Ethereum Blockchain Outclasses Visa in Transaction Volume

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 development of blockchain, which has become a formidable force within a 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 $3.01 trillion worth of transactions, while Visa processed $3.08 trillion worth of transactions.

The fact that the emerging technology is gaining greater acceptance in mainstream circles is a clear indication of progress. This is remarkable given the common perception, often unjustified, that the technology is used primarily by fraudsters, drug dealers and cybercriminals. According to CoinGecko’s data, Ethereum is currently the second largest network with a market cap of $227.8 billion, while Bitcoin holds the top position with a market cap of $538.96 billion and Tether holds the third position with a market cap of $82.8 billion dollars.

Ethereum, which is the second largest blockchain globally, is a significant force behind several financial technology solutions that aim to revolutionize the conventional financial market. The available solutions include decentralized finance (DeFi), staking, lending, flash loans and various others. The environment has developed into a multifaceted and prosperous entity, which offers great opportunities for future expansion – a clear advantage in relation to conventional financial frameworks.

In 2021, Ethereum was reported to have processed 4.5 times the number of transactions as Visa. According to a report written by Josh Stark of the Ethereum Foundation, Ethereum’s trading volume in 2021 surpassed that of Visa. $11.6 trillion worth of transactions were conducted on the Ethereum network. According to the report, the stated amount exceeds Visa [$10.4 trillion] and is more than double that of Bitcoin. Reviewing the latest daily Ethereum transactions, it has been observed that etherscan recorded a total of 968,996 transactions on May 28th. It is worth noting 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 that has chosen the popular blockchain as its network of choice to leverage innovative technology.

In addition to documenting Ethereum’s financial health in mid-May, Visa leveraged Ethereum’s Goerli testnet to experiment with transactionless payments using account abstraction. The company used a Paymaster smart contract, which made it possible to leverage account abstraction to perform intricate tasks on behalf of accounts and efficiently manage transaction costs.
“We are currently 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 first paymaster smart contract on the testnet,” said 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 allows users to collect and automate transactions on the network. Visa stated that ERC-4337 presents exciting prospects for improving the payment experience for on-chain users using a smart contract wallet. This development has the potential to revolutionize the way users interact with digital currencies and assets.

Last December, Visa introduced a proposal that would enable Ethereum users to make 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 volatile market conditions.
According to Sheffield, our organization is actively working with cryptocurrency companies to improve the availability of fiat on and off ramps. In addition, we are making progress in advancing our product roadmap to develop innovative solutions that can facilitate secure, compatible and convenient stablecoin payments.

According to him, the preceding cryptocurrency market did not change their perspective on virtual currencies. He further stated that the present moment provides an opportunity to construct and evolve. As of Monday noon UTC, the trading value of ETH was recorded at $1,898, indicating a 3% increase in a day and a 4.5% increase in a week.