What is Gelato (GEL)?

What is ​​Gelato (GEL)?

Gelato is a decentralized backend for Web3 that offers a range of services for developers. With Gelato, developers can create smart contracts that are automated, gasless, and off-chain compatible with major EVM-compatible blockchains like Ethereum, Polygon, Fantom, Arbitrum, BNB Chain, Optimism, and more. Gelato's four main services include Web3 Functions, Automate, Relay, and Gasless Wallet. These services enable developers to connect their smart contracts to off-chain data and computation, execute transactions automatically, provide users with reliable and scalable gasless transactions, and deliver a world-class UX. Over 200+ Web3 projects have relied on Gelato for years to power millions of transactions across DeFi, NFT, and Gaming.

How does Gelato (GEL) Work?

Their aim is to provide developers with a range of modular Web3 devops services that enable them to build decentralized and resilient protocols. To achieve this goal, Gelato Network functions as a marketplace that connects two parties: developers who want to automate transactions and infrastructure operators who operate executor bots. These bots look for tasks to complete and receive a small fee in return.

Some of the key benefits of using Gelato Network include no need to host servers on a cloud provider, multiple fallbacks for RPC aggregation, a reliable transaction relay service that ensures fast transaction mining, automatic reorg detection, multi-chain support for popular EVM-compatible networks, no single point of failure, and a built-in consensus and coordination layer that prevents racing conditions.

In addition, Gelato Network offers flexible payment options, such as paying with a prepaid balance or having transactions pay themselves. It is also cost-effective, as it is cheaper than building, running, and maintaining custom servers. Furthermore, there are economies of scale, making it more cost-effective to use for dApps than running their own centralized keeper system.

The Gelato Network is a sustainable and revenue-generating protocol. It becomes more cost-effective the more transactions are automated via the infrastructure services of Executors, as they need to be paid less per transaction to cover their fixed infrastructure costs. Executors justify the costs of running their infrastructure by the increase in transaction quantity rather than the value captured by individual transactions. This makes Gelato more affordable for dApps than running their own centralized keeper system.

What is the GEL Token?

Since its inception, Gelato was intended to be a project driven by the community and open-source. The protocol is created to be owned by those who use it the most, with decisions being made collaboratively by all stakeholders in the network. This approach is designed to ensure that power is returned to the people.