Gas Station Networks (GSN)

Understanding Gas Station Networks (GSN)

The Gas Station Network (GSN) is a decentralized network of relayers primarily associated with the Ethereum blockchain.

Its purpose is to enable the development of decentralized applications (dApps) that offer transaction payment options without requiring users to hold Ether (ETH) for gas fees.

This simplifies the onboarding process, enhances user acquisition, and improves overall user experience.

Simplifying Transaction Costs

In the GSN, relayers do not charge users directly for transactions; instead, they charge the recipient and the smart contract.

By doing so, relayers can cover the transaction costs and earn additional fees for providing their services.

Enabling User Onboarding in Ethereum

The concept of the GSN was originally conceived and designed by TabooKey.

Over time, it has expanded to include various companies, protocols, and platforms within the Ethereum ecosystem that aim to facilitate user onboarding for Ethereum applications.

Sustained Success of Gas Station Networks

Despite Ethereum’s reputation for slower transaction speeds and high fees during network congestion, GSNs continue to thrive because their charges are relatively more affordable than the capital required for traditional marketing, user acquisition, and onboarding strategies.

Evolving Gas Station Networks

GSNs have also evolved and improved, offering greater convenience.

Some GSNs allow users to pay the platform or recipient off-chain in advance using traditional methods such as credit cards.

Each GSN usage deducts from the user’s balance on the recipient platform’s system.

In terms of reliability and security, GSNs are designed to incentivize relayers to process requests correctly.

Measures are in place to penalize relayers for any malpractice.

These smart contracts automate these mechanisms, significantly enhancing reliability and user experience (UX).