Payments giant Visa continues to explore digital asset payments and study innovative technologies to enable frictionless crypto onboarding and digital transaction experiences. After studying Account Abstraction to enable secure automatic recurring payments for self-custodial wallets, Visa explores how gas fees can be redesigned using Account Abstraction on Ethereum.
Visa Explores Account Abstraction On Ethereum For Crypto Payments
According to a recently published article “Rethinking Digital Transactions with Account Abstraction,” Visa is studying Ethereum account abstraction and proposal ERC-4337 for digital payments.
Visa has deployed two sets of Paymaster contracts on the Ethereum Goerli testnet, showing how to redesign gas fees on the blockchain to improve user convenience. ERC-4337 makes it possible for an owner to directly own smart contract accounts. In fact, Account Abstraction and Ethereum Virtual Machine compatibility offer more advantages for end users.
Guy Sheffield, head of crypto at Visa, took to Twitter to share the deployment of the first paymaster smart contract on the Ethereum testnet.
Excited to see Visa deploy our first paymaster smart contract on testnet as we continue to research and experiment with account abstraction and ERC-4337https://t.co/JJNWH2W2Ki https://t.co/RLRDx4yPXS
— Cuy Sheffield (@cuysheffield) May 17, 2023
Blockchain expert Cygaar noted that the Visa team created a paymaster contract that first gets the ETH exchange rate to the ERC20 token (L110) and then transfers that amount of ERC20 tokens to itself (L112). In the next experiment, a paymaster contract was set up to completely cover gas fees for user transactions.
Ethereum Creator Vitalik Buterin On Account Abstraction
Ethereum co-founder Vitalik Buterin claimed gas fees Account Abstraction is “something we’ve always wanted” and that it has “for a long time been a dream of the Ethereum developer community.”
Vitalik Buterin recommends crypto investors using social recovery wallets and multi-signature wallets to achieve self-custody of crypto funds.
With the ERC-4337 account abstraction and upcoming smart contracts wallets like Soul Wallet, wallet security will improve. Vitalik Buterin proposes to use social recovery for hot wallets that store a small portion of a person or organization’s funds, and multisigs for cold wallets that store a person or organization’s savings.
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