MetaTransactions: Optimizing Blockchain Interactions
Metatransaction is a transaction that executes a transaction signed by another party on behalf of the original signatory, sending the original transaction to the public blockchain.
What is Metatransaction?
A metatransaction is a helper that executes a transaction signed by another party on behalf of the original signer, sending the original transaction to the public blockchain so that the person does not do it themselves.
In a public ledger, transactions are signed by the person executing the transaction. Transactions go to mempool, a database of unconfirmed or pending transactions that is stored on each node. Here, the miners incorporate the signed transaction into the next block.
During this process, the person performing the transaction pays a commission (gas), placing all responsibility on the user performing the transaction. In addition, users have to pay a commission in their own token chain – even when using dApps or protocols that have their own token.
The dApp developers may see this as a good opportunity to offer a commission-free experience and sponsor commission fees for some or all users to increase user engagement. They could also allow users to pay commission fees only with their native token. Both scenarios would use a metatransaction, so they would be the ones managing the standard transaction chain and paying the necessary commissions. The user simply signs what is required and pays according to the developer’s instructions, their token or a zero transaction fee.
The advantage of metatransactions is a smoother user experience. They remove the complex and costly aspects of trading on the blockchain from users and place these responsibilities on the developers or relay infrastructure already involved in the back-end.