3 weeks ago

    No more manual payments on Web3: VISA’s solution for automated transactions on Ethereum

    No more manual payments on Web3: VISA’s solution for automated transactions on Ethereum
    Table of contents

      VISA is taking steps to make it easier for people to make automatic payments using self-custodial wallets, which are digital wallets that a user has full control over and can access using their own private keys. Currently, it can be difficult to set up automated payments on blockchain networks like Ethereum, but VISA is working on a solution that involves the use of smart contracts. The concept was introduced by Ethereum co-founder Vitalik Buterin in 2015.

      Using smart contracts and account abstraction to streamline recurring payments

      Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. They can be used to facilitate, verify, and enforce the negotiation or performance of a contract. In this case, VISA is proposing the use of smart contracts to enable automated programmable payments on self-custodial wallets.

      Visa’s Head of Central Bank Digital Currencies and Protocols, Catherine Gu, emphasized the company’s focus on growing its core competencies in Web3 infrastructure layers and blockchain protocols, including security, scalability, interoperability, and privacy. Gu stated that the goal is to create real-world use cases for payments with a great user experience. By exploring AA and other blockchain innovations, Visa is positioning itself as an active player in the cryptocurrency market and could potentially help drive mainstream adoption.

      How smart contracts and account abstraction will make recurring payments a breeze on Ethereum

      To understand the problem VISA is trying to solve, consider the following scenario: It’s February 25th and Alex is going on vacation to the Alps. Alex has a number of bills that need to be paid by the 5th of every month, but she won’t have enough money to pay them until she gets her paycheck on March 1st. In a traditional banking system, Alex could simply set up recurring payments on her VISA card to take care of these bills automatically. But on a blockchain network like Ethereum, this process is more complicated.

      Visa’s focus on Web3 infrastructure layers and blockchain protocols demonstrates the company’s commitment to growing its core competencies in the cryptocurrency space. The move towards supporting auto payments on Ethereum wallets shows that Visa is positioning itself as an active player in the cryptocurrency market and could potentially help drive mainstream adoption.

      How smart contracts and proxy contracts can help simplify blockchain payment

      On Ethereum, there are two types of accounts: Externally Owned Accounts (EOAs) and Contract Accounts (CAs). EOAs, also known as user accounts, are controlled by private keys and can be used to send transactions. CAs, or smart contracts, have associated code that can be executed when certain conditions are met. In order to enable automated payments on self-custodial wallets, VISA is proposing the use of a concept called Account Abstraction, which would allow smart contracts to be written in such a way that they can pull funds automatically from a user’s account at regular intervals.

      VISA’s solution involves the use of a proxy contract, which acts as an intermediary between the self-custodial wallet and the smart contract responsible for handling the automated payments. The proxy contract contains the logic for executing the payment and is responsible for forwarding the payment request to the smart contract. This allows the user to set up the payment once and have it automatically executed at the specified intervals without having to manually initiate each payment.

      While VISA’s solution for automated payments on self-custodial wallets is still in the early stages of development, it has the potential to make it much easier for people to manage their recurring payments on blockchain networks. This is especially important as blockchain adoption continues to grow and more people are looking for ways to use these networks for real-world applications. By streamlining the process for setting up automatic payments, VISA is helping to make it easier for people to take advantage of the convenience and security of self-custodial wallets.

      0 0 votes
      Rating
      Subscribe
      Notify of
      guest
      0 Comments
      Inline Feedbacks
      View all comments
      CryptoNFT
      What is the metaverse?
      Sometimes when things come along that are brand new and generating quite a buzz, like the metaverse, it’s often as useful to know what they aren’t...
      7 months ago
      BitcoinCBDCsCryptoTax
      The Coincub’s crypto continent ranking for 2022
      Which continents lead the way in crypto adoptions, and which are falling behind? Do continents display individual traits and characteristics? And is ...
      7 months ago
      Cryptocurrencies
      An abridged history of exchange hacks
      In this book, we’ve cautioned against holding large amounts of money in online exchanges. The reasoning behind that has a long and storied history o...
      7 months ago

    Choose the best for you

    Want to know the best countries in the world for doing business, where crypto tax implications are more favourable, which countries have the most progressive crypto legislation? The Coincub rankings are already an indispensable part of the crypto and blockchain world. Find out how Coincub can provide you orgnaisation with information and analysis tailored to your specific needs and/or to meet your planned activities.

    Report
    $51pcs / Last report (#1)
    Your Coincub report: “Best countries for doing crypto business” can be downloaded after the payment is successful.
    Buy report now
    Subscription
    $255pcs + 1 free / Year’s subscription
    Why not sign up for a year’s subscription and get one for free? Six exclusive crypto report for only $25.
    Subscribe now
    Institution
    Contact us
    Professional data, metrics and analysis, custom features, and bespoke market reports for even the most demanding organizations.
    Contact us now

    Crypto insights delivered straight to your inbox

    Subscribe to our newsletter, you are in very good company

    Loading
    This is not financial advice. Coincub is an independent publisher and comparison service. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. This space changes rapidly and evolving, so please make sure to do your own research. Although we do our best to provide you the best information, we cannot guarantee the accuracy or applicability of any information on this site or in regard to your individual circumstances.
    0
    Would love your thoughts, please comment.x
    ()
    x