The First: Detailed Explanation of Account Abstraction Multi-Chain Relay Protocol Biconomy

In 2016, V God first proposed the concept of account abstraction, hoping to enhance the functionality and flexibility of wallet accounts through smart contracts. The full name of account abstraction is Account Abstraction, AA, which aims to enhance the flexibility and functionality of smart contract accounts.
In traditional concepts, accounts in blockchain networks are divided into Externally Owned Account (EOA) and Contract Account. EOA is directly controlled by users and transactions are signed through private keys, while Contract Account is controlled by code and transactions are processed through smart contract logic. The goal of Account Abstraction is to blur the boundary between the two, give Contract Account more functionality, and make EOA flexible like a smart contract.
In 2022, the first Layer 2-based account abstraction standard EIP-4337 was proposed, attempting to achieve account abstraction without changing the protocol of Ethereum Layer1. This goal was successfully implemented and deployed on the Ethereum mainnet in 2023. Since then, more and more DAPP developers have begun to adopt account abstraction technology, bringing users a more flexible and convenient operation experience.
On December 5, 2023, The First announced that it would launch the account abstraction infrastructure project Biconomy , a multi-chain, Plug and Play relay protocol established in 2019. It can greatly reduce users' concerns about network switching during the transaction process and promote a seamless and smooth User Experience. Therefore, it has been adopted by a large number of developers. Now, Biconomy has launched the ecological token $BICO and launched The First spot area at 16:00 (UTC + 8) on December 5. What surprises can it bring us and what value benefits can users get from this project?
What is Biconomy?
Today, Web3 applications face significant barriers in terms of user usage, namely extremely high user entry and poor transaction experience . Almost every interaction with dApps is a complex transaction for users. Compared with the intuitive web2 products that people are accustomed to, current dApps are still very inconvenient in terms of operational practicality.
Biconomy hopes to take responsibility for improving the user experience of blockchain and decentralized applications (dApps). By solving the usability issues of blockchain, it provides users with seamless cross-chain transaction solutions and simplifies the interface for developers to build and optimize the transaction experience of applications. Biconomy's signature feature is its integration of multi-chain support and smart contracts, which allows users to transact across multiple blockchain platforms, reducing complexity and improving transaction efficiency.
As a leading developer tool provider, Biconomy focuses on simplifying the Web3 experience and providing users with more convenient and efficient on-chain interactions. Through cross-chain interaction support, gas-free transaction mechanism, and solutions that allow gas fees to be paid with other ERC-20 tokens, Biconomy is lowering the threshold for DApp usage and providing end users with a seamless on-chain experience.
The core goal of Biconomy is to make Web 3.0 more user-friendly, interoperable, and composable. Users can expect a simple and intuitive multi-chain experience, whether connecting wallets on any dApp or transferring assets between different chains or layer 2 networks (L2/rollup), they can enjoy efficient operations without gas fees . This technology greatly reduces the threshold for ordinary customer engagement in DeFi or other on-chain activities.
Biconomy's cross-chain transaction infrastructure, Hyphen mainnet, provides developers with an easy-to-use API. Hyphen enables fast and low-cost cross-chain transfers by maintaining token liquidity on different chains. When users deposit tokens on one chain, Hyphen immediately completes the transfer on the other chain and automatically balances when one-way liquidity is imbalanced. This mechanism not only improves cross-chain transaction efficiency, but also provides additional profit opportunities for liquidity providers.
Biconomy supports networks including Ethereum, Matic (Polygon), xDAI, Binance Smart Chain (BSC), Moonriver, Edgeware and other mainstream chains, as well as providing tool support for well-known DeFi projects such as Curve Finance, Idle Finance, Perpetual Protocol, Decentral Games . In the future, Biconomy will continue to expand more public chains and cross-chain applications, further reducing user transaction costs and usage barriers.
Biconomy is bringing simpler and lower-cost experiences to the Web3 world through its innovative infrastructure and developer tools, opening a wider door to blockchain technology for users and developers.
