How Are New Technologies (GasFree, Layer 2) Changing Fees in Blockchains?

The main problem with blockchain (including cryptocurrency blockchain) is choosing two qualities out of three possible: performance (i.e., transaction speed), security, and decentralization.

Each successful crypto blockchain chooses its niche. For example, the Tron ecosystem offers the fastest transactions (up to 2000 per second), while Ethereum offers maximum decentralization, etc.

However, for almost all blockchain networks, besides striving for the maximum trinity (performance + security + decentralization), high transaction fees remain a problem. Therefore, it is not surprising that cryptocurrency blockchain system teams are constantly searching for, developing, and implementing new technologies that reduce user costs.

This is especially true for interactions with smart contracts, which are the basis for stablecoins (tokens pegged to the rate of fiat currencies), as well as decentralized applications (DApps), including DeFi (finance), gaming, governance, social networks, etc.

DApp developers, entrepreneurs, and individuals who regularly transfer stablecoins—in short, everyone who interacts with smart contracts on a cryptocurrency blockchain in any capacity—wants to eliminate native crypto from gas payments or at least reduce these expenses.

Let's consider how modern technologies, such as GasFree and Layer 2 solutions, affect the reduction of fees in blockchain networks, and why renting Energy remains the most advantageous solution for paying gas fees in the Tron ecosystem. After all, this solution allows for savings of 40-80% on transactions compared to paying with TRX (Tron's native crypto).

First, let's look at the impact of GasFree and Layer 2 solutions on commission sizes, and then compare their effectiveness with the efficiency of renting Energy. Which technology or function really saves your money?

GasFree Technology

When Justin Sun announced that Tron was eliminating mandatory gas fees, he wasn't mystifying. Users who were ready for this, and even cryptocurrency experts (some, admittedly, with a degree of skepticism), welcomed this information as a hope for the complete abolition of transaction fees.

Everyone eagerly awaited the launch of the GasFree function. As it turned out, it meant a refusal to pay gas fees in the form acceptable in the Tron system. That is – with native TRX crypto and/or special Energy and Bandwidth resources. Instead, users of the GasFree function, which can only be used for USDT TRC-20 transfers, pay commissions in USDT. Moreover, this payment for transferring USDT to one address is currently higher than when recalculated into resources, and even more so – into TRX, since 600 Bandwidth is provided free of charge on the Tron network, and Energy can be staked. But if a large volume is needed, it is, of course, better to rent.

Those who know how the Tron blockchain works are not surprised by this turn of events. Launching any smart contract on the Tron blockchain (and USDT is a smart contract) requires network resources Energy and Bandwidth. To transfer any amount of USDT TRC-20 to an empty wallet (without these stablecoins), 131K units of Energy and 345 units of Bandwidth will be required. If the recipient's address already has USDT, half as much Energy will be needed.

Let's compare how many resources will be required for such a transfer using the GasFree function:

• for a transfer to an empty wallet – ~155,000 Energy;
• for a transfer to a wallet with USDT – ~221,000 Energy;
• for each transfer, regardless of the wallet's state – 699 Bandwidth.

And then these network costs for supporting your transaction via the GasFree function are recalculated into USDT.

Conclusion

1. Using GasFree allows users to make transactions without directly paying gas fees in Tron network resources and TRX.
2. The transaction fee can be paid by a third party, for example, a service or a decentralized application (dApp). But in this case, additional commissions from this third party are not excluded.
3. This improves the user experience by eliminating the need to own native tokens to pay for gas. Moreover, it is most suitable for those who regularly, but infrequently, transfer large volumes of USDT and do not want to bother with resources and TRX, or for beginners who have not yet understood the capabilities of the Tron blockchain. But for active users who transfer constantly and frequently, this is very ruinous.
4. The implementation of GasFree requires additional resources from services, which limits its application, for example, for paying for transactions with DApps.

Layer 2 Solutions

Most blockchain systems have a multi-level architecture. But to expand functionality, performance, scalability, and reduce transaction fees, Layer 2 technologies can be implemented. An example of such a technology that works on top of the Tron ecosystem (Layer 1) is the BitTorrent Chain (BTTC), whose goal is to scale the blockchain.

There are also such technologies for reducing commissions, some of which are also partially solved by improving scalability. The principle of such technologies is processing transactions off the main blockchain. After processing, transactions are combined into blocks and recorded in the blockchain archive.

This principle reduces the load on the system, and consequently, reduces the costs of computing and energy capacities for transaction processing, which, in turn, leads to a reduction in gas fees.

Examples of Layer 2 Solutions

1. Lightning Network for Bitcoin, allowing for fast and cheap transactions between participants without recording each transaction on the main blockchain.
2. Optimistic Rollups and ZK-Rollups for Ethereum, which combine many transactions and record them as one on the main blockchain, reducing fees and increasing transaction speed.

