Permissionless Paymaster for Non-Native Cryptocurrency Fees
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Solution Overview
Problem
Users face inefficiencies and resource consumption when interacting with multiple blockchain networks due to the volatility of native cryptocurrencies, requiring frequent conversions and additional transactions to pay transaction fees, which diminishes user experience and increases technical overhead.
Innovation Solution
Implementing a permissionless paymaster in the chain network that allows users to use non-native cryptocurrencies to pay transaction fees in native cryptocurrencies, utilizing a centralized liquidity source to provide native cryptocurrencies from an exchange contract and distributed exchange.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If users use native cryptocurrency to pay transaction fees in chain networks, then transaction fees can be accounted for directly, but users face volatility issues and must constantly re-evaluate transaction costs against fiat currency
Solution Approach 1:
The patent introduces a wrapped cryptocurrency mechanism where a stablecoin (wrapped token) acts as an intermediary between fiat currency and native cryptocurrency. Users deposit fiat currency into a smart contract that mints wrapped tokens representing the deposited amount. These wrapped tokens can then be used to pay transaction fees on-chain, eliminating the need for users to directly hold or manage volatile native cryptocurrencies while still enabling seamless transaction fee payment.
2Ease of operation
If users convert cryptocurrency from one chain network to another to pay transaction fees, then transaction fees can be paid in the correct native cryptocurrency, but this conversion process consumes technical resources and diminishes user experience
Solution Approach 1:
The patent creates a universal wrapped cryptocurrency that can function across multiple chain networks without requiring conversion between different native cryptocurrencies. The wrapped token serves multiple functions: it represents fiat value, can be held as a store of value, and can be used to pay transaction fees on various chains. This multi-functionality eliminates the need for users to perform conversions when interacting with different networks.
3Productivity
If users hold native cryptocurrency to pay transaction fees, then transaction fees can be paid directly, but users must initiate conversion transactions that consume technical resources on user-side computing devices
Solution Approach 1:
The system implements self-service through automated smart contracts that handle the wrapping and unwrapping of cryptocurrencies. When users deposit fiat currency, the smart contract automatically mints wrapped tokens. When users need to pay transaction fees, they simply use the wrapped tokens on-chain, and the system automatically handles the fee payment and unwrapping process. This eliminates the need for users to manually initiate complex conversion transactions or manage multiple native cryptocurrencies across different devices.
Data Source
AI summary
Implementations for account creation within chain networks include creating, by an account factory executed in a chain network, an account for a user within the chain network, the user providing an amount of non-native cryptocurrency to the paymaster to account for a transaction fee for creation of the account in a native cryptocurrency provided from a centralized source of native cryptocurrency, determining, by the paymaster, a maximum transaction fee for creation of the account, the maximum transaction fee being provided in a non-native cryptocurrency, transferring, by the paymaster, the maximum transaction fee from a source of non-native cryptocurrency to the paymaster, after creation of the account, determining, by the paymaster, a total cost of the in the non-native cryptocurrency, and transferring a refund amount from the paymaster to the account based on the total cost, the refund amount being in the non-native cryptocurrency.