Subscription based payments on Ethereum- ERC-1337

The efforts to merge casual users with the web3 have been a point of discussion amongst the blockchain community. Recently, an open source project called the ERC-1337 bridged the gap a little further.

ERC-1337 is a a standardized interface for recurring subscription on the blockchain.

What that means is that ERC-1337 is a token protocol that makes the task of setting up a recurring payment system using a cryptocurrency easy for enterprises.

Subscription model has proved to be the healthiest revenue model on the internet and has gained a lot of popularity. To bring that in the crypto sphere will prove advantageous to both the subscriber and the dapp founder. As mentioned on the official gitcoin page:

Benefits for Users:

• No need to read a complex whitepaper to use dapps utility (as opposed to utility tokens)
• Skip understanding the founder’s vesting schedules
• Cancel at anytime

Benefits for the dapp owner:

• Receive consistent cash flow since you know your subscriber numbers, churn numbers, conversion rate
• Focus on making your customers happy (as opposed to having two actors: speculators and users)

ERC 1337makes it possible for the dapp owner to recieve periodic payments in any token he wishes or even give the option to choose the token to the subscriber. The owner can choose the the time interval for payments and the subscriber can choose how much he wants to pay in each installment and how much in total he’s willing to pay to the dapp owner.

Use case:

Let’s take an example of the use case of ERC-1337. John wants to set up a blogging Dapp. He can go through the whole process of creating a new ERC20 token by making a whitepaper, doing an ICO, airdrops, bounties etc, etc. Or, now with the help of ERC1337, he can simply add a subscribe button on his website that will allow the users of his Dapp to pay on subscription basis and opt out whenever.

To make web3 the mainstream way of browsing the internet, we’ll have to cater to the mainstream audience.

Check out 1337alliance’s website for more information.