Most recently, Visa submitted a proposal, and rumors have that both companies have reached an agreement that will be finalized soon.
Visa will allow Ethereum users to make a highly integrated self-governed payment mechanism that does not require the involvement of any third party.
The company will accomplish this with the help of a smart contract. A smart contract is a blockchain-coded mechanism that anchors the user and the contract account.
That makes the smart contract a self-authenticate wallet that can validate the transactions.
Making such sort of payments on the blockchain is more complex. Visa’s officials’ statement concluded that they would directly implement the solution of Ethereum’s layer 2 exchange.
On the other hand, Visa’s head of digital currencies and development, in his proposal, said that:
If the primary use case of blockchain exchange is payment transactions, then the business must perform this operation as efficiently as possible.”
That means if the current agreement takes place, the Ethereum blockchain will also be used for trading.
As of this writing, the Ethereum blockchain does not offer a trading facility. However, it is the platform that is being made for developers.
Moreover, Ethereum only offers two types of accounts: Externally Owned Accounts (EOA). This is an account governed by an external key.
The second type of account is a contract account (CA); these accounts are called smart contracts.
CA Cannot Initiate Any Transaction on Ethereum Blockchain
When talking of contract accounts, these accounts are not authenticated to make any transaction. These accounts can only validate the transactions.
EOA, this type of account, can also authenticate the transactions. Vis a will create a smart contract that will work on behalf EOA account.
The Balance of Ethereum on Various Exchanges is Historic Low
As talk of current market conditions, it is obvious that the overall market capitalization of cryptocurrency has declined significantly.
The reason behind the decline is the current market circumstances, such as economic turmoil, the fall of FTX, and the immense bear presence.
As a result, some of the largest cryptocurrency investors, also known as “crypto whales,” have pulled their money out of various exchanges.
Most recently, Bitfinix analysts have shared their point of view by saying that 2022 has seen the biggest decline in the market cap of BTC and ETH.
The reason is that these tokens were withdrawn from the exchanges. Talk of Binance, the world’s biggest centralized cryptocurrency exchange, has seen that BTC worth $ 3 billion has been pulled out of its wallets.
This accounts for the highest sum ever pulled out of Binance. These currencies have seen a 20% decline in their market cap.
The current proposal for Visa is gaining popularity at a very crucial time. This development can solve the overall troubles being faced by ETH recently.
The top leadership of Ethereum is seriously considering moving ahead with this proposal.
What is Visa Inc?
Visa is one of the world’s biggest digital currency companies. The company offers digital products to facilitate online finance. With vis cards, people can make online payments across the globe.
It has been one of the most secure and well-known names.
If this agreement takes place and Visa successfully develops the automated payment transactions protocol for Ethereum, it will certainly increase the use of Ethereum.
As both companies are seriously considering moving forward with this agreement, the crypto community is hoping for a positive outcome.
Moreover, this will also make the transactions much more transparent. Since FTX, once the world’s third-biggest exchange, has collapsed, regulators are after transparency in the market.
Visa offers to develop this automated transaction system for Ethereum can be the next big news that the market was eagerly waiting for.
This will also help Ether, the native token developed by Ethereum, much the needed momentum to send the price of the world’s second most valuable currency on the up.
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