Whenever cryptocurrency users make a transfer from their wallet, the request is pushed through to miners or nodes of the network. These miners then use high computing power chips to validate the transactions and approve the request so that the blockchain can record and store the details of the fund transfer. The funds are then sent to the intended receiver.
To ensure that miners on the network carry out their jobs at all times, the network rewards them in the blockchain’s native tokens. These rewards are collected from the senders of cryptocurrency in the form of transaction fees.
Transaction fees can vary largely from blockchain to blockchain. Some networks such as Ethereum have a static transaction fee model where they have a pre-defined fee for different transaction amounts. Others like Bitcoin charge a dynamic price depending on the network congestion and transaction amount. Senders can skip ahead of the queue of pending transactions by paying a larger amount as a transaction fee.
How Does Aladin Network Avoid Transaction Fees?
Transaction fees have been a matter of much debate in the blockchain space, especially in the case of networks charging a static fee. To set things right, Aladin cuts transaction fees out of the blockchain transaction equation.
Transactions of Aladin token on every product and application built on the Aladin network are completely free of cost. In the case of other cryptocurrencies, users have to allocate Aladin token worth between 0.01% to 0.05% of the total amount to process the transaction. The receiver directly receives the allocated amount in their wallet without the network making any deductions as a transaction cost. This is only to ensure that all users involved in the Aladin network hold some amount of Aladin tokens at all times.
How will end-users benefit?
Aladin aims to support developers and SMEs to develop a wide range of applications on the Aladin Network. Each of these applications, such as a payment processor, social interaction platform, a remit payment app, an advertisement or a management app, will have features that require users to make various transactions.
Unlike it is for Ethereum and other public blockchains for developing and using applications and smart contracts, Aladin users will enjoy the benefits of making all their actions and transactions on all Aladin-based applications free of any transaction charges.
What’s in it for developers and entrepreneurs?
As a building block of the Aladin network, developers and entrepreneurs too can build and deploy apps and contracts on the network without paying a transaction fee. This will eventually result in a lower cost of development.
On the other hand, no transaction fee for end-users will mean that app owners can sell their products and services for a lower price, hence, attracting a larger audience to their apps. As a result, developers can enjoy increased revenue from their products.
How does this help increase adoption?
Developers would be more inclined towards using the Aladin network over other blockchain platforms due to zero transaction fees and higher revenue. Besides, users would never have to pay for making any form of transactions on the Aladin network, helping the network attract a wider audience.
We humans tend to only pay for something when we know we don’t have a free alternative for that. And Aladin Network brings everyone that free alternative.