TrustToken, the developer and issuer of TrueUSD, has come out with a novel method for crypto exchanges to manage millions of addresses associated with TrueUSD and other ERC20 tokens. TrustToken has developed the first publicly available means of easily handling thousands or millions of addresses within a single wallet, thus reducing the amount of Gas (Ethereuem used for transaction fees) required for the maintenance of wallets accepting TUSD.
The update to the TrueUSD smart contract does not only have to apply to TUSD. The token’s code is open-source, so other tokens and outfits can replicate the method.
In a press release Monday, TrustToken Head of Engineering Rafael Cosman describes the technology as such:
While exchanges are currently able to set up individual addresses for users, there is no standardized process for the backend accounting for how these accounts are settled, and each transaction requires gas payments. AutoSweep is the first implementation of an ‘alias’ feature for an Ethereum-based token and allows exchanges to significantly improve both the accounting structure and save on time and gas cost by automatically sweeping user accounts to the central wallet.
The press release includes the following diagram of how the process works:
Lead engineer Terry Li says:
The AutoSweep features, while first deployed with TrueUSD, have big implications for the Ethereum blockchain more generally, and could be applied to any Ethereum token.
Transaction fee savings can transfer to traders. Exchanges can create up to 1,048,576 Ethereum wallet addresses using AutoSweep. For many, this covers their entire user base. By integrating the code into exchange back-ends, gas savings might be many thousands of dollars.
A recent, single Ethereum block included 0.04944099 Eth in transaction fees. While at today’s prices this is not a very large amount of money, those who spent the cryptos today will be glad for any mechanism that saves them funds in the future during another bull run.
The costs to execute smart contracts can be far higher, depending on many factors in Ethereum. For example, a recent transaction to move just .7 TUSD ($0.70) to an exchange cost the user $0.09 or 0.00072936 Eth.
Some people like Jeffrey Tucker believe transaction costs can prohibit adoption if they are not controlled. TrueUSD understands this and believes that creating efficient transactions is essential to its scaling strategy:
With the TrueUSD market cap over $200 million, efficient token management has become key to efficiently scale.
Featured image from Shutterstock.
Last modified: September 26, 2020 6:53 PM