Conclusion

Although Layer 2 technologies can help reduce transaction fees, they require additional setup and can be complex for ordinary users.

And in practice, we see that transactions, particularly on the Ethereum network when interacting with smart contracts, are still significantly more expensive than on the Tron network, if one knows the specifics of the Tron blockchain platform and the possibilities offered by renting the Energy network resource.

Renting Energy on the Tron Network

The Tron ecosystem is constantly expanding the options for users to independently choose how to pay for gas. We have already mentioned the recently implemented GasFree function, which, despite switching to USDT for transfer payments, is actually based on the same system of calculation in Tron network resources – Energy and Bandwidth.

This once again confirms the flexibility of this blockchain, which strives to take into account the interests of users with different goals, means, and experience.

Active users who frequently and regularly interact with smart contracts have long known and used all the possibilities that Tron provides for replenishing Energy reserves, a resource often called fuel for smart contracts.

Of course, the most numerous transactions are those with the USDT TRC-20 stablecoin, for one transfer of which you need to have ~65K or ~131K units of Energy on your balance, depending on the recipient's balance status. Business platforms can make dozens of transfers to different addresses. Of course, they require not just a significant reserve of Energy, but also constant replenishment.

The options provided by the Tron network for replenishing Energy reserves are designed for different users.

1. Users can stake (freeze) their TRX to receive Energy used to pay transaction fees. But this requires withdrawing funds from circulation for 2 weeks. Moreover, to get Energy for a couple of transfers, you need to freeze ~24,000 TRX. That is, this method is suitable for those who rarely and irregularly interact with smart contracts. It is not suitable for developers and business platforms. In addition, it is difficult to calculate the exact need for Energy, as well as the amount you will receive from staking. The first depends on the network load during the transaction, and the second depends on the total volume of TRX currently staked by all Tron users.
2. Paying for transactions in TRX, buying or exchanging for Tron network resources are only suitable for a one-time operation; constantly using such methods is extremely wasteful. Although the burning of Energy in huge quantities in transactions, especially those related to USDT transfers, can still be observed daily. This suggests that Tron users know little or nothing about the most profitable way to get Energy cheaply and in the required volumes almost around the clock.
3. The Tron ecosystem supports Energy rental services operating on the blockchain. This is the easiest and most accessible way for everyone to significantly reduce commissions, especially for users who frequently make transactions.

NETTS Energy rental service not only promises but demonstrates every day how you can save about 80% on transactions.

The NETTS Workspace system is an opportunity to connect via API and charge your balance with Energy according to a schedule convenient for you. You set a threshold for the Energy volume in your wallet, and when the resource volume drops to the specified level, the balance is automatically replenished – this is how the Smart mode works by trigger.

For active users, Host mode options are also suitable – constant replenishment of the Energy balance and a cyclical principle of charging the wallet with the resource.

If you do not need such volumes of Energy, you can still use NETTS services – even for a one-time replenishment of your wallet, you will still save up to 80% on transactions. And sometimes – even more.

As mentioned above, Tron has a dynamic energy supply model. The screenshots above clearly demonstrate this. The first is an invoice for a daytime charge of 131K units of Energy, the second – for a nighttime charge.

The deposit is 15 TRX when entering via Netts Energy Charge Bot and only 1 TRX – for Workspace. API connection is possible only when entering through the web interface.

Another important advantage of NETTS Workspace with API connection: during periods of low Tron network load (50% of charges), only the cost of the Energy you actually consumed will be debited from your deposit – the debit for unused Energy will be returned.

Comparison of Methods for Reducing Commissions

Let's summarize all of the above: what are the pros and cons of each approach to influencing commissions, what they lead to, and what benefits users receive.

GasFree

Pros: Improves user experience by eliminating the need for the user to pay for gas in native crypto and Tron network resources.

Cons: Requires additional resources from services, limiting scalability, and increases the cost of transactions in USDT.

Layer 2

Pros: Reduces fees and increases transaction speed.

Cons: Complexity of setup and use for ordinary users; commissions ultimately still lose out when compared to commissions on the Tron network.

Renting Energy in Tron

Pros: Ease of use, significant reduction in commissions – 30-80% depending on the choice of Energy rental service, does not require large investments unlike staking – usually a deposit, which is more convenient than prepayment.

You don't even need to understand the mechanism of renting Energy, available only on the Tron network, or make tedious calculations – NETTS will do everything for you. You won't have to worry if there will be enough Energy for the transaction this time. With NETTS, you'll have as much as you need.

Conclusion

Although GasFree and Layer 2 technologies offer effective ways to reduce commissions, renting Energy on the Tron network remains the most profitable and accessible solution for users, especially with frequent transactions.

NETTS Energy rental service saves your TRX and saves you about 80% of your transaction costs. It's simple – deposit 1 TRX, log in, and use it right now - https://netts.io