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Crypto Author Proposes AA for XRP Ledger Mass Adoption
Prominent crypto author Panos Mekras has proposed built-in account abstraction as the key to mass adoption of the XRP Ledger (XRPL). Mekras emphasized this point on X, highlighting its potential benefits for the projects building on XRPL.
Account abstraction would allow accounts to cover transaction fees and reserves for other accounts, facilitating easier onboarding for XRPL apps.
Mekras pointed out that most end users are indifferent to the underlying blockchain technology, focusing instead on functionality and problem-solving. He believes that mainstream adoption of Web3 requires this abstraction to make the experience more seamless for users.
Mekras also noted that similar solutions exist for EVM-compatible chains and Stellar (XLM), underscoring the importance of implementing account abstraction on XRPL soon. His proposition was met with agreement from some community members.
Digital Asset Custody: The Role of Account Abstraction
Custody of digital assets is evolving, especially with the transition of wealth towards self-custody in the Web3 space. Colton Dillion, CEO of Hedgehog Technologies, highlights this shift and discusses the implications for advisors in the crypto industry.
The digital asset industry is moving towards self-custody as investors become cautious about leaving assets with centralized exchanges. Chainalysis reports that personal wallets are increasing while assets sent to exchanges are decreasing. This trend is driven by a desire to avoid risks associated with centralized custodians.
According to Dillion, Account abstraction is one of the key solutions advisors and clients can explore. AA allows for layered permissions and enhanced capabilities like transaction batching and non-native gas tokens, streamlining self-custody.
Advisors need to prepare for clients who wish to self-custody their digital assets. While multisig and institutional cold storage are other options, AA provides a promising approach for secure, user-friendly digital asset management.
Access Etherspot Service Subscriptions with Stablecoins
Etherspot has integrated with Subs Protocol to offer developers flexibility in paying for their subscription plans using stablecoins. This integration simplifies life for Web3 developers.
Etherspot provides Account Abstraction infrastructure, including tools like the Prime AA SDK, ERC-4337 Skandha Bundler, Arka Paymaster, and various data APIs. These tools help developers create compliant dApps with features like Web2-like onboarding and gasless transactions.
Subs Protocol is a decentralized recurring payment system designed for Web3. It enables businesses to set up subscription models using secure crypto payment options.
Through this partnership, developers can pay for Etherspot subscriptions using stablecoins like USDC, USDT, or DAI. Monthly subscriptions are billed through Subs Protocol, with automatic renewals.
This integration makes Etherspot’s account abstraction services more accessible to developers. Read more in our blog post.
CoinEx Breaks Down Ethereum’s EIP-3074 Upgrade
CoinEx recently released an article discussing Ethereum’s upcoming Pectra upgrade, forecasted for release in the fourth quarter of 2024.
The upgrade will include EIP-3074, a proposal that enables smart contract-like functionality for wallets and strengthens the Ethereum ecosystem’s user experience.
The Pectra upgrade aims to enhance Ethereum’s scalability and functionality. One of its key features, EIP-3074, introduces two instructions to the Ethereum Virtual Machine: AUTH and AUTHCALL. These instructions allow users to delegate contract management of their Externally Owned Accounts (EOAs), creating innovative transaction schemes.
This upgrade will also raise the validator staking limit from 32 ETH to 2,048 ETH, enhancing staking opportunities.
The upgrade offers several benefits, including batch transaction processing, delegated security, and ERC-20 token gas payments. The inclusion of EIP-3074 in the Pectra upgrade moves developers closer to enabling asset recovery through social mechanisms in case private keys are lost.
According to CoinEx, EIP-3074 also has some limitations. For example, revoking account delegation also revokes authorization, requiring users to reauthorize transactions. Additionally, some worry about potential security risks, but experts believe that well-designed wallets can mitigate these concerns.
Overall, they claim that the Pectra upgrade promises to bolster Ethereum’s capabilities while addressing key challenges like scalability and validation limits, although developers continue to evaluate its potential vulnerabilities.
