How NEXUS manages blockchain fees
Distributed ledger technology (DLT) also known as Blockchain is seen in the European Union as one of the transformative technologies of the financial sector. However, if you have attempted to interact with DLT, you may have noticed the current User Experience (UX) is not up to par. Industry experts agree that simplifying the UX is essential to onboarding the next wave of DLT users.
The challenge lies in making the technology accessible to the average user without requiring technical knowledge of private/public keys, transaction costs, transaction failure mechanisms, and confirmation time. By streamlining the user experience, users should be able to reap the benefits of DLT without being bothered by the underlying complexity of the technology.
At Quantoz, we have been doing our part to try and simplify the user experience as much as possible. We offer our partners tools to build their DLT-based applications with the easiest and most simplified features such as our Fee Payer functionality.
Transacting on a public DLT network entails that users pay transaction costs to network validators or minors in return for registering their transaction on the blockchain using the blockchain’s native currency (Eth for the Ethereum Network or Algo for the Algorand network). This property of public blockchain technology forces the users to always hold native currencies in their wallets regardless of whether they want to invest money in these tokens or not.
However, using NEXUS’s Fee Payer functionality, our application builders can issue tokens and offer them to their clients without requiring the users to hold native currencies in their wallets. By subsidizing transaction costs application builders can create a more seamless experience for the user and possibly add another revenue stream should they choose to charge a premium for that service.
When logging into the NEXUS platform, the NEXUS operator can check the status of his fee-payer accounts through the issuer dashboard by checking three different statuses: AVAILABLE, LOCKED, LOWBALANCE.
If the NEXUS operator would like to have a deeper check on the status of his Fee Payer accounts, they can go to the Fee Payers tab under settings. In that view, the NEXUS operator can view the public key of his different accounts on the respective blockchains, their statutes, and balances among other properties. The operator can then take action to top up the accounts if the balance drops below a certain level ensuring continuous service to his end users while still managing his cash flow.
If you are interested in learning more about this functionality please feel free to reach out us and ask for a demo of our tools.
Get in touch to discuss how we can help you
Henri de Jong
Chief Business Development Officer
3526 KS Utrecht
Registration number: 86401386