II. Biconomy operation mode
Biconomy provides an infrastructure designed to simplify User Experience, enhance interoperability, and lower the threshold for Web3 use. Its architecture consists of three main products: Meta-Transactions , Hyphen Transactions , and Modularization Smart Accounts . The core mission is to help developers simplify the development process of decentralized applications (dApps) by providing ready-to-use APIs and SDKs, so that users can enjoy a smoother and unobstructed on-chain experience.
Meta Transactions : Achieving a Gas-Free User Experience
Biconomy's meta-transaction mechanism allows dApp developers to pay users' Gas fees on their behalf, allowing users to complete on-chain transactions without holding native tokens (such as ETH). Users only need to focus on the functionality of the dApp without worrying about paying Gas fees. This feature significantly increases the adoption rate of dApps.
User Experience : Simple front-end operation, users do not need to understand or deal with complex gas mechanisms.
Developer Advantage : dApp developers enhance User Experience, retention and engagement by paying Gas fees.
Hyphen: Enhancing cross-chain interoperability
Biconomy's Hyphen cross-chain infrastructure provides fast and secure cross-chain asset transfers, allowing users to operate smoothly between multiple blockchains without switching networks.
ERC-20 tokens pay gas fees : Users can pay gas with any ERC-20 token, instead of the native tokens of a specific chain (such as ETH or BNB), greatly simplifying cross-chain interaction.
Automatic Liquidity Balancing : Hyphen maintains token liquidity on different chains and automatically balances excess liquidity for one-way output, ensuring smooth execution of cross-chain transactions.
The role and value of BICO tokens
Biconomy's native token BICO plays an important role in the entire ecosystem:
Network Incentives : BICO incentivizes ecosystem participants such as node operators and liquidity providers to support the network.
Governance function : BICO holders can participate in network governance, proposing or voting on key issues regarding protocol upgrades or other network developments.
Staking and Returns : Users can stake BICO to receive network benefits while supporting the security and decentralization of the Biconomy network.
Biconomy technology core
Currently, the development direction of Biconomy mainly focuses on the following three areas:
Cross-chain application : Support fast and seamless asset transfer between different public chains.
Biconomy integrates with multiple Layer 2 solutions (such as Polygon and Optimism) to improve transaction speed and reduce transaction costs. At the same time, these integrations also promote the application of account abstraction on different blockchain platforms.
ERC-20 Token Gas Payment : Allows users to pay gas fees with any ERC-20 token, enhancing User Experience.
Biconomy's Relay Protocol not only provides users with convenient on-chain operations, but also brings new possibilities for DApp developers and third parties.
Enhanced User Retention Rate : Gas-free experiences reduce User Churn rates, especially for novice users.
Flexible business models : Developers can attract more users by subsidizing gas fees or partnering with third parties to inject more vitality into the ecosystem.
Through Biconomy's innovative technology, the threshold for using Web3 has been greatly lowered, creating a broader user base for on-chain operations. In the future, as more projects integrate Relay Protocol, this gas-free transaction experience will become the new standard in the Web3 world.
Zero Gas Transfer Application : Provide users with a truly zero-fee on-chain transaction experience.
For many new users, gas fees are the first threshold to participate in on-chain operations. In traditional on-chain interactions, users must hold ETH or native tokens on the chain to pay transaction fees, which undoubtedly increases the complexity of using applications such as DeFi and NFT, especially for Web3 novices.
Biconomy achieves true gas-free transactions through its Relay Protocol , providing users with a more user-friendly and seamless on-chain experience. Users do not need to have ETH as a gas fee when using DApps. Instead, Biconomy greatly simplifies the payment process with the following mechanisms.
By providing gas-free transactions and cross-chain interoperability, Biconomy solves user pain points in traditional blockchains, making dApp development and use more efficient and convenient. At the same time, the introduction of BICO tokens provides sustainable economic incentives for network participants, ensuring the long-term growth and prosperity of the ecosystem.
