Ethereum is the major blockchain when it comes to tokens, tokenization, and also DeFi projects. However, the increase in popularity comes with its costs. The more users and projects are relying on Ethereum, the scarcer the resources. Ethereum is still very limited to transactions per second. No more than about 12 transactions per second. These 12 transactions are distributed between all entities globally.

1. Omnibus Wallet Architecture

An omnibus wallet architecture means that instead of using one wallet per user, to switch to a centralized form. Only one or a couple of wallets are being used for all users. With that, transactions are no longer done on-chain but off-chain. If an asset is to be allocated to another user, this record will not be on the blockchain. Therefore, zero transaction fees.

If a user wants to know his balance in the omnibus wallet, we only have to take a look at his non-disclosed private blockchain wallet. So if a transaction should be done it will only be executed on the private blockchain.

2. Migration to another blockchain

Depending on the business case, migration to another blockchain could be reasonable. If the project hasn’t officially started yet even better.

No matter if migrated or directly started on another blockchain, leaving Ethereum comes with its pros and cons. The pros are often higher scalability and with that way lower transaction fees. We are speaking here up to 99% lower.

Similar alternatives to Ethereum are EOS, Binance Chain and Tezos. Those three blockchains support smart contracts, have often a similar technical architecture and are also considered to be reliable. At Binance and Tezos it’s even possible to re-use the same wallets as on Ethereum.

3. Efficient Smart Contracts

Another, less radical approach compared to the ones before, is to optimize the smart contract. The higher the complexity of the smart contract, the higher the fees. That is why a smart contract should be as simple and small as possible. Remove all unneeded functions and check if the code can be simplified. Maybe even validate whether some functions could be done outside of the smart contract such as the management of a whitelist.

With that we have seen decreased network fees by 33%.

4. Optimized Gas Estimation

For every transaction, there is the possibility to set the amount of fee. Depending on the urgency of the transaction, the included fee can be reduced. The less fee is included, the longer it takes until the transaction is executed.

As the fee level is very volatile it is recommended to recheck the current market price for transactions. By not using outdated market prices it is possible to save about 25% of the fees per transaction.