Blockchain technology company StarkWare is set to launch Volition, a new product for the permissionless Starknet network. The solution aims to significantly reduce transaction fees on the Ethereum network, making micropayments feasible and facilitating broader adoption of cryptocurrencies.
Volition, scheduled to be deployed with Starknet later this year, addresses the long-standing concern of high Ethereum gas fees. According to StarkWare CEO Uri Kolodny, the solution will eliminate the major barrier to microtransactions and enable “crypto for coffee” transactions. Kolodny also emphasized the importance of this development for crypto adoption, particularly in developing economies.
The current average transaction fee on Ethereum stands at around $4.80, considerably lower than the peak of over $27 recorded last month. However, these fees still hinder the mainstream use of Ethereum.
In April, the surge in popularity of memecoins caused Ethereum gas fees to skyrocket, resulting in increased daily revenue for ETH but also network congestion and difficulties in processing transactions. Volition aims to overcome this obstacle and unlock various use cases that were previously impractical within the Ethereum ecosystem.
Aside from enabling crypto for coffee transactions, Volition opens doors for on-chain voting governance applications, non-fungible tokens (NFTs), and in-game asset purchases. The reduced costs associated with on-chain voting are expected to make decentralized autonomous organizations (DAOs) more accessible, eliminating the common issue of users missing voting opportunities due to high fees.
Furthermore, the solution liberates game designers by providing the flexibility to offer a wider range of assets at different price points, making the gaming experience more immersive.
StarkWare claims that Volition has the potential to reduce gas fees by up to 90%. The solution provides users with greater control, allowing them to make informed decisions about when to utilize cheaper or more expensive on-chain storage options.
Volition is expected to have diverse applications, including decentralized exchanges (DEXs), where traders can reduce fees by keeping funds on the Layer-2 level and prioritize security by moving them to Layer-1 when necessary.
Volition was initially used on StarkEx, a permissioned version of Starknet for protocol use. It is scheduled to go live on Starknet in the third quarter of 2023. The launch of this innovative scaling solution is poised to revolutionize the Ethereum network, making it more accessible, affordable, and efficient for users worldwide.