TrustToken has developed a cost efficient method to manage crypto addresses associated with TrueUSD and ERC20 tokens. The developer of TrueUSD, upgraded its smart contract for several reasons. Essentially, it was developed to reduce the amount of Gas used as transaction fees by managing addresses within a single wallet. Additionally, the feature would help OTC desks, traders and exchanges to use TrueUSD.
What is AutoSweep
AutoSweep is a register of deposit addresses that makes it easy to accept and manage TrueUSD deposits. It provides each client with a unique TUSD deposit address that gets registered into the primary wallet of the exchange with zero gas fees. Exchanges can save gas fees and accounting overheads, required for TUSD deposits.
The feature is the one of its kind in an Ethereum based token. A software engineer at TrustToken, Terry Li stated,
“There’s a few benefits to this, it’s much cheaper for exchanges to [use], they don’t need to run a lot of transactions to aggregate all these users’ tokens into their hot wallet, so that’s one thing …. It’s also less key management, [companies] wouldn’t need to manage all the private keys.”
This would assist merchants and users more than exchanges. TrustToken Head of Engineering, Rafael Cosman stated that the amounts of ether required for transactions on the ethereum blockchain will reduce. He added,
“AutoSweep is the first implementation of an ‘alias’ feature for an ethereum-based token and allows exchanges to significantly improve both the accounting structure and save on time and gas cost by automatically sweeping user accounts to the central wallet.”
The token code supporting the feature is open-source, therefore, it can be applied to any Ethereum token.
Managing The Wallet
Using the feature would enable savings of thousands of dollars, by integrating the code into exchange back-ends. Thereby, creating about 1,048,576 Ethereum wallet addresses. As a result of AutoSweep, the wallet will automatically register on the smart contract.
A single Ethereum block incurred a transaction fee of 0.04944099 ETH. This may not be a very large fee, however, any future savings in the crypto market is viewed positively. Likewise, the cost involved in the execution of a smart contract can be higher based on Ethereum related factors. Transaction costs are believed to prohibit adoption if they are not controlled.
The new feature is expected to revolutionize the management of user addresses for exchanges. Meanwhile, TrustToken aims to continue to develop advanced tools to facilitate more convenience for traders and exchanges of TrueUSD.