Another Perspective on Ethereum’s EIP-3074 Upgrade
Kadena released a more cautious article about Ethereum’s upcoming EIP-3074 upgrade, highlighting potential risks. According to them, EIP-3074 allows smart contracts to control funds from externally owned accounts (EOAs), enhancing flexibility but exposing users to risks.
Kadena notes that the upgrade lets wallet users authorize smart contracts to act on their behalf, potentially creating unintended actions unless replay protection is set. They compare this to giving an autonomous robot the key to your house, while Kadena’s approach is like using a remote-controlled robot, offering more control.
According to Kadena, their smart contract language, Pact, was designed to prevent transaction malleability, offering single-time actions through capabilities.
They believe EIP-3074 could lead to unwanted multiple-entry smart contracts, whereas their capabilities support one-time actions with secure and scoped events.
Insights from Yoav Weiss on the Account Abstraction Roadmap
Yoav Weiss from the Ethereum Foundation has released detailed notes on the future of account abstraction.
According to him, the journey began with Vitalik’s proposal for a new account abstraction model in 2021, leading to ERC-4337. Weiss outlines the roadmap, covering the past, present, and future of account abstraction. The goal has been to achieve full abstraction, covering aspects like authentication, authorization, replay protection, gas payment, and execution, while maintaining decentralization and censorship resistance.
According to Weiss, the current focus is on transitioning L2 chains to native AA. The process involves various RIPs (Rollup Improvement Proposals), which will incrementally enhance account abstraction capabilities. The next steps include modularizing the native AA roadmap and working towards EOF (Ethereum Object Format) compatibility.
Weiss also shared insights on the implications of EIP-3074. According to him, EIP-3074 allows third-party control over funds, raising security concerns. Potential risks include centralizing infrastructure, permissioned innovation, and compatibility issues with inclusion lists. He suggests alternative solutions, noting that EIP-3074 deviates from a coherent account abstraction roadmap.
Yoav Weiss also discussed technical debt associated with EIP-3074, as the opcodes AUTH and AUTHCALL would need to remain in the EVM, creating complexity. He proposed an alternative path using TransactionType4, which aligns with the native AA roadmap and offers advantages over other EOA improvement proposals.
How ZK-Rollups Are Simplifying Account Abstraction in 2024
According to blockchainmagazine.net, ZK-Rollups and account abstraction are transforming blockchain technology in 2024. These advancements improve scalability and user experience.
ZK-Rollups, or Zero-Knowledge Rollups, process transactions off-chain on a sidechain using zero-knowledge proofs. This reduces the main blockchain’s load, resulting in faster transactions and lower fees.
According to the article, here are 10 ways ZK-Rollups are simplifying account abstraction:
- Off-Chain Computation: ZK-Rollups handle complex account abstraction logic off-chain.
- Reduced Gas Fees: Lower transaction fees for account abstraction features.
- Simplified Smart Contract Development: Less code is needed for account abstraction logic.
- Enhanced Security: ZK-Rollups inherit main blockchain security.
- Scalability: ZK-Rollups enable massive off-chain transaction processing.
- Faster Onboarding: Easier user onboarding with account abstraction features.
- Privacy: Account abstraction enhances ZK-Rollups’ privacy benefits.
- Interoperability: ZK-Rollups explore cross-chain account abstraction.
- Innovation Testing: ZK-Rollups as a sandbox for account abstraction.
- Mainstream Adoption: ZK-Rollups accelerate account abstraction adoption.
According to the source, this synergy accelerates mainstream blockchain adoption through simpler, more flexible, and secure account management.
Kudos to Francesco Andreoli & Mirko Garozzo for their fantastic initiative with the “Account Abstraction: Afterhours” video series. Two episodes have already been released. Check out their latest interview with Etherspot’s CEO, Michael here to delve into the depths of smart wallets, bundlers, paymasters, and a shared mempool.
Start exploring Account Abstraction with Etherspot!
- Learn more about account abstraction here.
- Head to our docs and read all about Etherspot Prime.
- Skandha — developer-friendly Typescript ERC4337 Bundler.
- Explore our TransactionKit, a React library for fast & simple Web3 development.
- For a plug & play integration, review the BUIDLer react component.
- Follow us on Twitter and join our Discord.
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