Research Summary
This report by Xangle explores the concept of Account Abstraction (AA) and ERC4337, a proposal aimed at improving the user interface and user experience (UI/UX) in blockchain services. The report discusses the challenges of the current Web3 market, the potential of AA and ERC4337 to address these issues, and the potential applications of these concepts. It also delves into the structure and significance of ERC4337, the issues with blockchain’s UX, and the emergence of AA as a solution.
Key Takeaways
Challenges in the Current Web3 Market
- Need for Infrastructure Development: The report argues that for blockchain to achieve mainstream acceptance, there needs to be a shift in focus from infrastructure to services. However, it also acknowledges that blockchain technology still has numerous areas requiring advancements.
- Importance of UI/UX: From a user’s standpoint, the UI/UX of blockchain services is equally important as scalability and improvement in the developmental environment. The Ethereum community has turned its attention to Account Abstraction (AA) to address these challenges.
- Adoption of ERC4337: After extensive discussions, the ERC4337 proposal has been adopted and integrated into the roadmap to address the challenges in UI/UX.
Account Abstraction (AA) and ERC4337
- Concept of AA: In the blockchain ecosystem, AA ensures that account types remain invisible to the Ethereum protocol. It aims to deliver a seamless experience, akin to the user-friendly environments of Web2 platforms.
- Role of ERC4337: ERC4337 is a proposal to achieve AA in Ethereum without modifying the consensus layer protocol. It introduces a higher-level pseudo-transaction object called “UserOperation” and constructs a separate mempool for it.
- Potential Applications: The introduction of AA, embodied through Smart Contract Wallets (SCW), unlocks a plethora of features that can significantly elevate the user experience on Web3 platforms. These include transfer limit settings, key renewal & account freezing, session keys, auto-payments, multi-signature, gas fee subsidization, subscription system, pay for gas with ERC20 tokens, social recovery, and multicall.
Future of ERC4337
- Integration Progress: Two years after the announcement of EIP4337, substantial progress has been made towards its integration.
- Impact on Rollups: Most of the on-chain activity related to ERC4337 is happening on top of rollups and L2 chains, not the base layer. This is primarily due to high gas fees at the base layer.
- UX Improvement: With the adoption of ERC4337, blockchain services will be able to provide Web2-like UX and spark new business models and use cases.
Actionable Insights
- Investigate the Potential of AA and ERC4337: Blockchain developers and service providers should explore the potential of AA and ERC4337 to improve the UI/UX of their services.
- Consider the Use of Rollups: Due to high gas fees at the base layer, developers should consider using rollups and L2 chains for ERC4337 transactions.
- Prepare for UX Improvement: As blockchain services are expected to provide Web2-like UX with the adoption of ERC4337, businesses should prepare for this shift and consider how it could impact their operations and business models.
