A New Solution for On-Chain Gas Fees: Visa’s Proposal
A recent report reveals that Visa is exploring ways to simplify blockchain transactions by enabling users to pay on-chain gas fees directly with a Visa card. Currently, users are required to manage their ETH balance to cover gas fees, which can be a challenge. Visa’s proposal aims to eliminate the need for users to hold native tokens specific to a blockchain exclusively for gas fees.
Visa’s Solution for Gas Fees:
- Users can pay on-chain gas fees directly using a Visa card, simplifying the process.
- The solution leverages Ethereum’s ERC-4337 standard and a ‘Paymaster’ contract.
- Existing users will benefit from the simplified experience, and new users will have a streamlined onboarding process.
- Gas fee payment is received off-chain through a Visa card and covered on-chain on the user’s behalf.
- A ‘Verifying Paymaster’ smart contract delegates checks and sourcing of information to an off-chain component.
Visa has successfully tested this solution on the Ethereum Goerli testnet, demonstrating that gas fees can be handled without the need for ETH. The payment is processed via Cybersource, and a digital signature verifies the card payment. The proposed solution offers simplicity and ease of adoption for users, liberating them from the need to hold native blockchain tokens or bridge tokens for gas fees.
Hot Take:
Visa’s exploration of facilitating on-chain gas fee payments with a Visa card is a significant step forward for mainstream adoption of cryptocurrencies. By simplifying the process and removing the requirement for users to hold specific tokens, Visa is making blockchain transactions more accessible and user-friendly. This innovation has the potential to attract a broader audience to the world of cryptocurrencies and further integrate digital assets into everyday life.
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