Advance
Imagine a world where interacting with a blockchain is as simple as managing a banking application on your smartphone. Today, blockchain interactions are often complex: you have to manage long recovery sentences and transaction costs must be paid in a currency (often ETH) that you do not always have. This world of complexity could soon become obsolete. Thanks to Account Abstraction (AA) , a major innovation, blockchain becomes more intuitive and secure, thus redefining the way in which users interact with Ethereum and other networks.
In this article, we are going to explore in depth whatAccount Abstractionis, how it works, its advantages and disadvantages, and why it represents a crucial advance for the massive adoption of decentralized technologies. Whether you are a decentralized or simply curious finance enthusiast to better understand the potential of the blockchain, this article will guide you step by step in the fascinating universe ofAccount Abstraction.
Table of contents
What isAccount Abstraction ?
A solution to long -standing problems
Since its inception, Ethereum is based on two types of accounts, each with its specificities:
Externally Owned Accounts (EOA)
EOAS are accounts held directly by users and controlled via a pair of cryptographic keys: a public key (which identifies the account) and a private key (which is used to authorize transactions). Concretely, as a user, this means that you manage a portfolio like Metamask or Exodus. Each transaction you make must be signed with your private key, thus guaranteeing security. These accounts are simple and practical to send or receive funds, but they have limits:
- No programmability: EOAS can only perform basic actions such as transferring funds or calling a smart contract . Any more complex logic must be delegated to another type of account.
- High risks: Losing your private key is to permanently lose access to your funds, without the possibility of recovery.
More information here
Contract Accounts (CA)
Contract Accounts are smart contract, that is to say programs deployed on Ethereumblockchain. Unlike EOAS, they do not have a private key and cannot initiate a transaction by themselves. However, they are able to execute automated instructions as soon as they are asked by a transaction sent by an EOA (or sometimes by another CA). For example :
- A user can interact with a dApp like Uniswap via a CA, which performs tokens' exchanges according to the rules coded in the contract.
- A turnover can also trigger more complex processes, such as the distribution of rewards in a stuking or the management of a decentralized loan.
However, all of this is based on an initial transaction from an EOA or another activated CA. Without this trigger event, a turnover cannot act independently.
The limits of this dual structure
If this structure allowed Ethereum to become the reference programmable blockchain, it has several drawbacks for users:
- Complex key management: EOAS require constant vigilance to protect private keys. An error or loss can lead to irreparable consequences.
- Dependence on ETH: To interact with a turnover, a user must always have ETH to pay transaction costs (Gas), even if his main activity involves other tokens.
- Lack of flexibility: EOAS do not allow you to personalize safety rules or automate complex tasks. For example, you cannot define specific expenditure limits or authorizations for recurring interactions.
These limitations make the user experience often frustrating and not very intuitive, in particular for newcomers to the ecosystem. It is here that theAccount Abstraction comes into play, offering an innovative solution to combine the best of both worlds.
The evolution ofAccount Abstraction
The first improvement proposals (EIP-86, EIP-2938)
The idea of Account Abstraction emerged in 2016. To understand its evolution, you must first know what an EIP ( Ethereum improvation proposition) . EIPS are technical documents that describe changes or improvements offered for Ethereum . Each proposal is subject to a discussion process within the Ethereum before a possible adoption.
EIP-86: More flexibility with personalized signature patterns
Ethereum accounts to manage transactions with various signature diagrams. Today, Ethereum uses a single type of cryptographic signature: ECDSA (Elliptic Curve Digital Signature Algorithm) . It is this signature that authenticates a transaction and guarantees that it comes from its legitimate owner.
With Account Abstraction , other types of signatures could be introduced. For example :- Biometric signatures : fingerprints or facial recognition.
- Multi-signating : Several users must approve a transaction before its execution, thus strengthening security.
However, the EIP-86 required profound changes in the Ethereumprotocol, which slowed down its adoption.
EIP-2938: The distinction between single-tenant and multi-tenant
in 2020, the EIP-2938 introduced concepts to differentiate two types of abstract accounts:Single-teante: these abstract accounts are intended for a single user or a small group. For example, a personal portfolio configured for specific needs (expenditure limits, social recovery, etc.).
Multi-teenage: This model is designed to be used by a large number of users within an application. For example, a decentralized platform like a Dex (decentralized exchange). In this case, a single abstract account can manage the interactions of thousands, or even millions of users.
How does it work?
