According to payments giant Visa, cryptocurrency users may one day be able to automatically pay their electricity and phone bills through their self-custodial crypto wallets.
Visa's crypto thought leadership team proposed a solution in a blog post on December 20 that would allow providers to automatically "pull" funds from users' Ethereum-powered crypto wallets without requiring the user to sign off on every transaction manually.
Auto-payments for recurring bills are common in traditional banking, allowing users to authorize certain service providers to withdraw funds from their designated bank accounts to pay bills such as a Netflix subscription or a monthly phone bill.
Account Abstraction (AA)
Automatic recurring payments in cryptocurrency will be possible through a new type of self-custodial wallet called "delegable accounts," which is based on the "Account Abstraction" (AA) concept, according to Visa.
Vitalik Buterin, the co-founder of Ethereum, proposed the concept in 2015, which essentially allows Ethereum-based wallets and smart contracts to be combined into a single account, among other use cases. Vitalik also echoed AA in a tweet in June 2022.
The Visa team claims that through an AA-based self-custody wallet or delegable account, user accounts will "function like smart contracts," meaning that people can schedule transactions without having to sign off on each one.
Account Abstraction On StarkNet
Because Ethereum does not yet support AA, Visa implemented a delegable accounts solution on StarkNet, a layer-2 blockchain built on top of the Ethereum blockchain, in order to increase transaction throughput while improving the underlying blockchain settlement layer capability.
The crypto startup, StarkWare, established StarkNet, and its account model is AA. In short, while concrete accounts examine whether a transaction contains a correctly signed signature for a given address, StarkNet's account abstraction examines whether the transaction originates from a given address.
Personal Reviews And Summary
As one of the world's largest payment networks, Visa is at the forefront of developing innovative payment products and solutions with real-world applications in mind, as well as actively exploring novel approaches to smart contracts to help make money and payments programmable.
Visa - the world's leading payment company, accepting and applying blockchain to the payment system, can show that this is the first step of the world's leading traditional companies to upgrade their systems which relied on old technologies. Blockchain has great technologies that will soon be accepted and applied to traditional companies, especially leading financial companies. StarkNet and its AA promise to develop the ecosystem very quickly in a short time when used by Visa in the system, which will help StarkNet gain more reputation not only in the cryptocurrency market but also in the traditional finance market.
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