LockTrip Blockchain | 3. Gas Requirement
This is part 3 of the LockTrip Blockchain series. Read the second part here.
In this post, we will discuss the advantages of the LockTrip Blockchain in terms of Gas requirement.
But first of all, what is Gas?
Gas is used as a currency to incentivize miners to mine your transaction. As a result, every transaction on the Ethereum network automatically includes a Gas component.
The Problem:
Currently, you need to hold two types of cryptocurrencies in your wallet in order to transfer tokens. The first one is the token itself, and the second one is Ethereum, which is used to pay for the Gas. This complicates everything, as people need to undertake multiple steps just to buy and transfer Ethereum to their wallet.
How will the LockTrip Blockchain solve this issue?
Benefits for the LOC Coin
As LOC will become the native coin of the blockchain, you will no longer need any other currency to transfer it. Just like you can transfer Ethereum without using other currencies.
For customers of our marketplace, this will be simplifying the booking process significantly. It will thus become much easier to educate people about how to book with LOC.
In addition, coin transactions require much less gas than token transactions.
Benefits for LRC20 Tokens
While the above is very useful for LockTrip and our marketplace, this does not help much when it comes to other projects building their token economies on our blockchain.
You will still need two currencies to execute a token transaction, namely the token itself and a bit of LOC to pay for the Gas. But here comes the difference:
We plan to offer a range of smart contracts and turnkey technologies to compensate for this requirement. Those will be usable by any LRC20 token and add value to the businesses built around them.
Here is how it works:
- The application deposits a small amount of LOC to the customers wallet (in advance of the token payment)
- When the token transaction occurs, it will contain an extra amount of the transferred token (equivalent to 2x the gas cost), so that it covers the cost of the LOC that was sent in advance, plus the transaction cost of the payment in advance
→ This results in two transactions instead of one, but provides a much better user experience. It effectively makes the payment process for tokens much more coin-like for the end user.
We wanted to implement this feature for our own marketplace on the Ethereum Network. But the unpredictability of the network fees and high gas prices made it impossible to operate the system safely (considering it doubles the transaction fee).
This is why our own Blockchain is urgently needed in order for this feature to become sustainable and economically viable.
In addition to the smart contracts, we will also be offering turnkey technology for API connectivity with exchanges, so that DAPPs can initiate business operations that involve automatic conversions ad-hoc through their website and mobile applications.
A Win-Win-Win Strategy
DAPPs win: They can now provide their customers a much better and smoother experience without forcing them to buy two different currencies.
Stakers win: As the smart contract technology described above uses two transactions instead of one, this will result in higher mining rewards.
LockTrip wins: This service will be another incentive to attract projects to our blockchain.
In summary, the LockTrip Blockchain will enable us to introduce features that would be impossible to operate on the Ethereum Network, while providing the LOC coin with the exclusive advantages of being a coin.
New to this series? Read part 1 and 2:
Part 1 — Marketplace Marketing | Part 2 — LOC Liquidity
LockTrip is the first marketplace with 0% commission where you can save on average 20% on your hotel and rental bookings compared to anywhere else. Learn how to buy LOC tokens to enable access to our marketplace and its lower prices here!
