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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
Recurring Payments: Enables automatic, periodic payments from subscribers to service providers.
Subscription Management: Allows users to start, pause, or cancel subscriptions easily.
Flexible Billing Cycles: Supports various subscription periods (e.g., daily, weekly, monthly).
Prepaid and Postpaid Models: Accommodates different payment structures.
Service Level Agreements: Can include terms of service within the smart contract.
Core Functions
subscribe(): Initiates a new subscription.
unsubscribe(): Cancels an existing subscription.
pauseSubscription(): Temporarily halts a subscription.
resumeSubscription(): Restarts a paused subscription.
processPayment(): Executes the recurring payment.
Advantages
Automation: Reduces manual processing of recurring payments.
Transparency: Provides clear visibility into subscription terms and payment history.
Flexibility: Allows for various subscription models and payment structures.
Reduced Overhead: Minimizes the need for intermediaries in subscription management.
Use Cases
Digital Content Platforms: Streaming services, news subscriptions, etc.
Software as a Service (SaaS): Blockchain-based software subscriptions.
Membership Services: Recurring fees for clubs or organizations.
Utility Services: Regular payments for ongoing services like cloud storage.
Challenges
Gas Costs: Recurring transactions may lead to significant cumulative gas fees.
User Experience: Ensuring smooth onboarding and management for non-technical users.
Regulatory Compliance: Addressing legal requirements for recurring billing in various jurisdictions.
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.