Use Cases

In this section we explore various use cases for the Fuel v1 optimistic rollup. All the use cases covered below are examined in more detail in the Tools and Applications section.

Transfers

Fuel can be used for high-performance, low-latency global transfers with any ERC-20 token or Ether.

This is ideal for:

  • Global payment settlement
  • Application-specific tokens
  • Virtual gaming tokens and rewards
  • Any situations where users are transferring ERC-20 tokens

Please see our interactive 🕹️ Fuel Plays Pokémon demo for a live example of transfers in action.

Non-Custodial Exchange

Fuel's unique multi-user transactions and HTLC support are a perfect foundation for non-custodial exchanges.

We support two kinds of exchange:

  • Multi-user on-Fuel swaps
  • Cross-chain atomic swap with HTLCs

For further reading, please see Non-Custodial Exchanges.

Mass Token Dispersal

Fuel supports multi-input, multi-output transactions, making it perfect for pre-signed mass token dispersal scenarios where a single account must disperse tokens to a large number of unique recipients cost-efficiently.

This is possible on Fuel with a Merkleized dispersal pattern and our deterministic transaction identifiers, allowing dispersal transactions to be pre-signed and distributed off-chain. Tokens are only actually dispersed when claimed, greatly reducing overhead costs for unclaimed tokens.

For further reading on how we accomplish this with low overheads, please see Token Minting

Fast Withdrawals

Fuel allows for fast (~10 minute) withdrawals using our unique HTLC output. Liquidity providers on the intended exit chain (e.g. Ethereum or Bitcoin) can allow users on Fuel to withdraw with minimal effort and at low cost.

For further reading, please see Fast Withdrawals.

Subscriptions

Fuel's pre-signed transaction format is ideal for creating regular financial subscriptions, where a user can sign up to a subscription, pre-signing a set of transactions, and then allowing any service or system to collect payment on a regular basis non-interactively.

This is allows for cheap, care-free subscriptions for magazines, blogs, forums, and more.

For further reading, please see Subscriptions.

Escrow

Fuel has a transaction system which allows for hash-time-lock contracts (HTLC’s). One use-case for this, is allowing for third-party escrow release, where a trusted third-party provides a digest hash and two parties agree over a time-period and the provided digest.

If all is well, the funds will be released to the intended owner after the dispute period times out, however if there is a dispute, the third-party can release the pre-image and return the funds back to sender, or withhold the pre-image if the recipient depending on what outcome is reached on the dispute.

Burning

Fuel has a "return data" transaction output, which can be used to store arbitrary data in Fuel such as: burn metadata, social media messages, timestamped hashes, or specific application data.

The burning of a token by sending it to the zero address can be associated with a specific event using the return data output, all within in the same transaction.