demystifying-gasless-trading-how-tanx-empowers-traders

Demystifying Gasless Trading: how tanX empowers traders

Demystifying Gasless Trading: how tanX empowers traders

Christine George

Industry

5

min read

Jan 23, 2024

Among the many features tanX boasts, ‘gasless’ is definitely one of the more prominent ones. While this term is pretty common, not all traders are fully acquainted with the concept and its potential impact on the crypto ecosystem. In this article, we break down gasless trading, its benefits and exceptions, and potential implications for the future.


Gas Fees: The Necessary Evil of Crypto Trading


Gas fees are undoubtedly a pain because they make trading less profitable and thus less feasible for traders, especially new users. How do they actually work? Here’s an analogy to help you understand:


Imagine gas fees are like tickets at a theme park. Every ride (blockchain based app) has a different price, depending on its popularity. When the park is crowded (more transactions), the lines get longer. If you want to get on a ride faster, you can get a ‘fast pass’ (pay higher fees) to jump the queue (prioritise your transaction). To save money on tickets, you can visit the park during off-season (less transactions). You can also purchase discounted tickets (layer 2 solutions) that offer you lower rates or let you skip queues.


When you trade on-chain, gas fees are unavoidable. So what is the solution tanX offers?


tanX reimagines trading without gas fees


The tanX platform provides gasless trading for users, an ideal solution for an issue that vexes the entire industry. It accomplishes this by using a Layer 2 solution called zero knowledge rollups to reduce gas fees considerably and then cover the rest so users can trade without hassle. Here’s a breakdown of how zk rollups work:


  • User transactions are processed by tanX and then reach the StarkEx service, where they undergo a validation process: parallel or sequential depending on the type of transaction.


  • Validated transactions are then grouped into batches and user balances are updated accordingly.


  • Next, StarkEx generates a "STARK proof" verifying the batch's validity and sends it on-chain.


  • Finally, an on-chain smart contract verifies the proof, and the balances are updated on the blockchain.


Even if the tanX platform goes down due to unforeseen circumstances, users can still withdraw their funds from the Ethereum contract because tanX is decentralised.


Since transactions are processed in batches, the gas fee per transaction is significantly reduced. Similar to how carpooling or taking public transport is cheaper than driving by yourself. Moreover, since the computations are performed off-chain, we save on gas fees there too.


Important note: When the rules don't apply


You might be thinking “But I pay gas fees while depositing/withdrawing, so how is it gasless?” 🤔


This is because the fees incurred during deposits and withdrawals are not determined by the platform, but the network itself to compensate miners for processing your transaction. While network fees can be frustrating, they're a necessary part of ensuring a secure, reliable and decentralised platform. So while you don’t have to pay anything for trading on tanX, you will still need to bear a nominal fee for withdrawals and deposits.


How much will you save using tanX?


For a single trade worth $1000, users may have to pay gas fees worth $2-10, which may be even more if they use an app with a dynamic pricing model. So that means an average of $200-$1000 for 100 similar orders and a whopping $2000-10000 if they place around 1000 orders. By switching to tanX, you can save all that and more. Not convinced yet? Read on!


Beyond savings: A deep dive into the benefits of gasless DEX trading


Gasless trading paves the way for a future of easy trading. Here are the transformative benefits this feature offers:


  • More profits: Users unlock significant cost savings, especially on high-frequency or smaller trades, leading to higher profit margins.


  • Easier access: Gasless trading eliminates a major barrier to the crypto space, attracting new users and boosting broader adoption of DeFi.


  • Better UX: By simplifying the trading process, gasless trading facilitates smooth trading and more user engagement.


  • Increased liquidity: The absence of gas fees also incentivises liquidity providers and promotes overall trading volume.


A Glimpse into Crypto's Future / The future of gasless trading and the potential impact on the crypto ecosystem


The ascent of gasless trading is an inevitable development that is bound to be a game changer. Imagine zooming through the cryptoverse without hefty gas fees slowing you down. That's the promise of gasless trading, and it's certain to revolutionise the industry.


Gas-free trading could erode financial barriers, and lower transaction costs might give rise to a new wave of users, particularly those excluded by the current fee structure.  Microtransactions, once deprioritised due to exorbitant costs, could become feasible again. Additionally, the increased efficiency of gasless systems could attract institutional investors, further increasing the legitimacy and stability of the crypto ecosystem.


Of course, this feature isn't without its challenges. The integration of gasless solutions into existing infrastructure will require careful planning and execution. Security and scalability remain key concerns, and finding viable solutions to address them will be crucial. Additionally, the burden of transaction validation might shift, potentially centralising power and raising concerns about decentralisation.


Despite these hurdles, the potential of gasless trading is undeniable. Gasless trading could propel crypto towards mass adoption and make it more accessible, creating a more inclusive digital landscape. Let's approach this new age of crypto with caution and optimism.


The Final Word

The gasless trading feature is reflective of tanX's commitment to providing a user-friendly and cost-effective experience for traders.


We’d love for you to experience the benefits of our gasless feature and share your valuable feedback. Try it on our platform and let us know what you think :)


Like what you see? Then be sure to follow us on X (Twitter) and join our Discord server to view more content from the tanX team!

Get Started with trading on the world's leading insto DEX right away!

Frequently Asked Questions

What are the different types of withdrawals available on the platform and what are the fees charged?

What is the estimated time for withdrawal to complete?

Why do normal withdrawals require more time to be processed than I expected?

Are tanX smart contracts audited?

Does tanX charge deposit fee?

Frequently Asked Questions

What are the different types of withdrawals available on the platform and what are the fees charged?

What is the estimated time for withdrawal to complete?

Why do normal withdrawals require more time to be processed than I expected?

Are tanX smart contracts audited?

Does tanX charge deposit fee?

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tanX helps you trade trustless without having to compromise on fees, swiftness, experience & liquidity.

© 2023 tanX.fi All rights reserved.

tanX helps you trade trustless without having to compromise on fees, swiftness, experience & liquidity.

© 2023 tanX.fi All rights reserved.

tanX helps you trade trustless without having to compromise on fees, swiftness, experience & liquidity.

© 2023 tanX.fi All rights reserved.

tanX helps you trade trustless without having to compromise on fees, swiftness, experience & liquidity.

© 2023 tanX.fi All rights reserved.