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The popularity of DeFi and liquid mining has also triggered a surge in Ethereum gas fees, and Ethereum miners have received soft gas fees. The downside is that some Ethereum projects are unsustainable due to high gas fees.
Recently, UniLogin, the user entry solution for Ethereum, announced that it would close the entire project, return the remaining funds to investors, and find a new direction because of the continued high gas fees of Ethereum, which caused the cost of subsidizing users to be too high. UniLogin stated that the new direction they are considering is a DeFi wallet focused on Layer 2 or a login solution in the Ethereum sidechain xDAI.
UniLogin founder Alex Van de Sande said that the current Ethereum gas fee market, the rise of DeFi, and new browser standards have greatly changed the rules of the game, so that the direction of UniLogin is not seen.
The creation of UniLogin began two years ago. Its vision is to establish a universal login standard for Ethereum, which is a method of using smart accounts and abstractly registering all users directly from the browser to Ethereum. The interview research conducted by UniLogin at that time found that most DApp developers stated that as long as they can profit from user behavior, they would be willing to pay transaction fees for users.
Therefore, UniLogin introduces two fee models: Meta transaction and fee-free transaction. If the user pays the gas fee by himself, he will use the ERC20 tokens he already owns to make the payment using a meta transaction. If the DApp pays for the user, the user only needs to create a wallet and send the transaction.
Alex Van de Sande said that the UniLogin product is based on three assumptions, and it is now proven that all three assumptions are wrong.
Wrong assumption 1: The browser is regarded as a low-value key storage place
One of the goals of UniLogin is to "create any account without downloading or installing any other files", so localstorage is used to store the initial key.
But some browser vendors (most notably Apple) are implementing new memory erasing strategies, which include erasing all memory if the user does not visit a site within 7 days. As a result, UniLogin had to change the roadmap, including logging in via email. This means that UniLogin will host user wallets. UniLogin originally wanted to provide users with the only identifying information is the ENS name.
Wrong assumption 2: Scalability is not a problem
In our demonstration, this is a clear assumption: availability is more important than scalability, and given that there are so many L2 solutions (such as xDai) deployed on the market, once scalability becomes an issue, we will do our best Go ahead.
UniLogin is particularly sensitive to Gas prices, because when a new user is acquired, UniLogin deploys a new multisig wallet on their behalf, registers the ENS name, and sometimes even uses a repeater to add Dai transactions. After that, each new login on a different device requires a new on-chain transaction (to add a new key), and due to the repeater, the price of each transaction will be higher. Sometimes, the cost of new user registration exceeds $130!
Wrong assumption 3:Ethereum for everyone
At present, Ethereum is undergoing a process of becoming a large account. In this process, the DeFi whale is pricing the use of the Ethereum network. Each transaction costs several dollars, so games, NFTs, DAOs and many other exciting applications are basically inaccessible to users.
In this process, many new things will be transferred to L2 or their own chain, and many applications use different scalability solutions. As a result, it is now difficult to build a system as a universal account.
