Wirex, a crypto payment service provider, announced the launch of a zero-knowledge proof (ZK-proof)-based non-custodial crypto debit card service called W-Pay on October 3, 2023.
The new decentralized solution utilizes zero-knowledge technology and is built on Polygon’s Chain Development Kit (CDK), promising increased scalability and security. Polygon’s CDK was built with ZK-proofs in focus, enabling companies and users to develop their own ZK-powered layer-2 rail.
ZK-proof-based scalability solutions have become popular in the crypto space as the ZK protocol allows one party to prove to another party that something is true without disclosing any details about the claim itself. Over time, Ethereum and the likes of Polygon have seen the most development around ZK-proofs.
Key Features of W-Pay
W-Pay offers a range of ground-breaking features that enable noncustodial wallets and decentralized applications (DApps) to issue crypto debit cards. The firm claimed the decentralized approach would eliminate third-party risks and ensure account owners retain sole control over their money.
Some key features of W-Pay include:
- Swift and secure transactions through the integration of ZK technology
- Ethereum Virtual Machine (EVM) compatibility and account abstraction, which is a feature that streamlines transaction processes by eliminating inherent complexities
W-Pay also enables card transactions up to a predetermined limit and supports the integration of DApps and noncustodial wallets with conventional payment rails. The firm said W-Pay will usher in a new era of on-chain card payment services.
What W-Pay Means for the Crypto Industry
The launch of W-Pay is a significant development for the crypto industry as it represents a major step towards the adoption of non-custodial crypto debit cards. Non-custodial crypto debit cards give users complete control over their funds, eliminating the need to rely on third-party custodians.
This is a significant advantage over traditional custodial crypto debit cards, which require users to deposit their funds into the custody of the card issuer. This exposes users to the risk of counterparty default, as the card issuer could potentially lose or steal their funds.
ZK-proofs also offer a number of advantages over traditional scalability solutions, such as sharding and rollups. ZK-proofs are more secure and efficient, and they do not require any changes to the underlying blockchain protocol.
Overall, the launch of W-Pay is a positive development for the crypto industry. It represents a major step towards the adoption of non-custodial crypto debit cards and the use of ZK-proofs for scalability.
Impact of UAB PayrNet License Revocation
The recent ZK-proofs-based decentralized solution from Wirex comes amid difficulties with its card partner UAB PayrNet. Lithuania’s central bank revoked the license of UAB PayrNet in June, forcing the company to shutter its services in the European Economic Area.
The revocation of UAB PayrNet’s license has had a significant impact on Wirex, as it has forced the company to suspend its crypto debit card services in the EEA. However, the launch of W-Pay represents a potential solution to this problem, as it allows Wirex to issue non-custodial crypto debit cards without the need for a third-party card issuer.
The launch of Wirex’s W-Pay is a significant development for the crypto industry. It represents a major step towards the adoption of non-custodial crypto debit cards and the use of ZK-proofs for scalability.
W-Pay has the potential to revolutionize the way people use cryptocurrencies, making them more accessible and user-friendly. It also has the potential to boost the adoption of cryptocurrencies by merchants and other businesses.