Biconomy team and financing information
Biconomy Network was created by an experienced team from the fields of encryption and technology. The founders of the team include Ahmed Al-Balaghi and Nitin Gaur, who are committed to providing easy-to-use and powerful infrastructure tools for decentralized application developers. Biconomy attracted support from multiple investors and partners in its early days, laying the foundation for the platform's rapid development.
Biconomy raised $1.50 million in early 2021, followed by $9 million in July 2021 and a $11.50 million public offering on Coinlist in October.
Biconomy completed another round of strategic financing in March 2024. Although the financing amount was not disclosed publicly, its investor lineup is strong, including top institutions such as Jump Capital, Borderless Capital, Consensys Ventures, Taisu Ventures, Manifold Trading, Side Door Ventures, and Blockchain Founders Fund. This financing provides Biconomy with the motivation to further expand its cross-chain trading infrastructure and gas-free trading solutions, and also indicates that its key position in the Web3 ecosystem is increasingly consolidated.
Bico Token Economics
BICO is the native utility token of the Biconomy ecosystem. Its total supply is 1 billion tokens, of which 667 million (66.7%) are in circulation. As the native token of the Biconomy ecosystem, $BICO has multiple functions such as payment, incentive, governance, and staking. It provides continuous development momentum for the network and creates multi-dimensional participation and revenue opportunities for users. Its main uses include the following four aspects:
Pay network fees
Users need to pay a certain amount of BICO as a fee when using services such as cross-chain transfer and gas-free transactions provided by Biconomy. By using BICO payment, users can achieve fast and efficient interaction between multiple chains.
Incentive Mechanism
Used to incentivize various participants who support the network, including ensuring the stability of the operating node network and providing liquidity for cross-chain merging functions such as Hyphen, to ensure that users can smoothly complete assets.
Governance participation
BICO holders can submit improvement proposals to promote technical upgrades or operational adjustments to the protocol. They participate in key decisions through voting mechanisms, such as protocol parameter adjustments or new feature launches.
Pledge protection network
Node operators need to pledge a certain amount of BICO to participate in network operations, and the pledging behavior provides security for the network. Ordinary users can also obtain rewards by pledging BICO, which can protect the network and enjoy additional benefits.
The allocation method of $BICO is as follows:
Community: 38.12% (381,200,000 BICO)
Foundation: 10% (100,000,000 BICO)
Teams and consultants: 22% (220,000,000 BICO)
Private round financing: 12% (120,000,000 BICO)
Seed round financing: 6.38% (63.8 million BICO)
Pre-seed financing: 6% (60,000,000 BICO)
Offer For Sale: 5% (50,000,000 BICO)
Strategic investor: 0.5% (5,000,000 BICO)
Analysis of the Future Value of $BICO
As a key platform for decentralized finance (DeFi) and cross-chain transaction infrastructure, Biconomy has demonstrated its strong technological innovation capabilities and market prospects. By providing gas-free transactions, supporting multi-chain interoperability, and simplifying User Experience, it has become an important infrastructure in the Web3 ecosystem, providing dApp developers and users with lower transaction costs and more efficient operating experiences.
Although the cryptocurrency market is volatile, Biconomy is expected to continue to grow in the future with its unique technological advantages and Market Positioning. With the increasing demand for decentralized applications and the increasing importance of cross-chain interoperability, $BICO is expected to become a leading asset in this field. Investors can benefit from market demand growth in the short term, while holding it for the long term may also yield considerable returns.
On December 5th at 16:00 (UTC + 8), the ecological token $BICO launched by Biconomy will officially land, providing investors with an opportunity to enter this high-potential project. With The First platform, users can easily conduct $BICO transactions and preemptively layout Web3 core infrastructure tokens. Go to The First ( byetf.net ) to start trading now and seize the market opportunity of $BICO in the early stage of listing. Whether it is short-term investment or long-term holding, $BICO is a potential project worth paying attention to.