What is Biconomy?
Biconomy is one of the outstanding companies rooted in India, paving its way into the Web3 space. The company provides a cross-chain layer infrastructure handling transactions and gas payments bridging applications into Web3. It also owns the BICO token, which has been listed on many exchanges.
While many Web3 applications are built on Ethereum, the increased traffic is causing congestion on the blockchain. The congestion significantly raises gas prices forcing developers to seek alternative chains for their applications.
Impact on Web3
Biconomy's network allows gasless transactions bringing down all costs for decentralized finance (DeFi) applications facilitating Web3 transactions. Some of its well-known products include Mexa, Forward, and Hyphen.
Mexa facilitates gasless transactions in decentralized applications (Dapps). Forward on the hand, allows users to pay their transaction fees using tokens instead of gas. Hyphen, the final product, provides fast and less expensive token transfers through different blockchain networks.
The combination of these products renders the protocol multiple uses. Users are empowered with the freedom to enjoy seamless gasless transactions while still interacting with layer1 and layer2 solutions. With time, it can be integrated into any Web3 platform with crypto-enabled transactions.
Many developers are already leveraging Biconomy and its multi-chain stack, offering a better user experience in Web3 products in de-Fi, NFTs, and gaming, among others. Users are provided with the following:
• Plug-and-play Application Program Interfaces (APIs) and Software Development Kits (SDKs) – Among the network’s core features are APIs and SDKs that aid developers in building dApps with incredible user experience.
• Gasless Transactions – With most Web3 apps, users must pay a gas fee for their utility. This cost hinders the mass adoption of Web3 products. As with platforms like Netflix, users do not pay server fees every time they watch movies. Similarly, Biconomy users are free of charge.
• Multiple Currencies – While most Dapps are built on Ethereum, their dominant payment option is ETH. Biconomy supports multiple tokens and allows users to make payments with their preferred currencies.
• Simplified User Interface – Interacting with Dapps entails creating blockchain transactions requiring crypto knowledge and technical; experience. In this case, the user interface has been optimized to the highest levels of simplicity.
• Cross-chain Transfers – It is not easy to make transfers between chains. The inherent multi-chain characteristic facilitates transactions on blockchain arrays and L2s. It also eases communication while securing value from different chains.
Biconomy Coin Functionality
Biconomy’s native token is BICO, launched last year and runs as an ERC-20 token on the Ethereum blockchain. BICO has the following functions:
• Network Fees – The re-layer infrastructure network is maintained by node operators acting as validators and executors for settling and verifying transactions. Node operators must pay a transaction fee in $BICO when adding new transaction data on the chain and, in return, earn $BICO based on the work done on the chain.
• Stakeholder Incentives – BICO holders are entitled to earning passive incomes through staking. The Proof of Stake (PoS) and liquidity pool integrated into the network assert high security and 100% uptime.
• Network Governance (Voting rights) – BICO holders have the right to vote, submit requests, and feedback that, when incorporated, shape the future of Biconomy's milestones and endeavors. The governance operation model entails participating in numerous activities like changing the network code, adding and removing services, and allocating funds from the treasury.
Who is building the BICO crypto?
Biconomy foundation dates to 2019 with the following founders: Aniket Jindal, Sachin Tomar, and Ahmed Al-Balaghi. The team comprises Indian nationals with a great passion for blockchain technology. Jindal brings a wealth of knowledge after studying at the Prestigious Fudan University and years of experience working with Binance. Balaghi is a seed founder and investor in Polygon (previously the Matic network). Tamar has been an engineer at Samsung Electronics and an early Ethereum blockchain enthusiast.
According to BybitLearn, on 21 July, 2021, the trio raised $9 million through private funding led by the Mechanism capital. Other companies, like Coinbase ventures, have also invested in Biconomy. Additional significant fundraising includes the recent October, which totaled $11.5 million through the public sale of BICO tokens.
BICO hit its all-time-high (ATH) price, $21.87, in December 2021. While we have seen significant down trends in the market with the crypto winter, BICO is not exceptional. Looking into January 2021, it had dropped to $3.50, and as of the time of writing, it’s at $0.43995.
Biconomy is platform building for the future of DeFi and adoption for Web3. Each day, it onboards new partners and will reclaim its ATH in the coming days.
Putting it All Together
The performance of BICO has not been stellar. However, the developmental team demonstrates clear use cases for its outstanding innovations. Biconomy is looking to be a worldwide facilitator for Web3 transactions.
Author: John Walter
A tech enthusiast empowered with a passion for learning new technologies; loves to write and help others understand the Tech/Web3 niches.