How it works
At the core of Inqud's recurring payment system is the ERC20 Approve function, which is essential for managing automated transactions on the Ethereum (EVM) blockchain. Here’s a detailed look at how it works and integrates with the Inqud system:
ERC20 Approve Function
The ERC20 approve function is a standard method in Ethereum’s ERC20 token contract. It allows a token holder to authorize a specific address (in this case, an Inqud-managed address) to spend a specified amount of tokens on their behalf.
User Authorization: The user interacts with their Web3 wallet to approve the Inqud smart contract, allowing it to spend a certain amount of their ERC20 tokens.
Smart Contract Role: Once approved, the smart contract can execute transactions up to the approved limit without needing further user intervention.
Setting Up Recurring Payments
The process begins with the user granting approval for automated transactions:
Approval Transaction: This involves a blockchain transaction where the user approves the smart contract to spend their tokens.
Executing Recurring Payments
Fixed amounts charged at regular intervals (e.g., monthly). The user’s approval allows these scheduled transactions to occur automatically. Inqud schedules invoices automatically according to plan.
Variable amounts based on usage, such as services where payment amounts fluctuate based on customer activity. Merchant creates invoices via Inqud API
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