Crypto Wallet Zerion to Launch ZERO Network with Free Transactions
Zerion, a crypto wallet, is developing its own Layer 2 network called the ZERO Network, which is set to be launched in late Q2 or early Q3 of this year. This network will be based on Ethereum and will operate as a rollup. The key feature of the ZERO Network is that it will offer free transactions, aiming to enhance user experience by eliminating fees.
According to Zerion co-founder Evgeny Yurtaev, the concept of paying fees is unfamiliar to newcomers in the blockchain space. Therefore, the project believes that removing fees for end-users will be an appealing and significant advantage.
The Economics of Free Transactions
One major question surrounding this initiative is how Zerion plans to sustainably offer free transactions without compromising its business model. The company claims that subsidizing fees will initially involve costs but expects these costs to decrease over time as transaction fee improvements are implemented.
Yurtaev cited the recent introduction of blobs, which have significantly reduced fees on Layer 2 networks, as an example. He stated that with tens of thousands of dollars, Zerion could sponsor millions of transactions and predicts that costs will continue to decrease throughout the year.
A Literal Network Effect
In addition to providing free transactions, Zerion believes that launching its own network will generate more awareness for its wallet and lead to increased revenue. By attracting new wallet users who may later pay fees for swapping through the app or subscribing to premium services, Zerion expects these sources of income to offset the cost of subsidizing the rollup.
The vision is that users can send USDC to friends for free, allowing them to immediately transact on various dapps available on the Zero Network. This network effect is anticipated to drive adoption and usage of the Zerion wallet.
Addressing Spam and Sharing Costs
While offering free transactions may attract spam, Zerion plans to implement measures to combat this issue. The company will analyze factors related to both the wallet and the transaction to identify and prevent spam. If a transaction is deemed spam, Zerion will not subsidize the fee but will still allow the user to pay for it themselves.
Zerion also intends to collaborate with dapp developers to share the cost of subsidizing transactions. Dapps will have the option to cover their users’ fees on the network.
Technical Specifications and Partnerships
Zerion has chosen not to disclose the technical specifications of its Layer 2 network or which stack it will be built on. However, Yurtaev mentioned that Zerion is working with undisclosed partners for the launch and is currently in discussions regarding the data availability layer that will be utilized.
Hot Take: Free Transactions Could Revolutionize Crypto Wallets
The introduction of Zerion’s ZERO Network with free transactions has the potential to revolutionize the crypto wallet industry. By removing fees for end-users, Zerion aims to make blockchain technology more accessible and appealing, particularly for newcomers who may find fee structures confusing or off-putting.
This innovative approach also presents opportunities for Zerion itself. By attracting more users through its free transaction offering, Zerion can generate additional revenue from fees incurred during swaps or premium services. This revenue stream could offset the costs associated with subsidizing transactions on its network.
However, challenges such as spam prevention and cost sharing with dapp developers must be addressed to ensure the sustainability of this model. Zerion’s proactive measures to combat spam and collaborate with partners demonstrate a commitment to overcoming these challenges.
Overall, the launch of Zerion’s ZERO Network marks an exciting development in the crypto wallet space. If successful, this initiative could pave the way for more user-friendly and economically viable solutions in the blockchain industry.
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