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Visa Wants You to Pay Ethereum Gas Fee Easily, But There's a Catch

Fri, 08/11/2023 - 13:15
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Godfrey Benjamin
Visa has completed test that enables Ethereum DeFi users to pay gas fee in fiat
Visa Wants You to Pay Ethereum Gas Fee Easily, But There's a Catch
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American multinational payment giant Visa Inc is proposing a revolutionary way to pay for gas fees relating to Ethereum's ERC 20 transactions. According to a statement shared by the payment firm's tech team, the payment option will allow users making transactions on the Ethereum blockchain to pay the associated fee in fiat through their Visa cards.

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This approach will relieve users running transactions on the numerous decentralized applications (dApps) running transactions on the Ethereum protocol. The company said the solution had been duly tested on the Ethereum Goerli Testnet as it took advantage of the paymaster innovation.

"Our experiment aims to offer a promising approach to substantially addressing the challenges of blockchain-based transactions," the technical team wrote. "By leveraging the innovative concept of a paymaster, in conjunction with account abstraction and the ERC-4337 standard, we explored the potential for a process that could redefine blockchain-based transactions."

According to the design of the Visa gas fee payment feature, the move to integrate its solution will entirely be subject to the choice of each developer building on the Ethereum protocol. A crucial flexibility that is introduced is that users now generally have options, of which Visa can guarantee a high degree of speed compared to others.

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Ethereum: Payment Giant Visa Deploys First Paymaster Smart Contract on ETH Testnet

Obvious catch in offering

That the Visa gas fee payment solution is revolutionary, just like its other products, is not up for debate, but it may come at a very crucial tradeoff as showcased in the likely event that the company charges its own fees at some point in the near future.

Though the company was silent about this in its update, any implementation of additional fees will make the service more efficient but significantly more costly. Only time will tell whether or not traders will shun this tradeoff to embrace the new alternative.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on Blockchain.news, Cryptonews and Coingape, among others.