Multi-teenage accounts use programmable rules to distribute the interactions between users. Take the example of a DEX: instead of creating a separate account for each user, a smart contract can centralize all operations. Each user acts as a "underput" within the framework of this shared account, but the rules of access and security remain strictly defined to guarantee the integrity of funds and transactions.
The EIP-2938 also offered specific types of transactions to optimize Smart wallets . But what is a Smart Wallet?
A Smart Wallet is a portfolio based on a smart contract , unlike a classic wallet that depends on an EOA account. This means that it is programmable and capable of managing advanced rules such as automatic payments, multiple authorizations or account recovery. These portfolios already exist and are used by solutions such as money or braavos , but their adoption is limited by the current constraints of the protocol.
The advent of the ERC-4337
In 2023, the ERC-4337 introduced a major advance for the Account Abstraction . But what is an ERC? Ethereum Request for Comments (ERC) are standards that define functionalities at the smart contract S, without modifying the fundamental rules of the Ethereum Ethereum .
ERC-4337 makes it possible to implement the Account Abstraction Without altering the basic protocol of Ethereum . This standard is based on an additional layer of smart contract S, added above the existing blockchain. This simplifies its adoption, because no disruptive update of the protocol is necessary.
Specialized mempools and mempool
One of the key concepts of the ERC-4337 is that of the users . Unlike conventional transactions which require a signature of an EOA, a useroperation encapsulates several actions (such as sending tokens or interaction with a smart contract ) in a single operation. It is more flexible than a traditional transaction because:
- It may include conditional rules, for example: "executes this transaction only if a price threshold is reached".
- It allows grouped or delayed , which simplifies complex interactions with decentralized applications.
- It can be sponsored by a third party via a Paymaster, avoiding the user to pay the Gas costs directly in ETH.
These users are grouped in a specialized mempool . But what is a Mempool?
Mempool or "Memory Pool") is a queue where transactions awaiting validation are stored. Traditionally, only transactions signed by EOAS can enter it. With the ERC-4337, a dedicated mempool is created to treat the useroperations independently, which reduces EOAS dependence and improves efficiency.
The impact of the ERC-4337
Thanks to the ERC-4337, developers can now take advantage of the advanced features of the abstract accounts while remaining compatible with the existing infrastructure ofEthereum. This development opens the way to a more fluid and intuitive user experience, by making decentralized portfolios as simple to use as a conventional banking application.
How doesAccount Abstraction work?
The role of users
As part of the ERC-4337, user interactions with blockchain are no longer made by conventional transactions initiated from an external Owned Account (EOA). Instead, they take the form of users . A useroperation is a encapsulated transaction which contains the intentions of a user in a flexible and programmed way.
Concrete example:
Imagine that a user wishes to carry out three actions on a decentralized finance platform ( DeFi ):
- Authorize the platform to use its tokens.
- Make a swap between two cryptocurrencies.
- Place the tokens exchanged in a liquidity pool.
With a conventional transaction, each step should be carried out separately, generating several Gas costs. On the other hand, a useroperation can combine these three intentions in a single operation. This approach simplifies the user experience and potentially reduces the associated costs.
The role of bundlers
To execute these users , an entity called Bundler comes into play. The Bundler is responsible for:
- Gather several users from a specialized mempool (a dedicated queue).
- Create a single transaction that brings together all these users.
- Submit this grouping with blockchain for validation.
Why is it necessary?
The users, although capsulated, are not conventional transactions. They cannot be validated directly on the blockchain because they do not have a associated private key to sign a low level transaction. The Bundler therefore acts as an intermediary, simplifying the integration of users in the Ethereumprotocol.Payment of costs with ERC-20 tokens
One of the major advantages of the ERC-4337 is the possibility of paying Gas fees with ERC-20 tokens , such as the USDC or the DAI, thanks to the Paymasters .
-
How does it work?
Paymasters are smart contract that cover transaction costs on behalf of the user. For example, if you want to pay with DAIs, the Paymaster will automatically convert your DAI to ETH (the native token required to pay the GAS) before submitting the transaction. -
Do the costs vary according to the token used?
Yes, the costs may vary because the conversion to ETH depends on the exchange rate between the token ERC-20 used and the ETH at the time of the transaction. Some tokens could cause slightly higher costs due to price variations and conversion costs.
Social recovery: an alternative to recovery sentences
A common problem of traditional portfolios is the loss of the recovery sentence . The ERC-4337 introduces a mechanism called social recovery , which simplifies the process without compromising security.
-
What is social recovery?
This system is based on guardians , that is to say individuals, devices or services designated in advance by the user to help them recover their account in the event of loss. For example, you could define your close friends, a portfolio service, or a secondary device like "goalkeepers". -
How does it work?
