Case Study: Automated transaction fee solution

The Challenge

When a new asset has been created on a certain coin (byte in this case), but the underlying chain requires transaction fees to made in the original currency, the user must keep two currencies in the wallet just to make transactions. Since transaction fees are not fixed for different types of transactions then keeping enough of underlying currency in the wallet is quite inconvenient.

The Solution

Ignite has developed an automated transaction fee solution that allows to exchange assets without being required to know about underlying currency for fees payment. This solution takes advantage of exchange hubs to provide the necessary underlying currency. As exchange hubs work similarly to witnesses, independently from each other, then any client has the possibility to become a hub. As there are many offers from various exchange hubs at any given time then the client who needs this exchange service has a chance to choose the best exchange rate or offer available.

To be able to offer exchange services, a hub shares a richly funded address with clients. Once a client needs to make a transaction it would use the chosen exchange hub address for the transaction fee payment. The hub and the client will then sign the transaction to proceed. Such shared address solution enables each client wallet to contain one address per hub it is subscribed to in addition to its own address.

The Results

At Ignite we tackle various technical challenges constantly and provide solutions to meet the project needs. Such system enables to make transactions in the currency that the customer holds in his/her wallet and allows to pay the transaction fees in another currency transparently. Given shared address solution can be modified with ease to various other cryptocurrency platforms in the future, creating value for the whole community.