VISA pointed out that the automation of payments on the blockchain is “not exactly a simple task.
Payment operator VISA presented its conclusion on the issue of automating transfers from digital wallets. It is noted that implementing such a process on the blockchain is not that simple, unlike the way it is arranged with bank accounts.
There are several technical proposals on how to do this with cryptocurrencies on the blockchain, and one of them is the idea of Account Abstraction, which was put forward by the Ethereum development team and which VISA sees as one of the most promising.
We are talking about a new kind of account on the blockchain Ethereum .. That said, for now, smart contracts that are focused on automating payments cannot be done on the Ethereum blockchain. Currently, regular payments on Ethereum can only be organized manually.
One of the most promising approaches is seen as combining the functions of accounts and smart contracts into a delegated account, a new kind of account on Ethereum. The account abstraction that is taking place means the creation of a public account from which each customer has the ability to transfer funds.
Transactions will be verified based on conditions that will be spelled out for each account included in the delegated account using an individual smart contract.
Thus, the new kind of account combines a standard Ethereum account, as well as a smart contract prescribed for it. In this case, we are talking about entering several such sets (standard account + smart contract) from different users into one new record at once.
The way of confirming a transaction through this public record will not require a customer’s signature for each transaction. For new types of records, StarkNet may be used as a second layer to the Ethereum blockchain, with VISA so far talking about exploring this topic.
The payment operator sees the importance of finding a solution to automate payments on the blockchain without having to do it manually, and without the confirmation of such transactions every time by the account holder on the blockchain.
