Visa set to introduce automatic payment for Ethereum accounts using Layer-2 blockchain
- Visa proposed Account Abstraction as the automated payments solution that combines Ethereum-based wallets and smart contracts into a single account.
- StarkNet is the Layer-2 solution chosen to implement this Ethereum improvement proposal.
- Visa’s recent venture into the crypto space through FTX partner debit cards came to an end after the exchange’s bankruptcy.
- Ethereum price is painting green on the charts and needs to stay above $1,150 to avoid invalidation of bullish theses.
Visa has been trying to establish its presence in the crypto space for some time now, and the financial company is now doubling down on the same purpose. Leveraging the Ethereum blockchain, Visa plans to implement its unique approach to automatic crypto payment.
Visa brings automatic payments to Ethereum
The Head of Central Bank Digital Currencies (CBDC) and Protocols at Visa, Catherine Gu, put forward a proposal to introduce automatic payment for Ethereum accounts. To achieve this, Visa plans to use Account Abstraction (AA).
Account abstraction has been proposed as an Ethereum Improvement Proposal (EIP) since 2015 by Ethereum founder Vitalik Buterin. This concept basically combines the Ethereum wallets and smart contracts into a single account. This will enable the wallet self-storage user account to function as a smart contract. This is necessary to establish automatic payments, as AA will eliminate the need to sign each transaction.
In addition to the same, Catherine Gu stated,
“AA has many potential use cases, especially on how the user experience on a digital wallet could be significantly improved with more flexibility built into the user account to act more like a smart contract.”
Visa will implement the solution on StarkNet, a Layer-2 blockchain built on Ethereum, to increase throughput. According to the proposal, using StarkNet’s account model, Visa was able to implement the delegable account solution, which enabled automatic payments for self-deposit wallets.
Ethereum price looks for a rally
Ethereum price rose 4% in the last 24 hours to regain $1,200 as well as support at $1,187. According to the Parabolic Stop and Reverse (SAR), the cryptocurrency is currently in an uptrend. The presence of the indicator’s blue dots below the candlesticks highlights that the active trend is an uptrend.
Thus, if the Ethereum price maintains this headline, its next target will be to break the resistance at $1,240. This will allow ETH to run up to the critical resistance at $1,306. Turning this level into a support floor will allow the altcoin to start a recovery.
ETH/USD 4-hour chart
However, if the cryptocurrency fails to rise and falls below $1,187, it could end up marking the critical support at $1,148. A daily candlestick near this level would invalidate the bullish thesis, which would cause the Ethereum price to fall to monthly lows of $1,082.
