How Account Abstraction Simplifies Decentralized Network Operations

Account Abstraction (AA) is hailed as an innovative solution to simplify cryptocurrency adoption and accelerate Web3 development.

Let’s take a look at what it is and what it can do for users.

AA Overview

There are many things to say about Account Abstraction, but a short definition is that it is a method that can be applied to blockchain accounts to bring more flexibility, diversity and security to user operations. This can be achieved by leveraging smart contract accounts to use EOA instead. what does that mean?

• At the network/protocol level, basic (EOA) account details are hidden/abstracted and cannot be seen by the blockchain, and can only interact with smart contracts; when interacting with the virtual machine, the logic of the contract is programmable, so Be flexible

• At the user level, the multi-layered complexity of handling the operational load is hidden/abstracted by displaying a user interface with human-like interactions; under the hood, it is served by smart contract accounts rather than EOA, presenting a smart contract wallet Product form

Account abstraction was originally proposed by Ethereum co-founder Vitalik Buterin. Through ERC-4337, account abstraction has achieved the most famous configuration suggestions and strong community support.

Enough geek talk? Let’s take a look at the main application scenarios of AA:

13 Use Cases for Account Abstraction

Unable to remember words

One of the most promising use cases for account abstraction is the creation of wordless accounts. Traditionally, managing private keys has been a big hurdle for many users because mnemonic phrases are very difficult to store. Not to mention that once lost, the account is forever compromised.

AA systems eliminate this risk and provide secure settings for private keys through the account’s programmable logic.

Pros: Improved security and ease of use for Web3 account access

**New Network Authentication Standard:**Single Access Point

Account abstraction also opens up new possibilities for streamlining network authentication processes, allowing for easy and fast onboarding.

When the WebAuthn standard is integrated, private key authentication is built into the browser logic. The smart contract wallet interacts with these browsers and identifies the private key, matching/confirming it using AA. This way, the wallet can interact directly with the application without entering login data.

With traditional authentication methods, you have to manage multiple sets of credentials and go through complex authentication processes. With account abstraction, users can authenticate instantly. This will revolutionize the way users interact with Web3 applications, providing a seamless and secure user experience.

Advantages: Simplifies the login process on multiple platforms (greatly improves user experience)

Multi-signature authorization: More advanced signature scheme

Multi-signature authorization allows multiple parties to control a single account, providing additional security and control. This is particularly useful for organizations or groups that must make decisions collectively. Signers can be added or removed without limit (whereas the MPC wallet can only define a set of signers once).

Consider a Decentralized Autonomous Organization (DAO) that wants to make major decisions, such as making large investments or changing the rules of the organization. With multi-signature authorization, this decision needs to be approved by multiple members of the DAO to ensure that no one member can make a unilateral decision.

Advantages: Improved account management flexibility + enhanced security

**2FA as a security mechanism: **Layered Security

Two-factor authentication (2FA) has become a standard security measure in the digital world. With account abstraction, it is finally possible to implement 2FA on blockchain accounts. This adds an extra layer of security, ensuring that users’ assets are protected even if their private keys are compromised.

The second form of authentication can be a one-time password or code sent to the device, a fingerprint scanner, a retina scanner, etc.

Advantages: Reduced risk of unauthorized transactions + peace of mind

Transaction batch processing: Multiple operations only need to be approved once

Account abstraction also enables transaction batching, allowing users to bundle multiple transactions into a single operation.

Imagine that you want to interact with multiple dApps: typically, you need to make separate transactions for each dApp interaction, and each transaction incurs high fees. With transaction batching, you can package all of these transactions into one multi-action that requires approval.

Advantages: easy to use and efficient operation + save gas bills

Session Key: Temporary key pre-approved

Session keys are temporary and can be used for specific periods or dApp interactions, giving you more control over your account. Session keys are a solution at the intersection of user-friendly approach and controlled/minimal risk exposure.

For example, you can delegate control of your account to a trusted third party for a limited period of time. Once the session ends, the key becomes invalid, keeping the account secure. Traders or gamers can create a session key that expires after 30 minutes, allowing them to transact/spend within a certain limit without having to confirm each transaction with their wallet.

