In an innovative move, Visa has completed testing on a methodology that may lead to payment of on-chain gas expenses via traditional fiat currency on card transactions. The global payments titan is adapting to the reality of blockchain, which in many eyes, is instrumental in dictating the future of monetary interactions. One of the primary challenges that blockchain technology has encountered is the unfamiliarity and complications for mainstream users, particularly surrounding gas fees for ETH transactions.
As a backbone of the Ethereum network, transactional costs, termed ‘gas fees’, have been known to be somewhat involved for the average user. Visa addressed these complications as ‘burdensome.’ An opportunity to mitigate the overwhelming nature of such transactions may lie in removing this complexity, opening the door for a more accessible, user-friendly blockchain platform—a move that could ultimately lead to more widespread adoption.
Visa’s proposed solution involves using Ethereum’s ERC-4337 standard. This standard allows smart contracts to function as wallets through an ‘account abstraction’ mechanism. With the addition of a ‘paymaster contract,’ a type of smart contract that may cover gas fees for the user, Visa is trying to create a process where gas fees could be paid directly with a Visa card.
In the Ethereum Goerli testnet, Visa conducted testing for this new process with the goal of simplifying interactions for users and streamlining Ethereum transactions. By providing this service, Visa hopes to make it easier for merchants and decentralized applications (dapps) to facilitate payments, potentially integrating their pre-existing wallet systems or exploring a newly developed paymaster solution.
Incorporating the offerings of card-based gas fee payments might just be the trick to turn the tide in making blockchain and crypto interactions more approachable for the everyday user. With a rich history in the crypto sector, marked by an array of experiments, Visa has never been the type to shy away from the future. The recent initiative where Visa investigated conversion protocols for digital assets into fiat payments is a testament to their innovative inclinations.
Though exciting, the proposal does raise a few eyebrows. Visa’s influence on Ethereum’s ecosystem may bring up concerns about the further corporatization in what was started as a decentralized solution. Plus, there might be interest-related issues with Visa stepping into the world of on-chain gas fees. While progress and user-friendliness are important factors, it is just as essential to retain the decentralized ethos of the blockchain world. After all, that’s what makes it so revolutionary.
Source: Coindesk
