.
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What Is Ambire Wallet
Ambire Multi-Currency Crypto Wallet is a fully-featured, cutting-edge cryptocurrency wallet designed for cryptocurrency novices to crypto and DeFi savvy users. It offers a number of innovative features, like transaction batching, automatic gas management, and support for hardware wallets for military-grade security.
Ambire is linked to Ethereum, Avalanche, Binance Smart Chain, and Polygon network.
Users have two options for funding their Ambire wallets: purchasing cryptocurrency with cash or sending money directly to their wallets.
A user may also do cross-chain transfers by using the built-in bridge integration, where users can move funds across many L2s with a button. Arbitrum, Polygon, Avalanche, Fantom, and BSC are some blockchains supported.
Ambire cross-chain bridging is powered by SOCKET, a bridge aggregator that utilizes popular bridges such as Hop, Multichain, Connext, and many more to provide users with the lowest routes and quickest transfers.
The Problem With Rising Ethereum Transactions Fees
With the rise of NFTs and the buying mania in the NFT industry, there has been an increasing number of transactions that jam the Ethereum blockchain. This has led to skyrocketing transaction costs and frustrating users who are abandoning Ethereum in favor of cheaper blockchains like Solana and Avalanche.
Ethereum promotes itself as the future of finance and has been called into question as a possible existential danger because many users of DeFi platforms are frustrated that they must spend more than $100 to deposit, say $50 worth of cryptocurrencies.
The silver lining is that developers are rushing to find other solutions, such as developing a second layer of Ethereum that would make it possible for a lot of stuff to happen outside the main network yet still be accessible.
For example, Meta Transactions are used in The Gas Tank, which lets one user sign a transaction but have it relayed and paid for by another. The relayer cannot alter the transaction itself. On several networks, The Gas Tank supports a wide range of various tokens.
The network costs that a user will ultimately earn are thus prepaid when they make a deposit, with the relayer supplying the real ETH or other gas tokens for the transactions. As a result, consumers will spend less money on unneeded gas for switching and get compensation from Ambire.
Will Ethereum Merge Lead to Reduction in Transaction Fees
Dune Analytics, a blockchain analytics platform, reports that Ethereum's seven-day average cost has fallen to its lowest level since 2022, roughly around 5 USD. Exorbitant fees, which peaked at over $40 during the bull market of 2021, have constantly plagued the Ethereum network.
Because of this, the blockchain became pricey for the common person, stimulating the growth of substitute platforms like Solana. Despite the fact that the price of the leading cryptocurrency has significantly increased over the last month, Ethereum fees are still rather modest.
On the eve of the much-awaited merge update, which will enable the network to switch to the proof-of-stake algorithm, the price of bitcoin recently spiked.
Although the energy use of Ethereum 2.0 will be far lower than that of the second-largest cryptocurrency's computation-intensive proof-of-work iteration, the merger won't immediately result in lower gas prices.
It's no longer true that the Ethereum 2.0 update would include "sharding," the technique that divides the main chain into several shards.
As a result, even though the merger would speed up transactions and lower costs, it won't truly help the network's scalability issues. Due to this, transaction scaling and gas fee reduction protocols are developing solutions that solve this pinching problem in the web3 ecosystem.
Final Thoughts On Crypto Gas Fee and Scaling Layer 1 Blockchain Solutions
With the emergence of Web3 and NFTs, the price of blockchain transaction fees, also known as gas fees, is one of the greatest entry hurdles for mass adoption. Web3’s guiding principles are oriented on accessibility and inclusion, so this basic scalability challenge calls those tenets into doubt.
For the blockchain economy to spread its footprint, a reduction in gas fees is very important therefore, initiatives to develop methods and tools to reduce gas fees are a step forward in the direction of mass adoption of blockchain.
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Image credits: Shubham Dhage.