Advantages: Smooth and flexible operation

Recurring and scheduled payments: Automatic payments? Yes, please fill in?

Scheduled payments allow you to schedule payments in advance, just like you do now with traditional online banking/payment apps. This AA application takes Web3 UX to the level of Web2, helping you save time and effort.

With traditional blockchain transactions, you have to pay manually each time your subscription expires. With account abstraction, you can set up recurring payments for all services, automating the process and ensuring your subscriptions never expire. This will revolutionize subscription-based services in the Web3 space and provide users with a seamless payment experience.

Advantages: Simplified operation/convenience + peace of mind

**Trade Simulation:**View before signing

Account Abstraction Wallets also benefit from transaction simulation, allowing users to test their operations in a secure environment before executing them.

Paper trading is helpful if you want to interact with complex smart contracts but need to understand the results, fees, or how it will affect your account balance. The AA wallet UI can also display the fee costs and indicate/let you choose exactly which token to use to pay for the fees.

This is an operational and unique AA feature: when simulating batch transactions, you can use tokens that have not yet been officially deposited into your account. Yes, you read that right, this is AA magic?…Actually, no, it’s just code: the contract knows that the operations bundled together will be consecutive, so it allows you to see the hypothetical balance in advance , while allowing you to trade using tokens from the same bundled operation.

Advantages: Transparent operation + Ease of use + Avoid costly mistakes

**Use FIAT On-Ramps in real time: **Purchase gas with stablecoins

The FIAT on-on-off-ramp integration is not unique to account abstraction wallets, but the smart contracts do have a special advantage: they allow direct listing with stablecoins, bypassing ETH as a mandatory token for gas fees . This simplifies the cryptocurrency listing process and provides flexibility in token selection.

As we move towards Web3, AA Wallet is using on/off integration, not only for funding or withdrawals, but also for gifting platforms, voucher programs, etc., opening up a range of Web2 applications for Web3.

Benefits: Accessibility and user experience improvements

Withdrawal/Spending Limit:?‍♀️Spending Limit Management

Account abstraction also lets you set withdrawal or spending limits for your account.

For example, let’s say you’re concerned about the risk of your account being compromised. In this case, you can set a withdrawal limit to ensure that any possible attacker cannot drain your funds in one go or trade more than the specific limit you set.

Benefits: Enhanced security and asset protection

**Account Inheritance/Social Recovery: **Leave your cryptocurrencies to your loved ones

Preparing for a rainy day is an integral part of any security model: with account abstraction you can also enable the “inheritance” feature, which means you can decide which users (heirs, children, charities, etc.) will have access to/accept you in the event of your unfortunate passing. crypto assets.

Advantages: Asset transferability + security + peace of mind

**Gas extraction mechanism: **Gas is no longer a headache?.

Yes, the painful problem of gas fees and network fees finally found a solution through account extraction. Smart contract wallets offer some innovative gas benefits: Pay fees with stablecoins or other ERC-20 coins. The gas fee abstraction mechanism helps you pay fees with any token in your portfolio while also earning cashback and savings. Even gas sponsorship (the platform itself subsidizes the cost).

Advantages: Fee savings and cashback + flexibility of cross-chain payments

SUPPORTS QUANTUM SAFE COMPUTING:? Future ready.

Quantum computing is not a big thing yet, but its emergence is inevitable. Account abstraction enables smart contract wallets to be quantum compliant because they are upgradeable. By design, Smart Accounts are not only bound by ECDSA signatures (the only signature used by EOA), but they can be customized!

Advantages: Security + Future-oriented

in conclusion

Account abstraction improves the overall user experience in crypto by significantly improving operational speed, cost, security, flexibility, and convenience. With such strong influence, the account abstraction is in a voting position to drive the expansion of Web3 and blockchain applications across multiple industries, not just fintech.

Indeed, the potential applications of AA are wide and varied but not yet fully exploited, so there is still room for development: we are still in the pioneering phase and there is much work to be done in terms of standardization, infrastructure development or cross-industry research and implementation.

As a user, the advantages of “account abstraction” are undeniable, so in the end there is only one question left: have you already established an AA account? ?