Visa Deepens Crypto Payments Presence With Ethereum Account Abstraction

Visa, a leading player in the payments industry, remains committed to exploring digital asset payments and researching cutting-edge technologies that facilitate seamless integration of cryptocurrencies and enhance digital transaction processes. Following their analysis of Account Abstraction for enabling secure automatic recurring payments in self-custodial wallets, Visa is now delving into the redesign of gas fees on the Ethereum blockchain using Account Abstraction.

Visa Explores Account Abstraction On Ethereum For Crypto Payments

Visa has recently implemented two sets of Paymaster contracts on the Ethereum Goerli testnet, demonstrating their efforts to enhance user convenience by redesigning gas fees on the blockchain. Through the implementation of ERC-4337, users can directly own smart contract accounts, further leveraging the benefits of Account Abstraction and Ethereum Virtual Machine compatibility. These advancements bring additional advantages to end users in their digital asset transactions.

Head of Crypto at Visa, Guy Sheffield, recently announced on Twitter the successful deployment of the initial paymaster smart contract on the Ethereum testnet.

According to blockchain expert Cygaar, Visa's team developed a paymaster contract that retrieves the exchange rate of ETH to the ERC20 token (L110) and subsequently transfers the corresponding amount of ERC20 tokens to its own account (L112). In a subsequent experiment, a paymaster contract was established to fully cover the gas fees for user transactions.

Ethereum Creator Vitalik Buterin On Account Abstraction

According to Vitalik Buterin, co-founder of Ethereum, the implementation of gas fees Account Abstraction is a long-awaited goal and has been a cherished aspiration of the Ethereum developer community for quite some time.

Vitalik Buterin recommends that cryptocurrency investors utilize social recovery wallets and multi-signature wallets as a means to achieve self-custody of their crypto assets.

With the introduction of ERC-4337 account abstraction and upcoming smart contract wallets like Soul Wallet, the security of wallets is expected to improve. Vitalik Buterin suggests the use of social recovery for hot wallets, which store a small portion of an individual's or organization's funds, and multi-signature wallets for cold wallets, which safeguard an individual's or organization's savings.

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