What is ERC-948?
Let's find out ERC-948 meaning, definition in crypto, what is ERC-948, and all other detailed facts.
ERC-948 is an Ethereum-based token protocol for subscription-based transactions between businesses and consumers. With blockchain technology becoming increasingly popular among various businesses, certain moves have been made to develop subscription-based integrations. This includes the development of subscription-based coins and protocols.
There is a wide variety of Ethereum-based tokens which serve different purposes and offer varying functionalities. With ERC-948, users may choose the opt-out feature. A smart contract can be developed to automatically withdraw tokens on a subscription basis if the users have ratified said contract.
An opt-out strategy is seen as the more effective option as it can provide certain incentives for both customers and businesses involved in the transaction process. A possible protocol based on ERC-948 may function as such:
- The user signs the contract by authorizing a certain amount of tokens to be removed from their wallet by a specific company at predetermined time intervals;
- At the end of each time interval, the company withdraws the specified amount of tokens from the user’s wallet;
- If the user’s tokens are not accessible, the consent to the agreement is inactive or the time interval since the last withdrawal has not passed, the transaction is programmed to throw();
- The contract states that the user can withdraw from the agreement at any time.
An opt-out smart contract based on the ERC-948 protocol for subscription-based transactions may follow this model:
- Service or company creates a smart contract allowing users to withdraw tokens;
- The user approves the contract without setting a limit on allowance or time period;
- The user invokes the createSubscription() function of the contract, which allows a certain amount of tokens to be withdrawn from the account at a given period by a specific company until the service is canceled;
- The withdrawSubscription() is run every time period by the service which uses the transferFrom() method to withdraw the tokens after the approval has been received if the funds are available and with the consent of the client.
ERC-948 has been seen as a profitable model for companies offering subscription-based services. While there is no unified standard for subscriptions on blockchain networks, wider adoption of ERC-948 might attract new investors and companies from the traditional markets.