Future Of Wallets With Blockchain Abstraction Development

Blockchain technology has been rapidly gaining popularity for its decentralized and transparent nature and Ethereum has great traction over the same. Its smart contract and token (Ether) are powerful. The smart contracts on Ethereum are self-executive to develop DApps with different use cases, Blockchain Abstraction development is a potential feature to include that enables programmers to curate new accounts that leave the dependency behind and enable self-organizing all by itself excluding their restriction. AA is a trail-blazing idea for Ethereum and is well known for developers to create unique logic and rules outside the ecosystem. Here let us discuss how Blockchain Account abstraction has evolved and been evolving the blockchain ecosystem as a whole.

What is Account Abstraction?

Account Abstraction (AA) refers to an account in blockchain as a smart contract that contains logic and implements the flow based on the predefined instructions that may define social recovery, fraud monitoring, multi-calls, and more. Also, the shift here is moving user authentication from networks to smart contracts and powering the wallet designers to decide on user authentication parameters. As the future of blockchain seems to be very promising and evolving with new trends and technologies, Account abstraction is the greatest of all that has happened so far in crypto with smart contracts.

Account Abstraction in blockchain is a new paradigm making accounts programmable. At present, there are two types of accounts in Ethereum

1. Contract Accounts

2. Externally Owned Accounts (EAO - regular user account)

Everything happening on-chain will need approval from EOA using a private key - creating a signature to prove to the blockchain that it’s your account.

These cases make it evident that the private key makes your account vulnerable and you lose it once it's gone. The main issue is that the system is not as strong as it has to be and it's hard coded. By implementing a multi-signed smart contracts wallet the same repeats as every account comes with a key. This is the same with Coinbase similar to credit card numbers. A single-point failure makes it easy for governments to seize and freeze arbitrarily.

Blockchain Account Abstraction Improving This Case

AA unifies Contract accounts and EOAs making the accounts more programmable, makes the logic of signing transactions from the account instead of abstracts. Account abstraction is more flexible and it's possible to code for multi-signature 2-factor authentications, withdrawal limits, expiration, and more. Its non-custodial blockchain UX to scale is the most exciting part.

How Blockchain Abstractions Interact With Private Keys?

In account abstraction, the assets are held by the smart contracts and not by externally owned accounts. Here it is made possible for any kind of account contract to be coded.

1. A neatly generated key cannot be recovered once lost, but there are cases where smart contracts can execute some of its functions and logic even when lost.

2. By finding a way to authenticate users safely without using keys, smart contracts can be implemented. This is possible with communal wallets as anyone can implement smart contracts with them.

Account Abstraction has been a concept since 2016 and the Ethereum Foundation has been sincerely exploring the possibilities. The introduction of EIP-86 brought forwarding contracts to abstract signature verification and allowed signature certification schemes. The EIP 2938 in 2020 introduced Ethereum protocol changes allowing transactions to start with smart contracts and not EOA. However, they failed and eventually, Etheruem didn't stop experimenting.

The EIP-4337 For Blockchain Abstraction Development

In 2021 Vialik and team proposed EIP-4337 introducing AA that came up without making any changes in the core value of Ethereum. It proposed the creation of a higher-level system as memepool1. The operations to the new meme pool were bundled and submitted to Etheruem as a single transaction.

It also holds a part of EOA actions like transactions which are moved to the Ethereum virtual machine to improve greater flexibility, upgradability, and interoperability. More importantly, as EVM has a different runtime environment which is out of core Ethereum, it's now easy to make modifications more quickly.

This quality of EVM abstraction from the core makes AA possible to be used on other L2 blockchains, making communications and interactions seamless.

Different Use Cases Of Blockchain Abstraction Development

1. Sponsored transactions

By choosing to subsidize transaction fees as a part of their onboarding process the DApp developers can remove the biggest friction points for new crypto users. Even today potential users will have to go to the centralized exchanges, get done with their KYC, purchase Ethereum, and then make wallet transactions to experience the most of the Dapps and this can be sent out by adopting AA.

2. Self Custodial recurring payments on Wallets

As all the transactions are self-custodial now, the wallet will have to be approved synchronously. Bringing Account abstraction the transaction can be scheduled at a future time or based on the event flow, allowing us to set up recurring payment opportunities.

3. Social Recovery

By providing a recovery phrase or seed phrase the wallet is traditionally recovered. However, with problematic cases, the users tend to misplace these. But not anymore with AA as it is now possible to implement a social recovery process for users allowing them to designate multiple trusted individuals as recovery agents.

4. Default Multi-sign Wallets

In multisig wallets, it requires the signatures or approval of multiple individuals or parties to provide approval for transactions to be executed. It also requires the EPA to approve transactions, initiate transactions, and pay gas fees, and then it's a multisig smart contract. With Account abstraction development the account is programmed to require multiple signatures before the execution effectively making every account a multi-sig wallet by default. It allows users to easily set up multi-sig functionality even without using separate multi-sig wallet contracts.

5. Gaming Session Keys

Players in blockchain games either have every action or give the game the entire control over the wallet. With AA the smart contracts wallets are completely programmed to curate private burner keys permitting automatic transactions on specific DApps to increase security. Therefore all assets belonging to the main account are protected.

Blockchain Account Abstraction Getting Life

As the L2 chains are experimenting with their version of account abstraction, EIP-4337 is in progress. The StarkNet and L2 ZK-rollup are single-account contract types, it's the AA model permitting users to customize signatures to validate algorithms and pay gas fees on behalf of transaction accounts. The zkSync is another rollup implemented with AA to release and inspire EIP-4337. It requires all the accounts to implement the account interface that verifies and executes transactions and elects transaction sponsors

Potential Benefits Of Blockchain Abstraction Development

Blockchain Abstraction is a complex feature that requires a deep knowledge of Ethereum internals, smart contracts, blockchain technology, and more. AA in blockchain has several benefits that it yields to the ecosystem significantly to improve the functionality of DApps and platforms created on the Ethereum networks.

Transparency

Developers utilize AA to build complicated decentralized apps with exclusive features and requirements. The fee structures, development of multi-signature wallets with custom signing logic, implementation of access control during intricate circumstances, and facilitating interoperability across different levels of blockchain which is made possible with account abstraction.

Flexibility

With account abstraction developers can create their transaction validation mechanism. This allows the development of unique transaction types with various constraints, pricing schedules, and validation procedures.

Interoperability

Account abstraction in the Ethereum blockchain has made it possible for different blockchains to communicate with each other through a unique account type. This creates an opportunity to ease cross-chain transactions and data sharing between blockchains which ensures it is frictionless. Interoperability and connectivity of the blockchain ecosystem are improving and AA enables developers to expand the Ethereum blockchain to more than the default case of Ethereum virtual machine regulations. Therefore making it more feasible to curate unique features and conventional.

Where Do You Develop AA?

BlockchainX is a leading web3 development firm with the ability to curate customized blockchain solutions and upgrade your business operations to new horizons. We are skilled in learning, adapting, and implementing new technologies. With your requirements in abstractions for your account, we also tend to help you launch AA with our blockchain Account abstraction services.

Now that there are high accessibility to AA development, don't limit your wallet's experience anymore with the traditional norms that it is sticking to, instead leap on the new possibility, and take your operation to the peak with sacred transactions with AA.