- Visa proposed Account Abstraction as the solution for automatic payments combining 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-partnered 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 bullish thesis invalidation.
Visa has been attempting to establish its presence in the crypto space for a while now, and the financial services corporation is now doubling down on the same purpose. Leveraging the Ethereum blockchain, Visa plans to deploy its unique approach of automatic crypto payment.
Visa brings auto-pay to Ethereum
The head of central bank digital currencies (CBDC) and protocols at Visa, Catherine Gu, put forward a proposal to introduce auto-pay for Ethereum accounts. To make this happen, Visa plans on using 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 would allow for self custody wallet operating user account to function like a smart contract. This is necessary to establish automatic payments, as AA would eliminate the need for signing off on every transaction.
Adding to the same, Catherine Gu stated,
“AA has many potential use cases, especially on how the user experience on a digital wallet may be substantially enhanced with more flexibility embedded into user account to function more like smart contract.”
Visa will be implementing the solution on StarkNet, a Layer-2 blockchain built on Ethereum, in order to increase throughput. As per the proposal, using StarkNet’s account model, Visa managed to implement the delegable account solution, enabling auto payments for self-custodial wallets.
Ethereum price looking for a rally
Ethereum price rose by 4% in the last 24 hours to reclaim $1,200 as well as the support of $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 the active trend to be an uptrend.
Thus, if Ethereum price maintains this heading, its next target would be to breach the resistance at $1,240. This would allow ETH to run up toward the critical resistance at $1,306. Flipping this level into a support floor would allow the altcoin to initiate a recovery.
ETH/USD 4-hour chart
However, if the cryptocurrency fails to rise and dips below $1,187, it could end up tagging the critical support at $1,148. A daily candlestick close below this level would invalidate the bullish thesis, which would lead to Ethereum price dipping to monthly lows of $1,082.