Crypto Terms: Letter M

What is Metatransaction?

Metatransaction MEANING:
Metatransaction - responsible for fulfilling a transaction signed on behalf of the originating signer by another entity.
2 minutes

Let's find out Metatransaction meaning, definition in crypto, what is Metatransaction, and all other detailed facts.

A metatransaction has a responsibility to complete a transaction that is signed by another party on behalf of the initial signer. This puts the initial transaction onto the public blockchain. This prevents the user from being obligated to do it themselves.

Metatransaciton eliminates several difficulties as well as operational gas prices. On public blockchains, this is accomplished by allowing the network's relayer to manage them whereas the user just needs to sign the transaction with a single tap.

The main advantage of metatransactions is the superior user experience. The complexities and costs of trading on blockchains are given to developers or relayer infrastructure that is already taking part on the back-end. Hence, the users are free from these responsibilities.

Transactions are signed by the individual transacting, on a public ledger. This is collected and stored in the mempool. Every node maintains a mempool, which is a database of unconfirmed or awaiting transactions.

Miners also add the signed transaction in the following block.

The individual transacting pays the gas costs throughout this procedure, putting the whole obligation on the user executing the transaction. Furthermore, even when utilizing dApps or protocols that have their own token, users are obligated to pay the gas costs in the chain's native token.

DApps are allowed to bypass the responsibility of gas costs and token payments by metatransactions. This is done by having the signed transaction maintained in the standard blockchain transaction.

The outcome of this is that the responsibility of gas fees and transaction completion is given to a middleman.

A dApp developer could consider this as a great way to provide an experience that is free of gas fees, for example. In order to enhance user acquisition, he could also support the gas expenses for certain or all customers.

In a different scenario, they could also decide to let users only obtain their native token to pay for gas. Either way, they would employ metatransaction to make sure that they are the ones controlling the standard chain transaction and paying the gas fees required.

The user would essentially sign what is needed and pay to correspond to the developer's specifications, either in their own token or with no gas expenses.