When it comes to securing information and making transactions go faster, Blockchain technology is probably one of the most significant breakthroughs we’ve had in the last decades. Many companies have implemented blockchain solutions to improve existing processes, but one particular industry has seen the most benefits from the application of this relatively new tech. The financial sector has seen significant advantages in applying blockchain technology to improve transaction speed and security.
VISA is the latest company to announce the development of new financial applications harvesting the uses of blockchain technology. According to a blog post published on Visa’s website, the financial services company is exploring new ways to innovate through blockchain technology.
A team of researchers and engineers at VISA are studying the security, scalability, interoperability, and privacy of different blockchains and protocols to propose potential use cases for the company. This initiative is part of the company’s vision to innovate in Web3 infrastructure layers and blockchain protocols.
Specifically, VISA is studying the possibility of replicating and even improving the recurring payment setup we use to pay for local utility or subscription providers in the blockchain through a distributed and programmable fashion. The company detailed its process to write a smart contract application for a self-custodian wallet, which the issuer and the associated private key could exclusively control. Through this application, users could set up a programmable payment instruction that could push funds automatically from one self-custodial wallet account to another at recurring intervals without requiring the user’s participation each time.
The proposed solution is Account Abstraction, which aims to make user accounts on Ethereum function more like smart contracts by allowing users to have programmable features embedded into their wallets. This could help bring a familiar payment experience to the blockchain ecosystem.
Even though blockchain technology is still in its very early stages, many companies are investing in research and development of new use case applications to determine how they can impact how we transact and move money today and in the future. VISA continues to invest in products in this area to help evolve this technology and other concepts, including common consensus mechanisms, privacy, scaling solutions, and other possible blockchain use cases to create a bridge between the crypto ecosystem and the existing global network most users and merchants know today.
