Payment giant Visa has teased a possible integration with the Ethereum network to enable an automatic payment system. Visa has already been working with blockchain for a while. However, this time, it is preparing for a self-custody wallet.
Visa wants automatic transactions on Ethereum
Visa, which is one of the largest payment processors, is working on new ways so you can enable transactions without involving a third party. The payment giant is moving towards an automatic payment system using the Ethereum blockchain to achieve this.
In his proposal, he plans to take advantage of the Ethereum account abstraction first introduced by founder Vitalik Buterin in 2017. This account abstraction will allow transactions to be verified and validated on the blockchain using programmable validity, according to Visa.
“This means that, instead of hardcoding the validity conditions in the Ethereum protocol that will apply to all transactions in a general way, the validity conditions can be programmed in a customizable way in a smart contract per account”, the Visa proposal. saying.
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Basically, Visa plans to create a single Ethereum account that will combine aspects of user accounts and smart contracts to produce a single “delegable account.” It tries to take the operations that are used in bank accounts and integrate them into self-custody wallets to allow automatic payments.
In this way, a merchant, for example, will be able to set up a smart contract that will allow customers to pay automatically from their self-custody wallets. This means bringing automatic bill payments that are currently only available through traditional financial infrastructure to a decentralized blockchain system. However, this is still in the concept stage and has not yet been implemented, although the most recent EIP-4337 discusses this as a possibility.
To achieve this, Visa says it is working with third-party Ethereum developers. The work being done goes beyond producing the aforementioned self-custody wallets, but also involves increasing the transaction capacity and speed of the network.
This comes just two months after it became public that Visa had filed trademark applications to produce a crypto wallet. From a payments standpoint, the company believes that most blockchains need greater scalability to be adopted by big players like Visa.
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