Visa is Experimenting With Account Abstraction on Ethereum’s Goerli Testnet

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Last Updated on May 19, 2023 by Bitfinsider

Visa has dug farther into the Ethereum world, this time experimenting on the blockchain’s Goerli testnet with smart contracts aiming at transaction-free payments via account abstraction.

Visa used two sets of “Paymaster” smart contracts to utilize account abstraction, which extends such contracts’ capabilities to user accounts and allows wallets to autonomously conduct complex tasks and manage transaction fees on behalf of other accounts. In a report, the company revealed its testing.

The major goal of these contracts is to simplify user engagement with the Ethereum network by removing the requirement for end users to retain ether (ETH), Ethereum’s native coin, for transaction or “gas” fees and instead allowing users to pay with any token. According to Visa’s analysis, this methodology offers a more flexible alternative to the Ethereum mainnet’s normal fee structure.

Because Visa settles the USDC stablecoin on the Ethereum blockchain, the corporation may be able to use account abstraction scenarios to make stablecoin transactions more user-friendly. This involves handling transaction fees for users and giving them the opportunity to pay with any token they want, including stablecoins.

“During the verification stage, Paymasters determine whether to accept a UserOperation and implement any required fee logic during the execution phase.” As a result, they can sponsor transaction fees for customers and allow them to pay for gas in ERC-20 tokens, such as dollar stablecoins,” Visa stated in its research.

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