14/21, or 66%, of the top gas-consuming smart contracts on Base, a layer-2 platform for building and deploying smart contracts, are unverified, according to Token Terminal data on October 24. These contracts are among the most actively used, based on gas fee trends over the last month (Token Terminal, 2021).
Friend.tech emerges as the leading gas consumer on Base. Base is a layer-2 scaling solution that competes with OP Mainnet and Arbitrum. It utilizes the Optimistic Rollup technique where transactions are batched off-chain before being confirmed on the mainnet, similar to its competitors (Token Terminal, 2021).
Friend.tech, known to be deployed by an anonymous developer, is a decentralized social media protocol that enables users to trade keys to each other’s X accounts. This grants access to exclusive in-app chatrooms and content from specific users (Token Terminal, 2021).
Deploying on Base offers Friend.tech users lower trading fees compared to launching on the mainnet. Additionally, the layer-2 solution allows for higher throughput, enabling scalability (Token Terminal, 2021).
Over the last month, Friend.tech has generated over $253,000 in gas fees. Base’s execution fee, also known as the layer-2 fee, is set by the network and remains flat. This fee discourages network spamming and rewards nodes that verify all transactions on the platform. On the other hand, there is an additional fee for confirming the same transaction batch on the mainnet, which is generally higher than the execution fee (Token Terminal, 2021).
While Friend.tech’s gas fees have decreased by over 47% in the last month, indicating a potential decline in trading activity, unverified smart contracts have experienced significant fee growth. One unverified contract witnessed a 104% increase in trading fees, reaching $42,000, while another contract surged by 1,690%, surpassing $11,000 in the same period (Token Terminal, 2021).
It is important to note that unverified smart contracts have not been confirmed by a third party. Consequently, there is no guarantee that the developer built and deployed the code on Base, and there is a risk of potential malicious code that could compromise user addresses (Token Terminal, 2021).
Image source: Canva (feature image), TradingView (chart)
❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