Understand Biconomy in 3 Minutes: A Multi-Chain Relayer Protocol for Simplifying Transaction Experience

Source: Coinlist Blog

Compiled by: Richard Lee, Chain Catcher

Biconomy is the multichain transaction infrastructure for the next generation of Web 3.0 applications. With Biconomy's plug-and-play API, anyone can use decentralized applications (dApps) without any knowledge or experience in cryptocurrency. Biconomy is dedicated to addressing key pain points in cryptocurrency transactions, bringing the familiar Web 2.0 user experience into Web 3.0 to simplify processes and drive mass adoption.
Recently, Coinlist had an in-depth conversation with the project team about the solutions the project offers, token use cases, and more. Below is the compilation by Chain Catcher:
1. What is Biconomy? What problems does it solve?
Biconomy is a multichain relayer protocol that simplifies the on-chain transaction process for end users. Any dApp can use our plug-and-play API to provide a smoother user experience. Currently, the key issue regarding cryptocurrency usability is the complexity of blockchain transactions. Users must be proficient in crypto wallets, handle gas fees, actively manage each transaction, transfer funds across chains, and more. Even after completing these tasks, they still face long wait times and the frustrating experience of transaction failures.
For crypto newcomers, they face a daunting learning curve from the start, which can easily deter them. More importantly, dApp teams must invest time and effort to educate users about blockchain technology. Mainstream users do not want to deal with these cumbersome blockchain challenges.
This is where Biconomy comes in. Biconomy provides dApps with a simple and quick way to rescue users from complex processes. We achieve this through our unique products, Gasless, Forward, and Hyphen, which can be easily accessed via our API and SDK.
2. Who is your target audience and existing user base? What interactions do you hope your users will have with Biconomy?
Our target audience includes any dApp deployed on the public chains we support, such as Ethereum, Polygon, xDai, Moonriver, and other blockchain networks. These crypto applications can leverage our API to delight their crypto-native users and crypto newcomers. The projects we currently integrate come from the NFT, DeFi, gaming, and payment sectors. We serve crypto applications across more than 70 mainnets and add a new partner almost every week.
Any Web 3.0 project can integrate Biconomy to provide users with a gas-free experience. So far, we have processed over 8 million transactions, with more than 50,000 transactions handled daily. Developers can also use our cross-chain transfer product, Hyphen, to enable instant cross-chain transfers within dApps, allowing users to access funds on the corresponding public chain without leaving the crypto application.
End users can also use Hyphen, as it comes with its own UI, enabling users to quickly and cost-effectively transfer assets to any blockchain network.
Ultimately, we envision users having a fast, secure, and very low-cost cross-chain experience. They will need to pay gas fees when transferring tokens, but the entire interaction process with the dApp will be gas-free. We also hope to develop other interesting use cases and transaction flows.
3. What are the advantages of building a multichain protocol?
We believe that a Web 3.0 network composed of multiple chains, along with the increasing accessibility and visibility of dApps on each chain, is truly exciting. As the space evolves, we will have a variety of applications, use cases, assets, and users across different public chains and layers. Some may prefer security, while others may pursue speed or lower gas fees. Some crypto applications may be best deployed on Layer 1, while others may be more practical on layers or rollups. All these ecosystems will be seamlessly connected through our multichain relayer infrastructure.
Therefore, we have always been clear that we need a multichain strategy. For the Web 3.0 network to have the potential for mass adoption, it must ensure that users have the same seamless experience even if crypto applications and smart contracts are on different public chains. The more the market shifts towards a multichain trend, the greater the demand from developers and end users to eliminate friction.
4. What are the use cases for Biconomy's native token BICO?
BICO is the native utility and governance token of our multichain relayer infrastructure. It plays a key role in enhancing the decentralization of the Biconomy network by serving as network fees, incentivizing stakeholders to protect and maintain the network, and participating in network governance.

• Node operators (validators and executors) stake BICO to protect and participate in the network's operation. They must pay a transaction fee in BICO when adding any information on-chain. The BICO they earn is proportional to the work they do on the network.
• Validators monitor relevant transactions on other chains and record them on the Biconomy chain.
• Executors see these transactions and take action (whether they come from Hyphen or gasless transactions).
• Token holders can also stake their tokens as delegates and earn staking rewards.
• Anyone can add liquidity to our liquidity pool in various tokens to earn $BICO rewards.
• Finally, token holders can participate in the governance of the protocol in the future.
  5. The Biconomy dApp ecosystem is continuously growing. Which dApps are using your protocol, and how is their experience?
  Currently, there are over 70 dApps in the Biconomy ecosystem. Some dApps using Biconomy include Zed Run, Perpetual Protocol, Dfyn exchange, Showtime, Idle Finance, Aavegotchi, Decentraland, and more.
  From the feedback received, their experience has been very positive. Our partners are particularly pleased to provide an excellent user experience for end users. Additionally, from a development perspective, we have received great feedback, including how quickly and conveniently our solutions can be integrated, and the high scalability of our infrastructure (easily handling over 1500 transactions per second).
  6. What crypto trends are you most interested in over the next six months?
  We are currently excited about the following trends:
• The overall explosion of Play to Earn and crypto gaming
• Interactive and smart NFTs
• What new use cases will emerge from the merger of DeFi and NFTs
• Seamless cross-chain infrastructure and user experience
• The evolution of DAOs and its impact on the broader market