Could Representative Assets Be The Key To Fees Arbitrage

in HODL27 days ago

Hey Jessiethreum Holders

There is so much lip service when it comes to crypto being for the unbanked, and that is cheap and fast, but there's nothing cheap and fast about chain congestion on the likes of Ethereum where it hurts to pay $17 to make a transaction.

Not too long ago, BTC was up to $55 a transaction and insane waiting times. We'll never get to the unbanked with fees like that, for me to move my currency off an exchange or to an exchange. I am being burned.

We talk so much about not your keys, not your coins but we're punishing users to doing the right thing and taking their coins off exchanges, fees are getting out of hand and its starting to encourage and reward bad behaviour.

Why would I want to give up money to fees if I can leave it on Binance? Only a long term HODLr would think it's worth it and of that, there aren't many. As more assets come online in various chains, some are getting stuck, how many tokens on ETH are now not worth moving because of the gas price? It seems an inefficient way to transact if you ask me.


Wrapping it up

I've spoken previously about wrapped tokens which I think will continue to become popular; I won't be surprised to see more of them on other smart contract chains and even more swap options on HIVE in the future. I think as fees continue to be a problem, we will need a fee market and wrapped asset market.

A user can then transfer his asset via the chain with the cheapest fee at the time, and these chains will arbitrage their network efficiency between one another.

For example, I can send swap.BTC to a user on HIVE for zero transaction fees. What would that do for ETH holders today, if they could use a Swap.ETH on HIVE and send their ETH around bypassing transaction costs and performing micro-transactions such as tipping users in ETH.

Representative assets are here to say

In future for example having BTC and wanting to transfer,

  • I could do it on-chain to secure it in my wallet.
  • I could do it on the lightning network for a quick cheap transfer.
  • I could transfer on ETH because I want to use DE-FI or do some arbitraging
  • I could transfer it to HIVE to do some tipping
  • I could transfer BTC via TRON for gambling
  • I could transfer BTC via EOS for dapps Id like to use

Having the ability to use BTC on any chain opens up so many opporuntites for users and I think that it's only going to get bigger. Cross chain assets are going to be all the rage and exchanges and DEX's are going to be busier than ever as we create a subsystem for atomic swaps.

It may start the fees race and as users look for the cheapest way to transfer, it brings down cost, but could lead to more unbanked users finding cheaper ways to get into BTC and hold an asset that is shaping this industry.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase

Browse & Earn CryptoStack Sats For FreeEarn Interest On Crypto



So buying a wraped btc at ex dash blockchain Will be One way to buy and transfer btc and eth Cheaper?
I understand that I can buy wrap leo at Eth as an example But.. how to unwrap it so I get the real crypto (leo this time)

Yes, it will allow you to get a sort of IOU the real BTC and then use it on the various chains move it around, invest it in projects etc. If you had wLEO or any wrapped asset on ETH you need to find their official smart contract website for leo its this one

You add your hive username and then send the wLEO the ETH address with the ID and it will unwrap into your account. It will cost you the ETH fees, lets say $6 so if its anything less than 45 LEO you'll get nothing, best to work with large amounts of LEO on ETH

!ENGAGE 20 or wrong trigger word?

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

Hola chekohler,

Gracias por destinar correctamente el 100% de las recompensas de está publicación a HP y ayudar al crecimiento de tu cuenta.

Thanks for allocating the 100% rewards of this publication to Hivepower.

Si no deseas recibir notificaciones, responde a este comentario con la palabra STOP.

If you don't want to be notified, answer this comment with the word `STOP`.