Everything About Account Abstraction: Ethereum eyes $1B profit, Chain abstraction’s future, Skandha Bundler update, Aarc’s OpenAuth Kit, Alchemy’s React Hooks, XION’s chain abstraction

Everything About Account Abstraction: Ethereum eyes $1B profit, Chain abstraction’s future, Skandha Bundler update, Aarc’s OpenAuth Kit, Alchemy’s React Hooks, XION’s chain abstraction

Written by


May 1, 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’s Skandha bundler supports notifications via WebSocket

Etherspot’s latest update brings exciting features to developers utilizing ERC-4337 smart accounts. With the newly added support of receiving notifications via WebSocket, developers can now seamlessly monitor pending and submitted user operations using the skandha_subscribe and skandha_unsubscribe endpoints. These additions enable real-time tracking of userops throughout their lifecycle, from being recently placed in the mempool to their successful addition to a block. This enhanced functionality opens up new possibilities for dApps leveraging Skandha’s bundler capabilities. Dive into the details here.

Ethereum on track to hit $1 billion in annual profits

Ethereum is on the cusp of achieving $1 billion in annualized profits, according to the DeFi Report.

The network’s impressive performance in the first quarter of 2024, with a staggering $365 million in income generated during the period, has set the stage for this remarkable feat.

This substantial revenue growth, which saw a 155% year-on-year increase and an 80% bump from the previous quarter, is largely attributed to the surge in DeFi activity on the Ethereum network.

The heightened network activity resulted in an average of over 1.15 million daily transactions in 2024. It surpassed the figures from the previous year and approached the ATH recorded in 2021.

Also, Ethereum’s transition to a PoS consensus mechanism in September 2022 has significantly impacted its profitability since it reduced token incentives paid to validators by approximately 80%.

XION introduces chain abstraction service

XION, the first L1 blockchain purpose-built for consumer adoption, has unveiled its chain abstraction service.

By combining XION’s user-friendly interface and seamless adaptability with cross-chain liquidity, the platform seeks to remove the complexities associated with traditional blockchain interactions.

The chain abstraction service allows users to interact with XION applications across various devices (desktop and mobile) using familiar methods such as email.

This approach eliminates the need for users to understand the underlying technical framework, so the platform aims to be similar to conventional web platforms without the drawbacks of gas fees.

Burnt Banksy, a key associate of XION, likens the platform’s functionality to the internet and emphasizes that users should not be required to comprehend the intricacies of the applications they use. Instead, the focus is on providing a seamless and intuitive experience.

Previously, cross-chain interactions posed significant challenges for users, often leading to fragmentation across different ecosystems.

Exploring the potential and challenges of chain abstraction in the blockchain industry

Rui, a prominent researcher in account abstraction space, has recently taken to X to emphasize the critical need for simplifying infrastructure complexities to usher in the era of chain abstraction.

According to Rui, this approach allows users to interact with various blockchains seamlessly, without the need for extensive technical knowledge.

She emphasizes the importance of simplifying infrastructure complexity for users, which includes having one account, one signature, and one gas fee for all cross-chain operations.

However, she also acknowledges the challenges that persist:

  • account state synchronization
  • signature aggregation
  • atomic execution
  • delayed finality

Several key players in the blockchain industry are actively working towards achieving chain abstraction: Safe, Clave, Flashbots, LayerZero, Union.

Particle Network, for example, has developed a layer 1 solution using the Cosmos SDK, which allows users to utilize any token or $PARTI as gas for transactions across EVM, Solana, and BTC.

Light.So offers a 4337-compatible cross-chain smart contract wallet supporting state synchronization and signature aggregation, while the above mentioned Burnt Xion is a general chain abstraction protocol with a meta account design that enables agnostic signature, parameterized fee layer, and state machine updates.

NEAR Protocol integrates an MPC layer to address cross-chain transactions.

At the same time, Etherspot recently joined the Frontier Research CAKE (Chain Abstraction Key Elements) working group along with Consensys, Arbitrum, EigenLayer and Blocknative to establish new standards for chain interoperability.

Despite the progress made, challenges remain in achieving a fully realized chain abstraction future.

Aarc introduces OpenAuth Kit for unified user experience across fragmented Web3 ecosystem

Aarc, a modular rollup platform, is taking a significant step towards consolidating the fragmented Web3 ecosystem with the introduction of its OpenAuth Kit.

It will provide users with a seamless and unified experience by bringing together user account addresses across various platforms and services.

The OpenAuth Kit, developed in collaboration with Lit Protocol, enables users to create interoperable addresses using any social authorization, which is secured by multi-party computation.

This means that users can now create and manage their Web3 identities using familiar social logins. As a result there will be no need for multiple, fragmented accounts.

One of the key features of OpenAuth is the ability to create consistent user addresses across any authentication method, including single sign-on, which allows users to re-use their existing Lit Protocol addresses across different dapps.

Additionally, OpenAuth offers session keys for zero-signature clicks to make transactions more convenient for users.

The kit also provides direct accessibility via WalletConnect and includes key rotation functionality to enhance security.

Furthermore, OpenAuth enables users to effortlessly create and deploy consistent address smart accounts across various providers, such as Safe, Etherspot, Alchemy, Biconomy, and Zerodev.

Alchemy launches React Hooks

Alchemy has announced the release of React Hooks for its Account Kit, which makes it easier for developers to integrate and use Embedded Accounts in their Web3 applications.

This update simplifies the following processes:

  • authenticating users
  • sending userOps
  • adding passkeys to accounts

React Hooks, a primitive in the React JavaScript library, enables developers to manage state from their frontend more efficiently and reduces the amount of code needed to add Embedded Accounts to their applications.

By leveraging these hooks, developers can create seamless end-user sessions and transactions, enhancing the overall user experience.

Ancient8 Chain revolutionizes Web3 gaming with robust account abstraction ecosystem

Ancient8 Chain, a Layer 2 Web3 gaming infrastructure, enhances blockchain gaming by partnering with Halliday, Particle Network, Thirdweb, Etherspot, and Openfort.

This helps them better onboarding and gaming experiences and simplify user interactions with a set of features:

  • SSO
  • automated transactions
  • cross-device compatibility

Gamers benefit from faster onboarding and more playtime, while developers can attract users with appealing, engaging games.

Check out Etherspot’s recent article on Hackernoon titled “How Etherspot Redefines The Way We Build Ethereum Smart Contracts”.

Here you can find out how Etherspot leverages ERC-4337 account abstraction to redefine Ethereum smart contracts and wallets. For example, Arka Paymaster, Skandha Bundler, and TransactionKit products facilitate adoption, and enable improved UX, and lower barriers to entry.

While full account abstraction isn’t achieved yet, ERC-4337 introduces significant enhancements for developers and end-users alike.

Subscribe to Etherspot’s Everything About Account Abstraction Newsletter!

Get In Touch:

Website | XDiscord | Github | Telegram | Developer Portal

Powered by Etherspot

TransactionKit | Pillar Wallet | Case Studies