They built Biconomy (BICO) to profit from the simplification of decentralized finance (DeFi).
To explain, connecting to most cryptocurrency wallets is a complex and time-consuming process. For example, you could have to connect to a wallet, connect to a bridge app, purchase cryptocurrency or gas, connect to a virtual machine, connect to another bridge, go to a DApp complete the transaction, and sign two more times.
That process can take several minutes or longer. Moreover, each step in the process adds more things that can go wrong, such as apps that can fail. Additionally, each step is another vulnerability hackers and malware can attack.
Simplifying Decentralized Finance
Biconomy (BICO) claims it can reduce that process to 30 seconds and one-click. In depth, Biconomy promises a simple process of Go to DApp, Conect to wallet, complete transaction, and sign by txn. Hence, it reduces a complex process to four steps.
They claim Biconomy can easily batch multiple transactions and turn “complicated user journeys on a decentralized app (DApp) into a few clicks.” An obvious use of this technology is to make DeFi easier for ordinary people to use.
Biconomy simplifies transactions with smart contract wallets. A smart contract is a blockchain construct that performs a task. For example, a smart contract wallet can make or receive payments. The hope is to create a wallet smart contract that automates onboarding, offboarding, and payments.
Making Ethereum Access Cheaper
They claim Biconomy allows paymasters to offer gasless Ethereum Request for Comment (ERC20) tokens. To explain, gas is the fee you pay to make transactions on the Ethereum (ETH) blockchain.
Essentially, gas is the price users pay for access to the Ethereum Virtual Machine (EVM). The EVM is the digital computer that runs Ethereum. Without gas and EVM access, DeFi apps cannot access Ethereum.
Ethereum gas is expensive. Etherscan estimates that Uniswap paid $444,942.73 for 24-hours of gas on and $97,633.62 for three hours of gas on 6 February 2023. Biconomy claims it was lowering the gas tax by 14% on 6 February 2023.
Hence, one of Biconomy’s attractions is to make Ethereum access cheaper. This is a shrewd strategy because Ethereum is the world’s most popular blockchain. Etherscan estimates there were 766,552 contracts for ERC20 tokens on 6 February 2023.
Plug & Play Modules for Decentralized Finance (DeFi)
Biconomy (BICO) connects DeFi and Web3 solutions to Ethereum and other blockchains with a toolkit and plug and play modules.
For example, Biconomy offers a software development kit (SDK) that lets developers build access into Web2 and Web3 stacks. For example, the SDKi allows blockchain developers to create web2 type smart accounts for users that offers social logins, fiat on-ramps, fiat off ramps, one click interactions, and easy recovery.
To explain, a fiat on-ramp is a mechanism for bringing fiat currency, such as US dollars, into a blockchain ecosystem. A fiat off ramp is a mechanism that enables blockchain to pay in fiat currencies.
Hence, they built the SDK to make blockchain constructs easy for ordinary people to use. For example, an Ethereum ecosystem you can access through a mobile phone. They claim developers can add the SDK to a DeFi protocol in five minutes.
ERC-4337 compliant
In particular, the SDK offers access to ERC-4337 compatible smart contract wallets. To explain, ERC-4337 is an account abstraction proposal that avoids consensus layer protocol changes by reling on higher infrastructure. In other words, ERC-4337 is a direct connection to the Ethereum blockchain, that makes payments simpler.
ERC-4337 eliminates many protocol features. Instead, it creates separate mempool that bundles transactions to a special contract. A mempool is a waiting room area for unverified transactions. Transactions wait in the mempool until the node verifies them.
Biconomy can batch multiple transactions into a one click solution. For instance, many transactions can sit in the mempool until Biconomy can verify them.
One use of Biconomy (BICO) is to eliminate additional signs with session keys. For example, a dApp or game that asks for a key each time you try to play or use it.
How Many users can Biconomy Attract?
The goal of Biconomy is create an effortless user experience (UX) and fast and seamless onboarding. They claim users can scale user adoption fast.
Biconomy claims it had onboarded 3.5 million users and processed 28 million transactions as of 6 February 2023. Biconomy claims its users were being used by over 200 trusted brands with a total volume of over 200 billion transactions by 6 February 2023.
Furthermore, they claim Biconomy’s Network had processed 25 million Mainnet transactions and was receiving 3,000 requests per minute on 6 February 2023. Biconomy connects DApps to DeFi through a decentralized relayer network.
The Biconomy Network
The Decentralized Relayer Network uses Node Operators to take BICO to serve as relayer for the Biconomy Relay Protocol. The Biconomy Relay Protocol is a distributed set of nodes that manages user transactions across chains. Node operators earn premiums on gas fees.
Biconomy delegators stake BICO tokens to top-performing node operators who agree to share network fees and rewards. BICO is Biconomy’s work token, they pay it out as incentives for node operators who provide quality transactions. They also pay BICO out as incentives to liquidity providers. The liquidity facilitates cross chain asset transfers.
Some Biconomy users include Onyx by J.P. Morgan JP Morgan Chase (JPM), the Sandbox, Decentraland, dYdX, Beta Zed, 100 Thieves, animorca, brand and ₵. Investors in Biconomy include Bain Capital Ventures, CoinFund, Coinbase Ventures, Binance, Mechanism Capital, Fenbushi Capital, NFX, True Ventures, Ventures, Woodstock, Morningstar Ventures, Eden Block, Chorus, and Outlier Ventures.
What Value does Biconomy Offer?
Mr. Market sees some value in Biconomy (BICO). For example, Biconomy was CoinMarketCap’s 16th most trending cryptocurrency on 6 February 2023.
In contrast, CoinMarketCap gave Biconomy a 162nd ranking, a 40.88₵ Coin price, a $190.941 million Market Capitalization, a $408.959 million Fully Diluted Market Cap, and a $7.821 million 24-Hour Market Volume on 7 February 2023.
Plus, Biconomy had a $7.81 million Centralized Exchange (CEX) Volume on and a $4,916 Decentralized Exchange (DEX) Volume on 7 February 2023. They base those numbers on a Circulating Supply of 467.144 billion BICO and a Total Supply of one trillion BICO.
I think Biconomy (BICO) is an interesting DeFi token because it offers a solution that could reach ordinary people. Hence, it could achieve far greater use because it can reach ordinary people with fiat currency. However, I predict it will take years for Biconomy and similar solutions to achieve high levels of amounts of use.
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