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When it comes to securing information and speeding up transactions, Blockchain technology is perhaps one of the most important breakthroughs we’ve had in the past decades. Many companies have implemented blockchain solutions to improve existing processes, but one particular industry has seen the most benefits from the use of this relatively new technology. The financial sector has seen significant benefits in implementing blockchain technology to improve the speed and security of transactions.
VISA is the latest company to announce the development of new financial applications that harvest the use 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 is studying the security, scalability, interoperability, and privacy of various blockchains and protocols to propose potential use cases for the company. This initiative is part of the company’s vision to innovate in the Web3 infrastructure layer and blockchain protocols.
Specifically, VISA is studying the possibility of replicating and improving the recurring payment setup used for local utility or subscription providers to make payments on the blockchain in a distributed and programmable fashion. The company detailed its process for writing a smart contract application for a self-custodian wallet, which can only be controlled by the issuer and the associated private key. Through this application, users can set up a programmable payment instruction that can automatically push funds from one self-custodial wallet account to another at recurring intervals without the need for user participation each time.
A proposed solution is account abstraction, which allows users to embed programmable features in their wallets to make user accounts similar to smart contracts in Ethereum function. This can help bring a familiar payment experience to the blockchain ecosystem.
Although blockchain technology is still in its early stages, many companies are investing in research and development of new use case applications to determine how it may impact how we transact and move money today and in the future. VISA continues to invest in products in this area to help develop this technology and other concepts, including shared consensus mechanisms, privacy, scaling solutions, and other potential blockchain use cases to build a bridge between the crypto ecosystem and the existing global network. Traders know today.
