It took power-steering more than 50 years to gain a massive 100% adoption; whereas cellular phones took 30 years for over 80% adoption and with the introduction of the EIP-4337, it is expected that blockchain shall defy all previous technology adoption to end up as a numero-uno claimant of the fastest adoption in the age of technological innovation.
Because, right at this point, the space has been plagued by complex UX. For example, every time you need to install wallets for onboarding, swap across various protocols for exploiting arbitrage opportunities, interact with dapps and wallets time and again while playing decentralized games. The sum of all makes blockchain too complex for a newbie, who may not be a nerd. And as it is said, real innovation is not something which the smartest mind could comprehend but the one that the dumbest mind could decipher. Account abstraction is going to change that forever in the blockchain space and considering how quickly it has been deployed in comparison to other technological innovations, it is going to be a revolution in the Web 3.0 space.
What is EIP 4337?
EIP 4337 is going to change how users interact with blockchain protocols. But before we delve into it, we need to understand Ethereum accounts. On the Ethereum blockchain, there are two accounts:
- Contract Accounts
EOA are externally owned accounts that users utilize to sign transactions. In EOA, the protocol checks the ETH balance, the private keys, and the recipient address. Whereas Contract Accounts are hard coded into the protocol’s execution. Or, to put that into perspective, contract accounts are the rules and regulations governing the protocols.
However, the problem with the traditional signing of the transactions is the user must be interacting time and again with the smart contract for executing functions. As a result, the process becomes tedious, resource intensive and unsafe at the same time.
How EIP-4337 via Account Abstraction is Going to Change the Process?
For the first time, the users on the Ethereum Network can set up user-operations to operate at a higher level of the Mempool. To put that simply, suppose if you are playing a decentralized game, instead of signing transactions time and again, you can set-up a session time, which shall allow you to interact with the mempool numerous times and conduct operations through your sessions keys that you have customized as per your own gaming logic.
Think about your grandma playing blockchain powered video games. She would find it excessively complex to sign transactions every time but when account abstraction is in place, a session-time can be triggered, and a session key is going to change authentication and validation on the network. That said, though you are playing decentralized P2E games, it shall look like a normal game to you. And that’s what EIP-4337 promises when it comes to adoption. However, this is just the tip of the iceberg that we spoke about. If you want to see how space will transform, read on.
How Will the Block Space Transform Under EIP-4337?
User’s Logic Instead of Protocol’s Logic
For the first time, users have the discretion to set-up their own logic while interacting with their accounts. For example, we have heard time and again that people lose money to private key compromise. Through EIP-4337, a new model could be in place.
For example, wallet owners can set up authorized counterparties to sign and validate transactions. For example, Alice has access to the wallet and while driving she met with a car accident. Now, Alice’s private key goes into oblivion post that under no circumstances, Alice’s family can bequeath her cryptos and NFTs. But account abstraction makes that possible through contract logic externally triggered by the users. So, Alice can designate maybe 3 to 5 members with a N-1 logic in place. The N-1 logic says that the account can be operational even if one member remains non-capacitive to perform functions. Hence, no crypto goes into an everlasting black hole if you die. It can be easily acquired by the next of kin and kith.
Session Keys for Specific Time
Why is DeFi for nerds? That’s something which a user like me always asks. In case you are not able to resonate with the fact. Try swapping across multiple protocols for arbitrage opportunities. The worst case would be when you are acquiring flash loans on AAVE and swapping the tokens on Curve to exploit the price discrepancies. However, one thing that you do not fail to notice is the process becomes so complex that only developers and high-end nerds could relate with the same. However, the upside is limitless.
You can take millions of dollars without collaterals and swap the same and pay back the principal and walk away with the change in price. That’s your profit. Sounds like cake, huh! It ain’t because if you fail to complete the process, you end up paying for the gas, anyways. Mind you, the gas goes way over 100$ sometimes. With account abstraction, you can set-up session keys and instead of multiple swaps and approvals across various protocols, you can quickly do multiple transactions in bundles and enjoy DeFi like never before.
Wallet Recovery Possible
Users can enjoy wallet recovery in case they have forgotten the password. If you haven’t felt the pain, let this fact sink in deep. An individual lost 700 million to inability to arrange the seed-phrases in the right order. Under account abstraction, for the first time, such account recovery can be done quickly and, in a time, bound manner.
It is expected that blockchain shall add $1.5 trillion to the global GDP by 2030. The introduction of account abstraction has been just on time to help achieve this feat. Through simplicity envisaged by EIP-4337, individuals for the first time can look for a better alternative financial system which is built not on false promises and FRR but on a battle-tested democratized technology system run by the community as a whole.
VE3 has already helped clients build non-custodial wallets using the account abstraction features to help drive crypto adoption at a pan global level. Herein, we provide enterprises with the necessary resources, expertise, and support required for successful implementation of blockchain projects. We help enterprises in the development of smart contracts that utilize account abstraction by implementing EIP-4337. With our extensive experience in the field of blockchain, we provide enterprises with the necessary knowledge and tools to create complex and flexible smart contracts that can be customized to their specific needs.
VE3 provides a one stop platform to kick-start your blockchain project along with necessary expertise and resources. The platform covers all the popular public and enterprise blockchain networks and allows you to quickly start your node on selected network. Furthermore, VE3 assists enterprises in testing their smart contracts to identify potential issues and ensure their proper functioning. This can be crucial in mitigating the risk of errors and failures, ensuring a successful implementation of account abstraction.