Everything About Account Abstraction: ETH staking surge, Rhinestone’s ModuleKit, Cointelegraph’s AA guide, BlockPI’s bundler service, Future of Fintech, ETHGlobal Superhack best projects

Everything About Account Abstraction: ETH staking surge, Rhinestone’s ModuleKit, Cointelegraph’s AA guide, BlockPI’s bundler service, Future of Fintech, ETHGlobal Superhack best projects

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August 30, 2023

We are welcoming you to our weekly digest! Here we discuss the latest trends and advancements in account abstraction, as well as bring some insights from Etherspot's kitchen.

Please fasten your belts!

Cointelegraph published a comprehensive guide on Account Abstraction

Cointelegraph has recently released a technical guide focusing on Ethereum’s innovative approach to account management: account abstraction, as defined by the ERC-4337 standard.

This publication offers an in-depth analysis of those deeply involved in the blockchain and cryptocurrency sectors. It delves into the mechanics of transitioning from the conventional externally owned accounts (EOAs) to a more advanced system where smart contracts manage assets.

Of particular note is the guide’s exploration of insights from Ethereum’s co-founder, Vitalik Buterin. It details his rationale behind supporting account abstraction and its potential ramifications for the Ethereum blockchain’s architecture and operability.

For blockchain developers, cryptocurrency analysts, and other technical stakeholders, Cointelegraph’s guide serves as a comprehensive resource, explaining the complexities of the ERC-4337 standard and its role in the evolution of the Ethereum ecosystem.

Rhinestone’s ModuleKit: First developer tool for building smart account modules

Rhinestone has unveiled the alpha version of ModuleKit, a developer framework designed to streamline the process of building, testing, and deploying smart account modules.

With ModuleKit, developers can:

  • Construct smart account modules with interfaces for Validators, Executors, Recovery modules, and Hooks.
  • Conduct unit and integration tests using dedicated helper libraries.
  • Deploy and register modules on the Module Registry.

Modules are smart contracts that enhance smart account functionalities. They can alter the account’s signing mechanism, introduce innovative recovery methods, or modify transaction execution. However, building a module currently poses challenges, requiring developers to understand specific accounts and the intricacies of ERC-4337.

ModuleKit aims to simplify this process. It offers a single interface for each module type and abstracts testing complexities. Developers can focus solely on crafting exceptional modules without delving deep into account specifics or ERC-4337 intricacies.

In the future, ModuleKit will also facilitate easy module deployment and registration on the Module Registry, integrating them into the Rhinestone marketplace.

Blocto CEO titles Account Abstraction as the future of Fintech

Hsuan Lee, the co-founder and CEO of Blocto, a cross-chain wallet compatible with the ERC-4337 standard, recently shared his insights on the transformative potential of account abstraction in the fintech industry.

In a detailed piece, Lee highlighted the challenges faced by the traditional financial sector, emphasizing its centralized nature, high transaction costs, and slow settlement times.

Lee compared these challenges with the promises of web3, which offers a decentralized, efficient, and cost-effective alternative. However, he acknowledged the hurdles web3 faces, particularly its complex usability and cybersecurity concerns.

Within this context, account abstraction, aiming to simplify blockchain accounts and make them more programmable, emerges as a potential game-changer.

The article delves deep into the Ethereum standard ERC-4337. Lee emphasized its ability to revolutionize user interaction with digital assets, compacting complex access routes into a single, user-friendly login.

He also touched upon the enhanced security features offered by account abstraction, including multi-signature security, social recovery, and custom access controls.

Lee’s vision for the future of Fintech is one where AA plays a pivotal role, fostering a transparent, democratic, and fortified financial ecosystem. He believes that as Web3 and blockchain technology become more integrated into our daily lives, the boundaries of account abstraction will continue to expand, unlocking its full potential.

ETHGlobal Superhack concludes with top 10 projects

ETHGlobal Superhack took place on August 19th, spotlighting groundbreaking projects from the Ethereum ecosystem.

Among the top 10 winners, account abstraction emerged as a central theme, reflecting its growing significance in the blockchain space:

  • Shadow Rollup stood out, offering a rollup but with added rules to record smart contract gas usage on-chain, enabling trustless access to data.
  • Clink Safe introduced a non-custodial wallet, simplifying digital asset transfers with the link itself acting as the smart contract wallet.
  • Refer combined proof of humanness with Worldcoin and account abstraction with Safe & Pimlico, presenting a sybil-resistant referral protocol.

With backing from 12 renowned projects, including Optimism, Base, and Worldcoin, the event boasted a substantial prize pool of $175,000.

Ethereum staking surges as DeFi assets decline

Despite a series of centralized crypto exchange failures, decentralized finance has seen a consistent decrease in locked assets.

Data from DefiLlama reveals that the value locked in DeFi protocols has plummeted to less than $38 billion from its peak of $178 billion in November 2021. Of this, nearly $21.8 billion is in Ethereum protocols.

This decline is even more pronounced when considering the aftermath of the FTX exchange collapse in 2022, which saw DeFi assets drop to a two-year low.

However, liquid staking protocols like Lido have experienced growth, with Lido’s TVL doubling to $13.95 billion post-FTX’s downfall.

Coinbase’s staking service, launched in September 2022, has garnered an additional $2.1 billion in ETH, bringing the total assets in such services to $20.2 billion.

Liquid staking allows investors to earn yields while maintaining trading liquidity, presenting a more appealing option than lending protocols like Aave. As a result, Aave’s TVL has decreased by 21% in the last month, standing at $4.5 billion.

BlockPI launches ERC4337 bundler service

BlockPI, a Web3 native project, has unveiled its Bundler Service for ERC4337 Account Abstraction on Base Mainnet, Polygon Mainnet, and Mumbai blockchains.

The service offers users flexibility with multiple open-source Bundler clients (e.g. Skandha, Voltaire, Stackup Bundler, Alto bundler) and an ‘Auto’ function for optimal bundler selection. Emphasizing stability, BlockPI optimized bundler clients for each blockchain, ensuring enhanced performance.

Their open-source UserOperation Indexer, integrated into the network, significantly improves the QPS rate.

As Account Abstraction evolves, BlockPI seeks collaborations with ERC-4337 enthusiasts and plans to expand its services.

💥BlockPi will be hosting an exclusive Account Abstraction Round Table Discussion on August 30 at 3 PM UTC with Etherspot, Moonshot Commons, Candide, Pimlico, StackUp, and Ethereum Foundation.

👉 Join now -> https://link3.to/e/Ql1BUS 👈

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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