What Is Biconomy (BICO)?

Biconomy (BICO) is a blockchain platform that offers a seamless user interface for developers to enable simplified Dapp solutions (for reaping Web 3.0 benefits) for end users. The platform seeks to build a simple transaction infrastructure for users who are not crypto-savvy. Focused on developers, Biconomy seeks to make Web 3.0—the blockchain-enabled, decentralized ecosystem—as simple as Web 2.0—the present version of the internet. This solution helps the Dapps be developer-friendly, resulting in onboarding more users. Thereby, the makers and players of the decentralized Web 3.0 ecosystem reap benefits seamlessly.

According to the Biconomy litepaper, the platform anticipates that a mainstream user would find it difficult to understand the technical aspects of a typical blockchain interface. These can be about the price calculation related to gas fees and crypto wallets or moving funds between different blockchains. As a solution, Biconomy seeks to build a Dapp that handles the transaction management under the hood.

One of the Biconomy platform’s signature offerings is the meta-transaction that lets a relayer, i.e., a third-party, perform a transaction on behalf of the user. The user signs a message containing information about the transaction. Subsequently, the relayer executes the transaction details, including gas or transaction fees, on the preferred blockchain. For example, it is similar to how users do not pay for the AWS (Amazon Web Service) fee in a streaming platform like Netflix for each video separately. The Biconomy platform aims to solve Dapps by not charging gas fees for every interaction.

Further, to move funds between different blockchains, the Biconomy protocol endeavors to enable meta-transaction on a multichain network. The network hosts over ten blockchain networks such as Ethereum, xDAI, Binance Smart Chain (a parallel chain to run smart contracts on Binance exchange), and more. The network contains an inherently multichain capability that offers users a seamless and decentralized exchange of value and messages. As a result of this noncustodial, gas-efficient relayer network, Biconomy seeks to simplify the transactions for both developers and end users.

Accordingly, the platform seeks to offer three products, namely Mexa, Forward, and Hyphen, due to its transaction management proposal. Biconomy’s Mexa enables gasless transactions to the Dapps in the protocol, whereas the product Forward aims to allow users to pay transaction fees using their tokens. Finally, the product Hyphen seeks to offer a quick and cheaper option to transfer tokens across multiple blockchains (cross-chain transfer).

The native token of the Biconomy platform is BICO, an Ethereum-based token. BICO serves as a work and governance token. Further, the token serves a key role in decentralizing the network by acting as network fees for the Biconomy platform. As the network blockchain works as a verification and settlement layer for supporting the activities of multiple networks, node operators pay a network fee. These executors and validators in the network add information to the blockchain. Consequently, they earn BICO tokens for the work done proportionally. Additionally, the BICO token incentivizes all stakeholders who secure, maintain, and participate in network governance.

History of Biconomy

Biconomy, a Dubai-based company, was founded in 2019. The diverse team of Biconomy consists of coders, crypto enthusiasts, and designers. Biconomy was cofounded by Ahmed Al-Balaghi, the CEO, Sachin Tomar, the CTO, and Aniket Jindal, the COO. Moreover, ventures like Binance, Coinbase Ventures, and others back the Biconomy platform.

How Are BICO Tokens Staked?

The validators and executors are the node operators who run and maintain Biconomy’s decentralized network. By staking BICO tokens, a node operator participates in the network to contribute. In exchange for any credible contribution made by node operators, they receive BICO tokens. On the contrary, the slashing mechanism reduces the staked portion of BICO tokens for any malpractice by the node operators. Thus, the Biconomy network operates based on the proof-of-stake (PoS) consensus mechanism. 

Apart from the node operators, the delegators (BICO token holders) also secure the network by staking. Delegators earn BICO tokens in proportion to the BICO staked in the network. 

Furthermore, liquidity providers are also stakeholders in the Biconomy network who provide liquidity to various cryptocurrency assets to the pools. These liquidity providers earn fees when a user utilizes these pools. In addition to fees, liquidity providers also earn BICO tokens in proportion to their contribution to the liquidity pool. 

Thus, the platform seeks to establish these incentive mechanisms to ensure trustless and decentralized functioning.

How Many BICO Tokens Are There in the Market?

According to the Biconomy website, there is a total supply of 1,000,000,000 (1 billion) BICO tokens.

How to Buy BICO Tokens

The BICO token can be purchased on Coinbase.com or Coinbase app.