Visa to Combine Ethereum Accounts for Programmable Payments

Global credit giant Visa is researching smart contracts and programmable payments. the firm wants to give Ethereum Holders set up automatic payments.

Visa has announced a proposal to enable Ethereum holders to set up programmable payments from their own custodial wallet. Other than this, Concept Will eliminate banks and centralized third parties from transactions.

Automatic payments made easy to set up on regular bank accounts. However, the bank eventually controls the system and the money is transferred. Visa is entering the realm of self-custodial crypto, and it is starting with the industry standard- Ethereum.

Despite the decline in the crypto market at large, the firm is keen to ultimately become the future of payments.

Visa to combine Ethereum accounts

Catherine Gu, head of visas for central bank digital currencies and protocols, co-authored the proposal. She said that “if one of the major use cases of blockchain is for payments, the basic requirement is that blockchain has to work just as well as today, if not better.”

The proposal uses a new concept known as account abstraction. Additionally, it is one of the leading Ethereum developer proposals using smart contracts to receive automatic payments.

Ethereum accounts include accounts with external ownership (user accounts) or smart contract accounts. Visa wants to use Account Abstract to combine them into a single Ethereum account type. In addition, it will provide smart contract functionality to Ethereum user accounts.

ethereum eth

Account abstraction, which was originally formalized by Vitalik Buterin as EIP-86 in 2017, has several advantages. It enables multi-owner accounts through multi-signature verification and delegated accounts. It also allows for a public ledger from which anyone can transact.

“Essentially, AA allows programmable validators to verify and validate any blockchain transaction,” Visa explained.

AA has yet to be implemented on Ethereum. However, the most recent EIP-4337 Proposes AA method in 2021 without changing network protocols.

Credit Giant working with Ethereum devs

The Visa team is working with Ethereum developers outside the company. It aims to increase the capacity to handle large volumes of transactions and provide security and interoperability.

At the end of October, Visa filed two trademark applications Claiming plans for your own crypto wallet. Additionally, there were provisions for management and auditing of crypto assets and utility tokens.

Even in October, the firm partnership Wall Street bank to collaborate with JPMorgan on private blockchain to ease payments between countries.

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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