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.
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.