If you lose access to your account, guards can collaborate to allow recovery. Here is a typical scenario:- The user points out the loss of its access.
- The guards receive a notification and collectively approve a recovery request.
- The account is restored with a new private key, without the need for recovery sentence.
This system is already used by certain smart wallets , such as money and braavos , which offer an intuitive interface to configure and manage the goalkeepers.
Why are users more flexible than conventional transactions?
A classic transaction initiated by an EOA is limited in its capacities: it performs an action at a time, must be signed by a private key, and is based solely on the resources of an individual user.
On the other hand, a useroperation allows:
- To combine several actions in a single operation, such as authorization, swap, and the filing of a token in a stage.
- To delegate the payment of costs to a third party via a Paymaster.
- To define specific conditions before execution, as a minimum price for a swap.
- To simplify the user experience , by integrating options such as social recovery or biometric authentication.
TheAccount Abstraction and the useroperations therefore profoundly transform the user experience on Ethereum, making the blockchain interactions simpler, accessible and flexible. These innovations pave the way for broader adoption, especially with non -technical users.
Projects implementingAccount Abstraction
Account Abstraction is an emerging technology that attracts many projects in the blockchain ecosystem. Ethereum , with the implementation of the ERC-4337, is at the forefront of this innovation. This standard allows you to create Smart wallets capable of integrating advanced functionalities such as social recovery or payments for costs in ERC-20 tokens. Among the already compatible portfolios, money and braavos stand out. Silver offers social recovery features via predefined guards, while Braavos highlights options such as daily expenditure limits and biometric authentication.
Layer 2 solutions , Starknet adopted a native approach by directly incorporating Account Abstraction into the heart of its architecture. Each account on Starknet is a smart contract , eliminating the traditional distinction between Eoas and Contract Accounts . This native integration allows developers to design highly customizable dApp
Other initiatives like Safe (formerly Gnosis Safe) also adapt their solutions to take advantage of Account Abstraction . SAFE, known for its multisignature portfolios, explores integrations with ERC-4337 to provide increased flexibility to institutional and individual users. In addition, collaborations with traditional actors such as visa show that use cases extend beyond the crypto ecosystem. Visa is currently experimenting with automated payments on Ethereum via smart wallets incorporating Account Abstraction .
Finally, projects like Biconomy and Stackup participate in the implementation of bundlers Paymaster services , essential for the proper functioning of the ERC-4337. These infrastructures play a key role in the management of users, making it possible to simplify the user experience while guaranteeing compatibility with the Ethereum . Together, these projects shape the future of blockchain by making its tools more intuitive, flexible and accessible.
Near Protocol , known for its ease of use and high performance, also adopts Account Abstraction to improve the user experience. Unlike Ethereum , where Account Abstraction is still in development via the ERC-4337, Near incorporates this functionality natively thanks to its architecture based on flexible smart contract . This allows users to benefit from portfolios without complex private keys, with advanced options such as social recovery and automated payments . For example, Near already allows you to configure portfolios where transaction costs can be covered by a dApp or paid in tokens other than native currency. By combining this feature at a simple and accessible interface, Near Protocol positions Account Abstraction like a key lever to attract a non -technical audience and accelerate the massive adoption of blockchain.
FAQ onaccount abstraction
1. What is Account Abstraction ?
A technology to manage a blockchain account via smart contract S, offering flexibility and security.
2. Why is it important?
It simplifies the use of blockchains, improves safety and reduces barriers to the entrance.
3. What is ERC-4337?
A standard that implements AA on Ethereum using users.
4. What projects already use AA?
Wallets like money and braavos, as well as companies like Visa wallets
Conclusion onaccount abstraction
Account Abstraction is a major innovation that redefines interaction standards with blockchain. By combining simplicity, security and flexibility, it paves the way for a massive adoption of decentralized technologies.
Additional readings: To deepen your knowledge, click on fat words to discover our articles on Near Protocol as well as public and private keys .
Investments in cryptocurrencies are risky. Crypternon could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a property or service put forward in this article. Investments linked to cryptocurrencies are risky by nature, readers must do their own research before undertaking any action and investing only within the limits of their financial capacities. Past performance does not guarantee future results. This article does not constitute an investment .
Certain links of this article are affiliated, which means that if you buy a product or register via these links, we will collect a commission from our partner. These commissions do not train any additional cost for you as a user and certain partnerships allow you to access promotions.
AMF recommendations. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital .
To go further, read our pages legal notices , privacy policy and general conditions of use .
Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
