VISA Proposes Automatic Payment In Ethereum Based on Account Abstraction On StarkNet

VISA Proposes Automatic Payment In Ethereum Based on Account Abstraction On StarkNet

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 account abstraction ethereum

Automatic Payment

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)

Account Abstraction ethereum eip-4337
Roadmap of account abstraction Ethereum

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.

Technology Will Change The Future Blockchain Made By Biconomy - What Is Account Abstraction In EIP 4337?
Currently, more and more Web3 dApps are being built on Ethereum. However, projects on Ethereum have always had an inherent weakness from the blockchain: high gas fees and slow transaction processing. This forces developers to switch to other layer 1 blockchains (BinanceSmartChain, Solana, Polkadot,…

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.

smart contract payment
Payment system through smart contract

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.

Retroactive Tutorial For StarkNet - Airdrop Opportunity After Aptos
StarkWare Overview StarkWare is one of the largest Layer 2 projects on Ethereum. StarkWare consists of 2 main components, StarkEx and StarkNet. In particular, StarkEx is a solution to support powerful processing with low fees for Dapps on Ethereum, typically many large projects such as dYdX, Immuta…

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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The information, statements and conjecture contained in this article, including opinions expressed, are based on information sources that Holdstation believes those are reliable. The opinions expressed in this article are personal opinions expressed after careful consideration and based on the best information we have at the writing's time. This article is not and should not be explained as an offer or solicitation to buy/sell any tokens/NFTs.
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