Free recommendations represent the next revolution in Web3 delivery. In the next wave of DeFi, users will be able to communicate with the latest DeFi applications for free or almost zero cost, which will help the technology spread widely.

Scalability is one of the main obstacles to decentralized financial (DeFi) applications, creating a huge barrier to true market penetration. Closely related to this is the issue of high transaction fees, which has been a huge headache for Web3 newcomers. The lack of scalability and network congestion has caused transaction fees to soar, further preventing users from executing various transactions in the blockchain.

Solving scalability problems

So the question is, what steps can we take to minimize transaction costs? While there are many strategies to reduce costs, most of them can be traced back to two solutions. Or we need to build a new blockchain to deal with the problem and build on existing technology, and then make the existing blockchain more efficient.

Blockchain-based Layer 2 (L2) is a network or technology that runs on top of the underlying blockchain protocol to improve its scalability and efficiency. It's like bundling a thousand transactions for the price of one without giving up (too much) security. There are several L2 protocols that allow ethereum users to keep their fees to a minimum. However, these involve different trade-offs. Some are faster, while others are more secure.

When the gas is no longer a gas

Once the scalability problem is solved, gas costs will become less negligible. The next question is, why should users pay for transactions every step of the way?

This is where the meta-trade without the trade comes into play.

Meta-transactions are a step forward in allowing different users to make referrals on the public blockchain with zero transaction fees. Developers of decentralized applications (DApps) pay a negligible amount of gas on behalf of users. This provides a smoother user experience as users do not have to understand the dynamics of the internal operations and gas fee calculations of different blockchain platforms.

Web3 Revolution in Space

In addition to the solutions mentioned above, there are many strategies that can be used to reduce transaction costs.

Scheduling trade dates: It is known that Ether gas prices fluctuate throughout the day as different events occur within the chain and as different parts of the world awaken. As a result, gas prices may be significantly lower during certain hours of the day. If we take these dates into account and target them in the trading process, then lowering transaction costs is already achievable. Paxful's study identified the busiest and most expensive times between 8 a.m. and 1 p.m. (U.S. Eastern Standard Time). Most of Europe and the U.S. would then be awake and working during this time. By contrast, midnight to 4 a.m. (U.S. Eastern Standard Time) is much less busy and ultimately cheaper.

Using a stable off-chain payment network: The Xpal off-chain payment channel is working to develop a payment solution that instantly approves transactions in seconds and at minimal cost. The system works by charging a nominal fee proportional to the amount deposited.

Repeater Infrastructure: The future of Web3 is multi-chain and gasless. Different chains, layers and scaling solutions can be seamlessly combined to ensure scalability and speed. In an ideal world, everyday users would be free from the hassle of overloading blockchains. You don't have to switch between chains and layers to use the DApp – it just happens automatically in the background.

The Future of Web3

Web3 will only succeed in completely replacing Web 2.0 if users can trade freely without paying high transaction fees.

So far, everything we've seen in DeFi has only scratched the surface. We've seen what's ahead of us. The user experience will play an important role in enabling us to enter the ecosystem and attract new people.

Source: Cointelegraph