What are Gas Station Networks (GSN)?
Let's find out Gas Station Networks (GSN) meaning, definition in crypto, what are Gas Station Networks (GSN), and all other detailed facts.
GSN is a decentralized network of relayers that is mostly focused on the Ethereum blockchain. It enables you to create decentralized applications (DApps) that provide payment for transactions, removing the requirement for users to hold Ether (ETH) to pay for gas. This makes the onboarding process easier and improves the user experience.
The GSN was created by TabooKey and has now evolved to include many protocols, companies, and platforms in the Ethereum ecosystem. Various companies choose GSN to make the process of user onboarding with the Ethereum applications easier.
Note that the relayers in the GSN charge the recipient and contract but they don’t charge users. As a result, the relayers recover transaction expenses and earn from additional fees for offering such services.
It might seem that the GSN is an expensive investment due to the fact that the Ethereum network is known for sluggish transaction speeds and excessive fees when it is overloaded. However, GSNs are still thriving because their fees are far less expensive than the capital required for user acquisition, traditional marketing, and new user onboarding.
Besides, GSNs are convenient because they allow users to pay the platform or recipient off-chain in advance using regular payment methods like credit cards. With each GSN usage, the money is deducted from the user balance on the platform of the recipient.
In terms of reliability and security, GSNs are designed in such a way that it is in the best interests of relayers to properly process requests from the platforms they serve. This is the case because they get penalties if they don’t. In addition, smart contracts automate all of this, which greatly enhances user experience (UX) and reliability.