The world’s largest payments company, Visa, has been experimenting with transaction-free payments using Ethereum Goerli testnet. Account abstraction made these payments possible.
According to data found on the chain, Visa utilized a smart contract known as Paymaster. This gave the corporation the ability to take advantage of account abstraction, which enabled them to conduct complex activities on behalf of accounts and better manage transaction costs.
The primary objective of the Paymaster contract is to liberate users from the necessity of keeping Ether. In their wallets by providing a mechanism through which users can pay gas fees using any token other than Ether.
In a recent tweet, Cuy Sheffield, Head of Cryptocurrency at Visa, stated that the company had deployed its first paymaster smart contract on the Goerli testnet. This news came about as a result of Cuy Sheffield’s previous announcement.
“Excited to see Visa deploy our first paymaster smart contract on testnet as we continue to research and experiment with account abstraction and ERC-4337,” he said. “Paymaster” is an abbreviation for “paymaster smart contract.”
Users are able to bundle and automate transactions on the Ethereum network, which is a standard developed by Ethereum. Account abstraction on the protocol without making any changes to the consensus layer.
Visa has agreed that the approach in question provides a certain degree of flexibility and has the potential to improve the user experience of making payments with digital currency.
“ERC-4337 lays down interesting future possibilities for improving the on-chain user payments experience through a self-custodial smart contract wallet. This, in turn, has the potential to transform the way users interact with digital currencies and digital assets.”
In December 2022, Visa made the initial announcement regarding the account abstraction initiative on its blog. On the Ethereum network, account abstraction was not being used at the time because it had not yet been implemented.
Visa’s collaboration with Ethereum dates back to at least 2021, when the business said it was settling payments in the USDC stablecoin on the Ethereum blockchain. This is an important milestone in the history of the alliance.
Despite the recent cryptocurrency market crash, which saw the failure of several prominent digital asset companies, Visa has not wavered in its commitment to cryptocurrency.
Back in March, Sheffield stated that the company intends to keep working on its cryptocurrency strategy.Sign new collaborations with businesses that are active in the digital asset area.
In addition, Sheffield stated that their perspective of digital assets has not evolved as a result of the current cryptocurrency market crash.
He also stated that they continue to believe that “fiat backed digital currencies running on public blockchains,”. Reference to stablecoins, have the ability to play a significant role in the payments ecosystem. This is a reference to the fact that blockchain technology is public.
The declarations were made not long after a report by Reuters said that both Visa and Mastercard. But Visa had opted to delay the introduction of their crypto-related products and services due to uncertain market conditions. The article was published soon before the statements were made.
More recently, Sheffield has made public an announcement regarding a brand new cryptocurrency-related project with the goal of fostering widespread adoption of public blockchain networks and stablecoin payments.
In addition to this, he republished a job advertisement for Visa that had been published on April 20. According to this advertisement, the crypto section of the corporation is developing the “next generation of products” to facilitate the digital commerce of everyday life.
Over the past several years, both Visa and Mastercard have been quite active in their pursuit of business prospects in the cryptocurrency sector, promoting crypto as the next big thing in the world of finance and payments.
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