Circle's Recibo technology facilitates on-chain payment transactions that include encrypted messages, thereby improving practical applications such as invoices and receipts. This solution works seamlessly with ERC-20 tokens and allows for gasless transactions. It offers a secure and versatile platform for merchants, financial institutions, and users to embed encrypted information within their payments. Recently, Circle CEO Jeremy Allaire announced the introduction of Recibo, an innovative open-source initiative aimed at enriching blockchain transactions by incorporating encrypted messaging. Recibo enables users to attach messages and metadata to their payments, covering aspects like invoices, receipts, and other essential transaction data. With this enhancement, Circle's Recibo fills a crucial gap in the existing blockchain payment framework, particularly where the widely-utilized ERC-20 standard lacks a message feature. Enhancing On-Chain Transactions with Circle’s Recibo At present, businesses encounter difficulties when trying to merge traditional payment necessities such as invoices and receipts with blockchain transactions. Recibo addresses this issue by allowing encrypted messages to be appended to transactions across any Ethereum Virtual Machine (EVM) chain. This feature promotes direct handling of accounting, tax obligations, and regulatory adherence on the blockchain, eliminating the need for off-chain solutions. Merchants are now able to add digital receipts to their transactions, and users can forward shopping cart IDs or payment invoices alongside their transfers. Moreover, Circle’s Recibo is compatible with ISO20022 payment messages, reflecting functionalities found in the SWIFT messaging system. Key Features and Gas Implications Recibo includes four primary routing transaction operations with messages: permitAndTransferFromWithMsg, permitWithMsg, transferFromWithMsg, and transferWithAuthorizationWithMsg. Each operation permits the transfer of coins along with supportive encrypted messages, ensuring enhanced security and transparency for transactions. However, these advancements come with a cost; using Recibo will require about 10, 000 gas per transaction, plus a basic transaction fee. For larger messages, an additional 560 gas will be charged for every 100 bytes of message data.

While this adds overhead, it remains relatively inexpensive compared to off-chain systems, especially for most messages. Security and Versatility Recibo is built to be secure and flexible in various configurations. It supports multiple encoding methods for diverse applications, accommodating custodial wallets and different cryptocurrencies. Additionally, the system identifies both the actual sender and receiver of the encrypted messages, even in transactions between exchange wallets, appearing as if they occurred privately between them. Nonetheless, Recibo carries a caution: it has not undergone an audit and is released under an Apache 2. 0 license for educational purposes only. Users are cautioned against storing sensitive information directly on the public blockchain, even in an encrypted state, due to potential key leakage. To address this risk, Recibo recommends the off-chain storage of sensitive data, accessed via revocable tokens. Related Reading: What Are The Best Crypto Casinos Right Now?5 Top Bitcoin Gambling Sites Online Listed (February Update) Disclaimer: