In a recent article, Visa presented the concepts of a recurring payment system with Ethereum, presented by Fernando Amaral, Vice President of Products and Innovation at Visa do Brasil.
According to the study, blockchains are already a reality, at least with regard to the world of cryptocurrencies, which use these networks in their transactions due to the usability and security they provide. But the potential applications of this technology could go far beyond digital currencies.
In a recently published white paper, Visa proposes a concept called Account Abstraction (AA). Such a solution, which is still in the study and development phase, would allow users to schedule recurring payments in an intelligent and secure manner.
Visa study with Ethereum payments
The Visa document was prepared by a team studying the levels of security, scalability, interoperability and privacy of various blockchain protocols.
It is aimed at developers working on systems compatible with Ethereum, a blockchain-based network that has expanded Bitcoin’s capabilities by enabling code execution for decentralized applications.
The idea behind the AA concept is to make a user’s Ethereum accounts work more like a smart contract, allowing them to build more programmable features into their wallets.
The Visa team’s study describes how to write a smart contract application targeting a self-custodial wallet, i.e. one that is controlled exclusively by the user and their respective private key.
Through this application, people could set up a programmable payment instruction to automatically send funds from one self-custodial wallet account to another at recurring intervals without actively participating in each transaction.
Technology can leverage a new generation of financial applications, the company says
In the article presented by Visa, which began discussing the technology in December 2022, the company states that the emergence of cryptocurrencies has changed the way people think about digital money. As a result, new opportunities for financial applications arise in the market every day.
However, the study believes that the market for financial applications with cryptocurrencies is in its early stages and much will be ignored or explored.
In a way, this method mimics the process used today to set up recurring card payments. The difference is that, if the AA concept is enabled in Ethereum, Visa’s proposal could help bring payment experiences to users with familiar interfaces (as is the case with programmed automatic payments), but with all the security and usability of it. blockchain ecosystem. which has the characteristics of being a network available at any time, and without the presence of intermediaries.
According to Catherine Gu, head of CBDC (Central Bank Digital Currency) and Visa Protocols, the area behind the technical study, “it is necessary to integrate technologies that can add real value to the payments ecosystem” so that customers and partners can innovate.
The focus of the work was to extend Visa’s core competencies to the Web3 infrastructure layers and blockchain protocols that drive cryptocurrency development.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
