Visa, the credit giant, has come up with a proposal that would allow Ethereum users to make transactions without the involvement of any third party. They can make payments directly from their own self-custodial wallets.
Account Abstraction, an Ethereum feature, which is still under review will be likely used to do these transactions using Visa, for automatic payments. This feature will allow customers to pay recurring bills, which is not allowed at the basic level by Ethereum.
How will the Ethereum integration work?
Visa highlighted that it was able to merge the features of user accounts and smart contracts into a single model of Ethereum account by employing account abstraction. The resulting account was referred to as a “delegable account” by the corporation.
Using this method, a retailer can set up a smart contract for automatic payments. A merchant can initiate a payment by using the charge function of the automated payments contract when a user with a delegable account gives consent. The auto-payment contract is also added to a whitelist for upcoming payments by the user’s delegable account.
The firm came up with this feature as a result of its Crypto Hackathon Challenge, 2022. In Ethereum’s features, the user needs to request and do the transaction manually. The feature is available in bank accounts and custodial wallets, however, self-custodial wallets cannot. As stated, “on the blockchain, these kinds of transactions are not that straightforward.”
“If one of the major use cases of blockchain is for payments, then the basic requirement is that the blockchain has to function just as good as today, if not better.”
wrote Catherine Gu, who is also the co-writer of the proposal by Visa.
The proposal comes amid the ongoing Bear market
This proposal comes during the time when the crypto market is still settling the dust of the FTX fiasco and the Terra Sisters crash. It will definitely give hope and promise to investors in aligning cryptocurrencies to banks.
In addition to this, Visa is also working with Ethereum to increase transaction speed, handle the high volume of transactions, better security, and integrate with other blockchains while keeping the privacy of customers.
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