Auto Payments the next big thing in crypto? Yes, but only straightforward!
Visa made a wake-up call on the 19th of December to the blockchain community by pointing to auto payments, which if it worked on a blockchain, would be a significant driver for mass adaption!
When a giant corporation like VISA looks into such topics concerning blockchains, it’s a positive signal that blockchains are here to stay. The integration into the old economy is only a matter of time.
What are auto payments?
Everyone knows this feature from their bank account. Recurring payments can be set up in an automated way — two or three clicks only. For example, your monthly rent to your landlord is set up. The same goes for your Netflix subscriptions or electric bill from your local power supplier, to add other examples.
The VISA proposal — Account Abstraction
Visa proposed to solve these auto payments by introducing an “Account Abstraction” (AA). The idea behind Account Abstraction is to make user accounts more like intelligent contracts by allowing users to have programmable features embedded into their wallets.
The solution is well documented by VISA on this page.
The change to make auto or interval payments on their preferred blockchain is a complex approach and needs many changes on it.
The question is, can we have the solution in a different straightforward approach, like on a bank account?
The Signum way — suitable for the masses
Signum has a smart layer one approach, which opens the gate for many intelligent solutions. Those are not possible on other blockchains out of the box — like on Signum.
Subscription transaction — the lean way
Since the genesis block was created on Signum in 2014, the blockchain was already equipped with a subscription transaction feature, which, once set on the chain, executes auto payments within the given interval — accurate to the second.
How does it work?
An auto payment or subscription is created by the owner of an account by simply signing a transaction with the following attributes:
- Receiver account
- Amount in Signa
- Interval of the payment ins seconds
(minimum is 60 minutes as interval)
- Message for the receiver
Once this transaction is added to the chain, the network can execute the auto payment at intervals beside the average block load.
As long as the account has enough balance to pay the receiver amount and the small network fee of 0.01 Signa, the auto payment will be executed by each interval. No extra transaction or programable code is needed on the user’s wallet.
Given the auto payments running by the network service embedded in the node code, the number of executions per block is infinite!
Transparent for both sender and receiver
As this simple transaction is served on the Signum blockchain, both the sender and the receiver can check which subscriptions/auto payments will be executed next and which are already stopped by the sender due to insufficient account balance or on entry by the sender.
This makes it, for example, seamless for cooperates to follow up on stopped auto payments before the final paid period is reached — like Netflix would offer you a come-back discount without interruption of your used service.
Auto payments are a big thing!
VISA is right — auto payments are the next big thing, but maybe not the way they are looking to execute it. Having an alternative blockchain which can already serve today’s auto payment needs, in a smart way, without any additional programable code and with infinite interval payments, should hopefully be a trigger to re-think their current approach.
Signum would be happy to help VISA to onboard on a chain which has a sustainable and smart approach to execute auto payments with one transaction consisting of 184 bytes only, including all future payments!
Signum is the world’s first truly sustainable blockchain, featuring world-class applications on a sustainable leading-edge blockchain architecture. Compared to other cryptocurrencies, Signum powers its native cryptocurrency Signa (SIGNA), with a minor fraction of energy use and e-waste. Signum empowers users and developers around the world with innovative blockchain solutions for everyday life.
SNA is a Swiss Not-for-Profit Organization founded in 2021 to provide a solid foundation for Signum to grow and fulfil its vision of sustainability and innovation in blockchain technology.