In an exciting development for the cryptocurrency industry, global payments leader Visa announced today that it is trialing a new off-chain gas fee payment solution that could dramatically change how crypto transactions are processed.
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Gas fees, the small amounts of crypto paid to compensate blockchain miners for processing transactions, have long been a pain point for crypto users. They can often be expensive and unpredictable, especially during high network congestion. This has limited crypto’s usefulness for everyday purchases.
Visa’s new solution involves conducting blockchain transactions while still leveraging the security of the underlying blockchain. Gas fees are paid separately through a centralized, pooled account managed by Visa. This allows near-instantaneous settlement while avoiding congestion-related fee spikes.
The trial on the Ethereum network involves collaboration with Crypto.com exchange and Anchorage digital asset bank. Anticipating versatility across various cryptocurrencies and blockchains, the solution’s potential widespread acceptance could significantly enhance the practicality of digital currencies for both merchants and consumers.
“Paying gas fees inhibits crypto’s potential for day-to-day transactions,” said Visa CEO Al Kelly. “Our new off-chain solution provides the best of both worlds – crypto’s security and settlements speed without the volatility of gas fees.”
Cuy Sheffield, Head of Crypto at the organization, emphasized that decentralization remains at the core of their crypto efforts. “We’re committed to enhancing, not replacing, the trust inherent in open blockchains,” said Sheffield. “This solution aims to expand their usefulness.”
Cryptocurrency analysts say Visa’s move is a hugely meaningful step toward the mainstream adoption of digital assets. “Visa is validating the incredible promise of crypto as a true financial revolution,” said analyst Lisa Edwards. “This can completely redefine how the archaic payments infrastructure operates.”
Merchants are also excited at the possibilities. Patrick O’Connor, founder of crypto-friendly retailer Crypto Depot, said, “Volatile gas fees create massive headaches at checkout. This could finally make accepting crypto practical.”
The trial is slated to run for six months, after which Visa will evaluate results and potential expansion. But the company is betting big on crypto, playing a significant role in the future of money.
“We’re proud to take this major leap forward in enabling the growth and proliferation of digital currencies,” said Kelly. The crypto community eagerly awaits what other innovative solutions Visa’s crypto investment will unearth next.
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