The Ethereum network is renowned for its robust smart contract capabilities, but it also faces challenges with high transaction costs, known as gas fees. These fees can become a significant barrier for users and developers. To address this, innovative solutions like gastokens have emerged. One such solution is Chi Gastoken, introduced by the 1inch team, designed to help users optimize and reduce their gas expenditures significantly.
This next-generation gastoken leverages advanced mechanisms to make transaction processing more efficient. By understanding how Chi works, users can unlock substantial savings, especially for high-gas operations like deploying smart contracts.
What Is a Gastoken?
Every transaction on the Ethereum blockchain requires computational resources, which are paid for in gas. This gas compensates miners for the energy used to process and validate transactions. However, gas costs can fluctuate based on network congestion, leading to expensive operations.
A gastoken is a clever tool that allows users to perform the same amount of work while using less gas. It operates by utilizing Ethereum's storage refund mechanism. To encourage efficient use of blockchain storage, Ethereum offers refunds when smart contracts erase unnecessary data. During the minting process, gastokens fill up storage, and during burning, they erase it, triggering a refund.
The most efficient method involves creating and destroying sub-smart contracts rather than direct storage writes and erasures. This approach maximizes the refund potential, making transactions cheaper.
How Chi Gastoken Improves Efficiency
Chi is inspired by the original GST2 gastoken but introduces several key enhancements for better performance. These improvements focus on optimizing gas usage during both minting and burning processes.
- Reduced Smart Contract Address Size: By using a specialized address generator, the Chi team decreased the size of sub-smart contracts by one byte. This reduction might seem small, but it contributes to overall gas savings.
- CREATE2 Instruction: This Ethereum feature allows for more efficient address discovery during the burning process, streamlining operations and reducing gas costs.
- ERC20 Compatibility: Unlike its predecessor, Chi is fully compatible with the ERC20 standard, ensuring seamless integration with existing wallets and decentralized applications.
These technical advancements make Chi approximately 1% more efficient for minting and 10% more efficient for burning compared to GST2.
Practical Applications of Chi Gastoken
Chi tokens are particularly useful for operations that require substantial gas, such as deploying smart contracts. Without optimization, contract deployment can cost between $5 and $10 per million gas units. By burning Chi tokens in the same transaction, users can reduce these costs by nearly half.
To facilitate this, tools like Deployer.eth have been developed. This tool simplifies the process of deploying contracts with gas savings. Integrating Chi support into any smart contract requires only a few lines of code, using a modifier that automatically burns Chi tokens based on gas consumed.
Developers can choose to burn tokens from the user's wallet or the contract itself, depending on the setup. Proper approval and token allocation are necessary for smooth operation.
Minting Chi Tokens
Users can mint Chi tokens through platforms like Etherscan or directly on the 1inch exchange. On 1inch, the Chi Minter tool allows users to swap assets like ETH for Chi tokens. It is essential to deactivate other exchanges to focus solely on minting.
The minting process is capped at 140 tokens per transaction due to block gas limits. This limit ensures miners include the transaction, as it remains profitable for them. For example, swapping 1 ETH at a gas price of 20 GWEI might only spend approximately 0.1 ETH on minting, not the full amount.
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Note: Minting with low gas prices can cause wallet issues. Using a separate wallet for minting is recommended to avoid disruptions.
Trading Chi Gastoken
Chi tokens are tradable on decentralized exchanges like 1inch. Users can select Chi as the source token and choose any desired destination token. The exchange automatically finds the best market price for the trade.
Chi tokens behave like tokenized versions of Ethereum gas prices. When network gas prices rise, the value of Chi tends to increase, and vice versa. This correlation makes Chi not only a utility token but also a potential hedging instrument against gas price volatility.
For those preferring set rates, limit orders are available on 1inch, allowing users to specify their desired exchange rate.
Deploying Smart Contracts with Reduced Costs
Deploying contracts with Chi involves a few straightforward steps:
- Approve Chi tokens for the Deployer.eth contract via Etherscan.
- Use Remix IDE to prepare deployment data without confirming the transaction.
- Submit this data through Deployer.eth's chiDeploy function, enabling Chi burning.
- Confirm the transaction via MetaMask.
This process can cut gas usage by nearly half, as demonstrated in examples where only 51.18% of gas was consumed, and six Chi tokens were burned. The deployed contract address can be found under internal transactions on Etherscan.
Frequently Asked Questions
What is the primary purpose of Chi Gastoken?
Chi Gastoken helps Ethereum users save on transaction costs by optimizing gas usage through storage refund mechanisms. It is especially beneficial for high-gas operations like smart contract deployments.
How does Chi compare to other gastokens?
Chi offers improvements over previous versions like GST2, with 1% better minting efficiency and 10% better burning efficiency. It also ensures ERC20 compatibility for wider integration.
Can I trade Chi tokens like other cryptocurrencies?
Yes, Chi tokens can be traded on decentralized exchanges such as 1inch. Their value often correlates with Ethereum gas prices, providing potential opportunities for traders.
Is minting Chi tokens risky?
Minting itself is not risky, but using low gas prices might cause wallet blocking. It is advisable to use a separate wallet specifically for minting activities.
Do I need technical skills to use Chi?
Basic familiarity with Ethereum transactions is helpful. However, tools like Deployer.eth simplify the process for developers and users alike.
Where can I find more resources about Chi?
The official repository and Etherscan provide contract details and implementation guides. Always refer to trusted sources for accurate information.
In summary, Chi Gastoken represents a significant step forward in managing Ethereum gas costs. By leveraging its capabilities, users and developers can achieve greater efficiency and cost-effectiveness in their blockchain operations.