Everything About Account Abstraction: Arka Paymaster, EIP-3074 safety, Degen Chain tops TPS charts, goodcryptoX launches public beta, and gas fees existence

Everything About Account Abstraction: Arka Paymaster, EIP-3074 safety, Degen Chain tops TPS charts, goodcryptoX launches public beta, and gas fees existence

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April 24, 2024

We are welcoming you to our weekly digest! Here we discuss the latest trends and advancements in account abstraction.

Please fasten your belts!

Etherspot officially introduces Arka Paymaster Service

Etherspot has introduced its latest development, the open-source Arka Paymaster Service, a key component of ERC-4337 and Account Abstraction.

Paymasters are smart contract accounts that allow sponsored transactions. It enables projects to cover transaction costs for their users. With Paymasters, users can pay for gas using any ERC-20 token, such as USDC or USDT, instead of requiring native blockchain tokens.

This benefits both developers and users by allowing developers to sponsor gas fees and accept gas payments in stablecoins or other ERC-20 tokens.

Etherspot’s Arka Paymaster Service is a backend service that validates whether a dApp user is eligible for sponsorship and generates the necessary sponsorship transaction on their behalf.

It offers two important features:

  1. sponsored transactions
  2. gasless transactions

Arka Paymaster Service’s open-source nature is crucial for advancing and adopting Web3 since it fosters community collaboration, transparency, and innovation.

By making the service open-source, Etherspot encourages developers to study, modify, and contribute to the codebase.

Other than Arka, Etherspot offers a range of tools to help developers move towards Account Abstraction. Etherspot’s hosted services are now available for EntryPoint v0.7 on Ethereum, Optimism, Arbitrum, Polygon, Base, Avalanche, Gnosis Chain, BNB Chain, Rootstock, Flare Network, Fuse and Mantle!

This development places Etherspot among the pioneers in implementing this upgrade, which is designed to enhance performance and interoperability between Ethereum and various other major EVM-compatible chains.

If you’re ready to unlock the full potential of your project with Account Abstraction, obtain your API key and start BUIDLing with Etherspot: https://portal.etherspot.io.

Ethereum community debates the safety and necessity of EIP-3074

The Ethereum community is heatedly discussing the merits and drawbacks of EIP-3074.

Critics argue that EIP-3074 poses significant risks to user funds. It relies on wallets to prevent unauthorized access and requires users to understand a new, complex security model.

They claim that the proposal lacks essential security controls, making it an “all or nothing” access model, unlike the trust-minimized design of ERC-4337.

Opponents also assert that EIP-3074 fails to improve the overall user experience, as the potential loss of funds due to scams outweighs any claimed benefits. They argue that the proposal creates two incompatible wallet stacks and leads to fragmented user experiences and liquidity.

Furthermore, critics maintain that EIP-3074 is unnecessary, given the existence of AA solutions like ERC-4337 on the mainnet and the ongoing development of gas-efficient native AA in the protocol.

On the other hand, proponents of EIP-3074 argue that it offers benefits such as gas abstraction.

Still, the Ethereum community remains divided on the proposal’s overall impact on the ecosystem’s security, user experience, and future development.

Non-custodial DEX trading platform goodcryptoX launches public beta

goodcryptoX, a next-generation decentralized trading platform powered by ERC-4337 account abstraction, has officially launched its public beta.

The non-custodial platform allows users to trade on AMM DEXs while maintaining complete control over their funds using Smart Contract Wallets and ERC-4337 Account Abstraction.

goodcryptoX is currently available on Ethereum, Base, and Arbitrum networks, with support for Solana and BSC coming soon.

Users can create and manage wallets using their social login. This gives them a user-friendly experience without compromising security.

The platform offers advanced DEX features:

  • limit and trailing orders
  • Grid and DCA trading bots
  • market screeners with auto-buying
  • ability to pay gas in any ERC20 token

Degen Chain L3 sets new TPS record within Ethereum ecosystem

Degen Chain, a new Ethereum layer-3 network, recorded the highest transaction per second count in the Ethereum ecosystem on April 19.

The memecoin chain processed 3.08 million transactions, with a 62% increase in TPS to 35.7. It even surpassed Base, Arbitrum One, Ethereum, and zkSync Era on April 19.

However, despite the high TPS, Degen Chain’s trading volume over the last day was only $819,600. The result is an average transaction value of $0.27 (significantly lower than Ethereum and Base at $1,867 and $170, respectively).

Such an event underscored the limitations of using TPS as a sole metric for measuring a blockchain’s scalability, as it does not consider the computational size of each transaction.

Degen Chain is powered by the DEGEN token, which originated as a tipping token on the Farcaster decentralized social media platform. The token’s popularity has led to the creation of the Degen Chain layer-3, built using Arbitrum Orbit and leveraging Base’s settlement layer.

The chain currently has $4.1 million in total value locked, while the DEGEN token boasts a market capitalization of $326 million.

Street.com examines the persistence of gas fees in blockchain transactions

TheStreet.com, a popular news publisher, has recently delved into the reasons behind the continued existence of gas fees in cryptocurrency transactions.

Despite the inconvenience of requiring a specific token to pay transaction fees, the concept of gas has become deeply ingrained in the blockchain ecosystem, particularly since the introduction of Ethereum.

The article explains that gas represents the computational power required to execute transactions on a blockchain network, and prices are determined by a developer committee.

While this system has worked well for pricing the limited resources of the Ethereum network, it can be a hassle when dealing with tokens other than ETH.

The problem is exacerbated when using new chains with their own unique gas tokens, as users often need to rely on CEXs to acquire these tokens.

Meta-transactions, introduced in 2019 as a potential solution, allow external parties to execute transfers on behalf of users without requiring them to use ETH directly.

However, this system has not been widely adopted due to its lack of backward compatibility with existing tokens and platforms and the difficulty of implementing it for anything beyond basic token transfers.

The author highlights the need for more user-friendly solutions to address the issue of gas fees in blockchain transactions.

Frontiers Unchained: Exploring Blockchain, DeFi, and Account Abstraction

In the latest episode of Frontiers Unchained, Michael Messele (co-founder and CEO of Etherspot) shares his captivating story of transitioning from traditional finance to the fast-paced world of Web3.

The episode delves into the challenges and insights Michael encountered while embracing blockchain technology, crypto, and DeFi.

Make sure you listen to it closely to catch all the insights.

Start exploring Account Abstraction with Etherspot!

  • Learn more about account abstraction here.
  • Head to our docs and read all about the Etherspot SDK.
  • Skandha  - a  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.

 Is your dApp ready for Account Abstraction? Check it out here: https://eip1271.io/ 

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