*️ACCOUNT ABSTRACTION
Account abstraction (AA) is hailed as the innovative solution to streamline crypto adoption and speed up the advancement of Web3.
Last updated
Account abstraction (AA) is hailed as the innovative solution to streamline crypto adoption and speed up the advancement of Web3.
Last updated
AA moves crypto from the current approach of a simple EOA account, where a small mistake can result in a total loss, to a future where accounts can be customized with smart contracts. The shift from EOAs to smart contract wallets with arbitrary verification logic paves the way for a series of improvements to wallet designs, as well as reducing complexity for end users.
At its core, AA is all about creating custom user journeys at the onboarding, authentication, and transaction layer.
What this simply means — AA is applied to remove web3 UX complexities for the end-user, while executing blockchain operations required by the said user. This results in intuitive user flows, secure transactions, and better UX overall.
There are 4 elements that can be abstracted this way:
Gas Abstraction (Gasless Transactions)
Gas Token Abstraction (Pay gas in any ERC20 token)
Signature Abstraction
Nonce Abstraction
Gas Abstraction, or what we pioneered as Gasless, has become an industry standard. It is also one of the biggest AA features everyone is excited about. When users no longer need to concern themselves with managing or paying gas for their transactions, it results in a significant improvement in the user experience.
Picture this — it's your first trip to Bangkok, and you visit the airport's currency exchange to convert EUR to Baht. However, they inform you that you need to pay some USD to complete the currency exchange. Does that make any sense?
Yet, this is precisely what you might encounter when using a Decentralized Exchange (DEX), where, if you wish to exchange your USDC for DAI, you'll have to use the native asset (ETH) to complete the transaction. AA will eliminate these problems, making everything much easier.
In typical transactions with an Externally Owned Account (EOA), the user signs some random hex string pop-up that tells him/her nothing about what they are signing. This leads to countless users mistakenly approving scams and losing millions of dollars.
With AA and smart contract wallets, we can create custom pop-ups. In the specs of ERC 4337 AA, there is flexibility to have custom signature mechanisms that are not limited to ECDSA.
Linear nonces are necessary for a user to protect from replay attacks but it is a pain because they depend on previous transactions being confirmed before the next transaction goes through. This applies even if you’re trying to transact on a completely different dApp.
