If you’re not familiar with Argent, it’s an Ethereum smart wallet for iOS and Android that has been around for a few years. It is a non-custodial wallet, meaning you are responsible for your money and everything you do is recorded on the blockchain.
In recent years, gas fees have been the biggest pain point in Ethereum transactions. It can be quite daunting when you’re starting out with cryptos and your wallet says you have to pay $30, $45, or even $60 in gas fees to validate a transaction.
Because of this, several teams have been working to solve this problem. To reduce transaction fees, transactions could be settled outside of the main Ethereum blockchain (Layer 1). And these projects are called Layer 2 solutions.
Some people believe that there will be multiple blockchains (or sidechains) that offer different advantages and disadvantages. Blockchains like Polygon (formerly Matic) or Avalanche are compatible with the Ethereum Virtual Machine (EVM), which means that it doesn’t take much work to switch from one blockchain to another.
Others believe that some transactions are settled outside of the main Ethereum blockchain. Essentially, transactions are sent to Layer 2 nodes so they can be processed and batched together.
When there are enough transactions, a group of transactions are pushed to the main Ethereum blockchain. Once on the main Ethereum blockchain, these transactions cannot be modified.
Zero-knowledge rollup implementations such as zkSync are particularly cost-effective because a proof of validity is generated based on hundreds of transactions. This validation is then sent to the main Ethereum blockchain and Layer 2 transactions cannot be modified as they do not match the validation.
And that’s exactly what Argent chose as a scaling solution. “We’ve waited quite a long time. We skipped many short-term options in order not to compromise,” Itamar Lesuisse, Argent’s co-founder and CEO, told me. “So our approach was a bit more idiosyncratic,” he added.
The company promises gas fees for Layer 2 transactions that should be as low as $1 per transaction. 500,000 people have joined the waiting list since Argent started working on Layer 2 accounts.
“From Monday you start your life on L2, you buy cryptos on L2,” Lesuisse said. Argent’s existing Layer 1 wallets will not go away, but they will not be the default wallet. They are called “vaults” to reflect the fact that they are intended for wealthy individuals with multi-million dollar crypto assets.
With this move, Argent hopes it can attract a new audience of mainstream crypto enthusiasts. Finally, Argent wants to build some kind of financial super app for Web3 and DeFi. “Revolut really is the inventor of the financial super app and we believe we can go beyond that,” said Lesuisse.
After that, users can also exchange cryptocurrencies on a decentralized exchange in the app. Argent used ParaSwap as a decentralized exchange aggregator to find the best trading pair based on what you are selling and what you are buying.
Argent also allows you to earn interest on your crypto assets through DeFi protocols from various partners such as Yearn, Lido, Aave, and Gro. “We kept it limited because the Layer 2 experience is much more streamlined. The more concentrated the demand, the lower the costs,” said Lesuisse.
Layer 2 represents a fresh start for Argent. Besides low transaction fees, the company doesn’t think the current experience with non-custodial wallets is great, especially because of the concept of seed phrases.
“That old model with a key and a post-it note in your drawer is never going to be the way we handle money,” Lesuisse said. Argent doesn’t have an exit phrase. You can back up your wallet with your iCloud account or with guardians. Your friends can act as guardians and help you recover your wallet.
But Lesuisse is also aware that most people just go to Coinbase and buy some cryptos. With today’s update, the company wants to change that. “The largest wallet without custody is MetaMask but our main competitors are centralized exchanges,” he said.
Crypto startup Argent wants to put an end to gas fees with Layer 2 wallet – TechCrunch Source link Crypto startup Argent wants to put an end to gas fees with Layer 2 wallet – TechCrunch