ERC-948

What is ERC-948?

ERC-948 is a proposed Ethereum token standard designed to facilitate subscription-based services on the blockchain. It aims to create a standardized way for implementing recurring payments and subscription models using smart contracts.

Key Features

1. Recurring Payments: Enables automatic, periodic payments from subscribers to service providers.

2. Subscription Management: Allows users to start, pause, or cancel subscriptions easily.

3. Flexible Billing Cycles: Supports various subscription periods (e.g., daily, weekly, monthly).

4. Prepaid and Postpaid Models: Accommodates different payment structures.

5. Service Level Agreements: Can include terms of service within the smart contract.

Core Functions

1. subscribe(): Initiates a new subscription.

2. unsubscribe(): Cancels an existing subscription.

3. pauseSubscription(): Temporarily halts a subscription.

4. resumeSubscription(): Restarts a paused subscription.

5. processPayment(): Executes the recurring payment.

Advantages

1. Automation: Reduces manual processing of recurring payments.

2. Transparency: Provides clear visibility into subscription terms and payment history.

3. Flexibility: Allows for various subscription models and payment structures.

4. Reduced Overhead: Minimizes the need for intermediaries in subscription management.

Use Cases

1. Digital Content Platforms: Streaming services, news subscriptions, etc.

2. Software as a Service (SaaS): Blockchain-based software subscriptions.

3. Membership Services: Recurring fees for clubs or organizations.

4. Utility Services: Regular payments for ongoing services like cloud storage.

Challenges

1. Gas Costs: Recurring transactions may lead to significant cumulative gas fees.

2. User Experience: Ensuring smooth onboarding and management for non-technical users.

3. Regulatory Compliance: Addressing legal requirements for recurring billing in various jurisdictions.

4. Adoption: Gaining widespread acceptance among service providers and users.

Similar Terms

• ERC-20: The original Ethereum token standard that ERC-223 aims to improve.

• ERC-777: Another proposed improvement to ERC-20 with some similar goals.

• Ethereum: The blockchain platform that EIPs are designed for.

• Smart Contract: The underlying technology that enables token standards like ERC-223.