Lava Network Explained

Lava Network Explained

Other Topics
August 2, 2018 by matthewrobinson
1164
What is the Lava Network? The Lava Network is still under development but it is a way for users to transfer ERC20 tokens without needing an Ether. Instead, they can pay a relayer an ERC20 token so that the relayer pays the ETH gas fee for them. Here are some examples that demonstrate how the
lavaaaa puic 2

What is the Lava Network?

The Lava Network is still under development but it is a way for users to transfer ERC20 tokens without needing an Ether. Instead, they can pay a relayer an ERC20 token so that the relayer pays the ETH gas fee for them. Here are some examples that demonstrate how the Lava Network can help Ethereum:

Buying and storing ERC20 tokens

In the status quo if you buy an ERC20 token, you need to keep some residual amount of Ether to transfer that ERC20 token back to your wallet. This makes it difficult to buy the maximum number of ERC20tokens, especially because gas prices vary. With the Lava Network, users can buy the maximum number of ERC20 tokens as like without having to worry about leaving a residual amount of Ether in their wallet. Users would then be able to send a small fee of their erc20 tokens to a relayer so that the relayer would pay the ETH for them.

Distributing mined tokens from a mining pool

Distributing mined tokens from a mining pool requires ETH for gas fees, but the mining pool is for ERC20 tokens. The pool operator incurs a fee in ETH even though they are controlling a separate ERC20 operation. With the Lava Network, the distributor could pay a relayer a fee in an ERC20 token so that the relayer would pay the ETH gas fee for them. That way, the distributor would not have to worry about holding any ETH.

Existing token mining pools require a minimum number of tokens to be mined before they distribute those tokens to miners. With a particular 0xBitcoin mining pool for example, miners have to accrue at least 5 0xBitcoins before receiving their earned 0xBitcoin. The minimums exist likely because the distributor has to pay a gas fee in ETH. Ideally with the Lava Network, a token miner would be able to redeem their mined tokens at any time because they could use their earned ERC20 tokens to effectively pay for the gas fees.

Airdrops

ERC20 token airdrops require ETH. With the Lava Network, airdrop conductors could distribute their tokens without ETH by paying others in the form of their token (or any token) to pay the ETH gas fee for them.

ERC20 Tipbots

ERC20 tipbots require ETH to payout their recipients. The problem with ERC20 tipbots is that they may not receive ETH, which means that they will not have the ETH to distribute their tips. With the Lava Network, tipbots will be able to distribute their ERC20 tips without holding any ETH.

Want more information?

Please visit the 0xBitcoin Discord and talk to some of the developers! https://discord.gg/24jMksh