Victor Ugochukwu · Dec 14, 2020 . 5min read
USDC stablecoin introduces “gasless sends” transactions
USDC 2.0 allows gasless sends option where wallet developers can either pay for the fees on behalf of customers or present/deduct these fees in USDC instead of ETH
By Victor Ugochukwu · Aug 28, 2020 . 6min read
Centre, the backer of USDC stablecoin, has made some significant changes in the latest update introducing “gasless sends” transactions to combat the spike in gas fees as seen in Ethereum today.
Dubbing the update USDC 2.0, Center removed the poor user experience in sending transactions where the network mandates users to pay for any transaction in ETH. It introduces “gasless sends,” which enables wallet developers to remove this complexity, allowing developers to either pay for the fees on behalf of customers or present/deduct these fees in USDC instead of ETH.
This should come as a big boost to the present horrendous transaction fees, which continues to plague the Ethereum network. Without a doubt, stablecoins contribute to the current DeFi boom the cryptocurrency space continues to see lately. DeFi users seeking to profit from collateralized positions borrow stablecoins such as USDT, USDC, Dai, etc., and deposit them into income-generating pools.
However, interacting with DeFi protocols like Uniswap, Curve and a few others, all happen on-chain. And since Ethereum presently cannot scale, users need are forced to increase transaction fees they pay to miners. This has brought Ethereum gas fees at an all-time high.
But with this latest USDC stablecoin feature where gasless sends are enabled in wallets, this should bring huge relief while the Ethereum community waits for Eth 2.0.
While USDC stablecoin enables gasless sends, Tether USDT integrates Layer 2
On the other hand, Tether, the largest stablecoin by market cap earlier integrated Omsisego. The Layer 2 solution helps to decongest Ethereum mainchain by settling batches of transactions in a sidechain. These batched transactions could then later be close them later on-chain.
On the overall, the USDC 2.0 update also introduces a new set of on-chain multiple-signature contracts. In addition to that, the Center has also shifted off-line human processes into on-chain multiple signature processes. These new consensus mechanisms should help improve transparency in operations as the stablecoin continues to grow.
USDC is presently the second-largest stablecoin with a $1.4 billion market cap as data from Coinmarketcap shows.
USDC.20 comes as a gamechanger among the classes of stablecoin with its new gasless send feature. Moreover, how this will further impact Tether’s competition is not fully clear yet.
Follow Cryptodose for daily updates