Ethereum Blockchain Outclasses Visa in Transaction Volumes
Despite being a relatively new player in the payments industry, Ethereum has demonstrated its prowess as a blockchain technology that commands respect. This is a testament to the rapid evolution of blockchain, which has become a formidable force within a mere decade. Blockchain, as a payment technology, has experienced significant growth and is now considered a formidable competitor to established players in the industry. According to recent data from Coingraph, Ethereum processed transactions worth $3.01 trillion, while Visa processed transactions worth $3.08 trillion.
The fact that the emerging technology is gaining wider acceptance in mainstream circles is a clear indication of its progress. This is noteworthy given the common perception, often unjustifiably, that the technology is primarily used by scammers, drug dealers, and cybercriminals. As per CoinGecko’s data, Ethereum is presently the second-largest network with a market capitalization of $227.8 billion, whereas Bitcoin holds the top position with a market capitalization of $538.96 billion and Tether holds the third position with a market capitalization of $82.8 billion.
Ethereum, being the second-largest blockchain globally, is a significant force behind several financial technology solutions that aim to revolutionize the conventional finance market. The available solutions encompass decentralized finance (DeFi), staking, lending, flash loans, and various others. The environment has evolved into a multifaceted and prosperous entity, offering ample opportunities for future expansion – a clear advantage over conventional financial frameworks.
In 2021, it was reported that Ethereum had processed 4.5 times the number of transactions as Visa. According to a report authored by Josh Stark of the Ethereum Foundation, Ethereum’s trading volume in 2021 exceeded that of Visa. Approximately $11.6 trillion USD worth of transactions were conducted on the Ethereum network. According to the report, the stated amount exceeds that of Visa [$10.4 trillion] and is more than twice that of Bitcoin. Upon reviewing the most recent Ethereum daily transactions, it has been observed that etherscan recorded a total of 968,996 transactions on May 28. It is noteworthy that the highest number of transactions ever recorded on Ethereum was 1,932,711 on December 9, 2022. Visa is one of the established players who have chosen the popular blockchain as their preferred network for utilizing innovative technology.
In addition to documenting Ethereum’s economic state in mid-May, Visa leveraged Ethereum’s Goerli testnet to experiment with transaction-free payments using account abstraction. The company utilized a Paymaster smart contract, which enabled it to leverage account abstraction for executing intricate tasks on behalf of accounts and efficiently handling transaction expenses.
“At the moment, we are conducting research and experimentation with account abstraction and ERC-4337. As part of this process, we are pleased to announce that Visa has deployed our initial paymaster smart contract on testnet,” stated Cuy Sheffield, Visa’s Head of Crypto.
The Ethereum standard, ERC-4337, enables account abstraction without requiring any modifications to the consensus layer. This feature empowers users to bundle and automate transactions on the network. Visa stated that ERC-4337 presents intriguing prospects for enhancing the on-chain user payment experience by means of a self-custodial smart contract wallet. This development has the potential to revolutionize the manner in which users interact with digital currencies and assets.
In December of last year, Visa introduced a proposal that would enable Ethereum users to execute automated programmable payments without the need for any intermediary. In March of this year, the company reaffirmed its dedication to the cryptocurrency industry, dismissing rumors of a potential suspension of its cryptocurrency efforts in light of unstable market conditions.
According to Sheffield, our organization is actively collaborating with cryptocurrency enterprises to enhance the accessibility of fiat on and off ramps. Additionally, we are making strides in advancing our product roadmap to develop innovative solutions that can facilitate secure, compliant, and convenient stablecoin payments.
According to him, the preceding cryptocurrency market crash did not alter their perspective on virtual currencies. He further stated that the present moment presents an opportunity to construct and develop. As of Monday noon UTC, the trading value of ETH was recorded at $1,898, indicating a 3% increase within a day and a 4.5% increase over the course of a week.