Everything about Account Abstraction: Ethereum’s record, Coinbase Wallet’s gas-free Polygon, 10th ERC4337 call, Alchemy & Hacken discuss AA, Magic secures $52M

Everything about Account Abstraction: Ethereum’s record, Coinbase Wallet’s gas-free Polygon, 10th ERC4337 call, Alchemy & Hacken discuss AA, Magic secures $52M

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June 7, 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!

ERC4337 Core Devs call — Meeting #10

In the latest update from the 10th call of the ERC-4337 group, several key topics were discussed. Here are the notable points:

Fan-out issue progress

The team provided a status update on the fan-out issue that was previously discussed.

Encouraging progress has been made, and the team is actively working on implementing the proposed solution.

MsgId decision for Gossipsub messages

The team has made a crucial decision regarding the msgId for Gossipsub messages. They have agreed to utilize the UserOp hash as the msgId, ensuring a unique identifier across all topics.

This decision is particularly significant when a bundler supports multiple mempools. The p2p specification will be updated accordingly to reflect this decision.

Python’s lack of libp2p support

The group addressed the issue of Python’s lack of support for libp2p and presented three available options to resolve it:

  1. Implementing the p2p interface in a separate language and running it as a sidecar.
  2. Creating a Python wrapper for the Rust libp2p implementation to enable integration.
  3. Reviving the py-libp2p project and updating the code to align with the latest libp2p specification.

Next steps and collaboration

A call with Protocol Labs is scheduled for next week to determine the best way forward.

This collaboration aims to discuss and decide on the most suitable approach regarding Python’s support for libp2p.

You can access the meeting recording here.

Ethereum nears Visa in processed transaction volume

Ethereum has demonstrated its growing dominance in the financial market once again. The network processed $3.01 trillion in transactions, just slightly behind Visa’s $3.08 trillion, according to recent data from Coingraph.

Despite being younger than traditional payment giants, Ethereum’s rise highlights the mainstream adoption of blockchain technology, which has often been associated with illicit activities.

As the second-largest blockchain with a market capitalization of $227.8 billion, Ethereum powers various financial technology solutions such as decentralized finance (DeFi), staking, lending, and flash loans.

Its versatility and room for further development give it an edge over traditional financial systems.

According to data from Etherscan, the number of Ethereum transactions per day reached 968,996 on May 28 and an all-time high of 1,932,711 transactions on December 9, 2022.

Etherspot Partnered with QSign to revolutionize cross-chain interoperability

​QSign, a revolutionary cross-chain solution developed by the Qredo team, enables fluid communication between various blockchains, providing developers with a robust and secure infrastructure for building cross-chain decentralized applications (dApps). The integration of QSign with Etherspot, Account Abstraction SDK, will empower developers to create more interconnected, multichain applications and provide users with a smoother, more unified experience across the blockchain ecosystem.

Coinbase Wallet enables gas-free USDC transactions on Polygon (MATIC)

In an official announcement, Coinbase Wallet revealed that holders of USDC on Polygon can now send their assets without paying any gas fees.

This new option significantly simplifies cross-border transfers and enhances the overall usability of USD Coin (USDC) operations.

The development has garnered positive feedback from Coinbase’s Twitter followers, with some curious if the offering will expand to other networks like Solana (SOL), Near Protocol (NEAR), or Avalanche (AVAX).

This feature is introduced by implementing EIP 4337, also known as “Account Abstraction,” in EVM-compatible blockchains. EIP 4337, a highly anticipated Ethereum (ETH) upgrade, allows developers to subsidize gas fees for transfers from specific accounts.

Polygon has also achieved notable milestones in Q2, 2023, including a partnership with global telecommunications giant Deutsche Telekom, which has joined the Polygon Network as a proof-of-stake validator. Earlier this year, the company also collaborated with Mastercard to launch an incubator for Web3-focused digital artists.

ERC-4337 overview by Alchemy

Blockchain infrastructure provider Alchemy has released an article introducing ERC-4337’s Account Abstraction and its core concepts.

Account Abstraction allows users to utilize smart contract wallets (SCWs) instead of Externally Owned Accounts (EOAs) as primary accounts, offering numerous benefits.

ERC-4337 operates on existing blockchains like Ethereum without requiring significant infrastructure changes.

Key concepts include UserOperation, Bundler, EntryPoint, Paymaster, and Aggregator. Bundlers bundle UserOperations into transactions while EntryPoint verifies and executes them. Paymasters handle gas payment policies, allowing flexibility in gas payments. Aggregators reduce call data costs by validating aggregated signatures.

ERC-4337 builds upon EIP-2938 and EIP-3074, introducing an alternative mempool without altering the consensus layer.

Alchemy’s article aims to educate the blockchain community on these innovative concepts, paving the way for improved account management and expanded possibilities for decentralized applications.

Hacken’s AA overview

Hacken has released a comprehensive overview of Account Abstraction, highlighting the revolutionary impact of ERC-4337 in account management.

ERC-4337 transforms traditional accounts into “smart wallets,” improving functionality, security, and user experience. It enables multiple signature requirements, simplifies account recovery, and offers intelligent fee management, including sponsored transactions and ERC-20 payment options.

While ERC-4337 doesn’t achieve complete account abstraction, it acts as a transaction relayer without consensus layer changes.

The article explains its technical workings and features, emphasizing the potential for seamless user experience, quantum-resistant cryptography, and upgradeability.

Tom Teman on AA Proposal at Israel Crypto Conference

Tom Teman, a prominent product manager and developer expert at the Ethereum Foundation, delivered a compelling speech on account abstraction at the Israel Crypto Conference on May 30.

Highlighting the challenges associated with externally owned accounts (EOAs), Teman emphasized the need for improved security and control over user funds.

He introduced ERC4337, a groundbreaking proposal for account abstraction on Ethereum, which aims to separate user accounts from smart contract accounts.

The proposal also enables smart contracts to cover gas fees on behalf of users, enhancing convenience and addressing the centralization concerns associated with EOS.

Teman’s speech received enthusiastic applause from the conference attendees.

Watch the full presentation here.

Web3 developer Magic raises $52M

San Francisco-based wallet-as-a-service provider Magic has raised $52 million in a funding round led by PayPal Ventures, with Cherubic, Synchrony, KX, Northzone, and Volt Capital participating.

This brings Magic’s total funds raised to over $80 million. The company’s software is used by retail, music, fashion, and gaming brands, and the funding will be used to expand its adoption and functionality in the European Union and Asia-Pacific region.

Magic’s software development kit enables vendors to create wallets using existing logins and offers features such as authentication, fiat on-ramps, NFT minting, and checkout.

The company claims to comply with various regulations and has generated over 20 million unique wallets to date, with over 130,000 developers using its SDK.

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