An integral part of the cryptocurrency world are transaction fees, also called “gas fees.” Although Ethereum tried to simplify them, unexpected help came from the global payment processor, Visa.
Ethereum, one of the leading cryptocurrencies in the world, has long struggled with challenges related to transaction fees. Many users complained about high costs and complicated processes associated with paying for transactions. To meet these challenges, the Ethereum network undertook several initiatives, and the latest collaboration with Visa might be a game-changer in this respect.
The collaboration involves allowing Ethereum users to use Visa cards to cover network fees. So far, paying for these fees required owning ETH, and the volatility of this cryptocurrency only complicated the whole process. The introduction of the Visa payment system can greatly simplify the whole process, especially for those unfamiliar with the technical aspects of cryptocurrencies.
With the help of the Cybersource network, Visa plans to facilitate the payment process for users, allowing for off-chain direct payments. Importantly, users will not need to have ETH to cover the network fees. In return, they will receive a digital signature for their wallet to approve the payment.
Visa’s interest in blockchain technology, especially Ethereum, is not surprising. Although Visa has been around much longer, Ethereum achieved impressive results, processing transactions worth over 33 trillion dollars, while Visa only reached 11.6 million (note: there seems to be an inconsistency in these figures) transactions of Visa and Ethereum.
Recently, Ethereum’s network fees have been declining, as confirmed by IntoTheBlock’s analysis. This decline could have been caused by a fewer number of transactions on the network in recent weeks. However, despite the market slowdown, Ethereum maintained its activity, as confirmed by data from Glassnode’s analysis regarding Ethereum’s activity.
Ethereum continues its efforts to optimize and improve the network, and collaboration with Visa might be another step towards improving user experience. Such collaboration not only increases trust in blockchain technology but also demonstrates the growing interest of traditional financial giants in new technologies article on the collaboration of financial companies with cryptocurrencies.
Although the world of cryptocurrencies remains mysterious to many, initiatives like the one between Visa and Ethereum show that traditional financial institutions recognize the potential and opportunities arising from blockchain technology.
