Biconomy integrates Chainlink to enable gas payment with different ERC-20 tokens »CryptoNinjas
Biconomy, a cross-chain transaction infrastructure For decentralized applications, it was announced today that Chainlink has been integrated to calculate execution costs and rebalance the repeater infrastructure on Polygon and Ethereum mainnet.
It will use Chainlink Price Feeds to ensure that users receive a fair market price when paying for transactions in a cryptocurrency that is different from the local assets of the blockchain on which they are running.
Biconomy enables blockchain developers to provide a simplified onboarding and trading experience for users of Web 3.0 and blockchain projects. It does this through powerful APIs that eliminate many of the complexities inherent in Web 3.0 applications.
Recently, Biconomy launched a module called Forward, which allows end users to support ERC-20 tokens and stablecoins instead of the underlying blockchain cryptocurrency of the blockchain they are developing (ie ETH or MATIC) Pay DApp gas fees. On the backend, this requires the user’s tokens to be converted into the local currency of the blockchain/DApp to complete the transaction.
The on-chain process of completing a transaction driven by Chainlink begins with the client retrieving the current gas price from the server. Then, the ERC20 transponder receives the token that the user wants to pay for gas, and requests the price of the token from the oracle aggregator that references Chainlink. Subsequently, the ERC20 Forwarder calculates accordingly how many tokens the user should pay to pay for their gas, and then charges the user. Then calculate the fee and pay with the converted ETH.
Dual economy + Chainlink
The integration with Chainlink ensures that Biconomy can use accurate exchange rates to calculate the gas cost of each transaction and maintain a fair and reliable payment infrastructure. This is extremely important when transactions are completed in various currencies. Therefore, users can pay for gas with tokens of their choice, while ensuring that they pay the correct fees. DApps can enable this new feature to improve user experience and provide flexible gas payment options.
“As we continue to work on simplifying Web 3.0, Chainlink will become a key component in the architecture we need to simplify the payment process. With Forward, users can now save the ETH they hold instead of wasting it on gas.”
– Aniket Jindal, co-founder of Biconomy
This Chainlink Price Feed integration marks Biconomy’s first foray into oracle technology that has nothing to do with blockchain. In the future, Biconomy plans to integrate many other ERC-20 token price information on different blockchain networks, which will better meet the needs of developers.