Visa Adopted Ethereum's Goerli test network for Efficient Transactions

Visa continues to investigate digital asset payments and investigate novel technologies to allow seamless crypto onboarding and digital transaction experiences. Visa investigates how petrol fees might be revised using Account Abstraction on Ethereum after researching Account Abstraction to enable safe automated recurring payments for self-custodial wallets.

Visa has utilised Ethereum's Goerli testnet to experiment with transaction-free payments using account abstraction. 

According to on-chain data, Visa employed a smart contract called Paymaster, which enabled the corporation to leverage account abstraction to conduct complicated activities on behalf of accounts and control transaction costs. The Paymaster contract's main goal is to allow customers to pay petrol fees with any token, reducing the need for consumers to have Ether in their wallets.

Visa Exploring Accounts Abstraction on Ethereum for Faster Transactions

According to a recent post titled "Rethinking Digital Transactions with Account Abstraction," Visa is researching Ethereum account abstraction and the digital payment proposal ERC-4337.

Visa has implemented two Paymaster contracts on the Ethereum Goerli testnet, demonstrating how to rethink blockchain petrol costs to increase customer convenience. ERC-4337 allows an owner to directly own smart contract accounts. In reality, Account Abstraction and Ethereum Virtual Machine compatibility provide additional benefits to end users.

Cuy Sheffield, Visa's head of crypto, took to Twitter to announce the launch of the first paymaster smart contract on the Ethereum testnet.

Visa has noted that the technique provides some flexibility and potentially improves the payment experience when using digital currency.

"ERC-4337 lays down interesting future possibilities for improving on-chain user payments experience through a self-custodial smart contract wallet, which can in turn transform the way users engage with digital currencies and digital assets. "

In December 2022, Visa disclosed the account abstraction initiative on its blog for the first time. Account abstraction was not yet deployed on the Ethereum network at the time.

Notably, Visa's engagement with Ethereum dates back to at least 2021, when the corporation stated that it will be settling payments on the blockchain in the USDC stablecoin.

Visa Keeping up Promise Despite Recent Crypto Winter

Despite the recent crypto crash, which saw some high-profile digital asset firms fail, Visa has stayed committed to crypto. 

Sheffield stated in March that the business intends to continue working on its crypto strategy and form new collaborations with organisations involved in the digital asset market. Sheffield went on to say that the current crypto crash hasn't impacted their opinion on digital assets. 

He stated that they continue to think that "fiat-backed digital currencies running on public blockchains," or stablecoins, have the potential to play a significant role in the payments ecosystem. 

The announcements came shortly after Reuters reported that Visa and Mastercard had opted to delay the introduction of crypto-related products and services owing to uncertainty.

Conclusion

In conclusion, Over the last few years, Visa and Mastercard have been aggressively seeking prospects in the crypto area, presenting it as the next big thing in banking and payments. Crypto payments with faster transaction speed are still something that industry experts are trying to figure out. However, recent blockchain developments have enhanced crypto payments up to a certain extent without altering the real-time price data.