Everything About Account Abstraction: Flare & Etherspot, ERC-4337 flaw found, Circle’s Web3 platform, Mastercard’s collaborations

Everything About Account Abstraction: Flare & Etherspot, ERC-4337 flaw found, Circle’s Web3 platform, Mastercard’s collaborations

Written by


November 1, 2023

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

Please fasten your belts!

Flare and Etherspot form a strategic partnership to enhance dApp usability on Flare Network

Flare, known for its blockchain for data and EVM smart contract platform, announces its partnership with Etherspot, an ERC4337 developer platform. This collaboration will bring Etherspot’s Account Abstraction to Flare Network and include Etherspot’s Skandha and Arka Paymaster services into Flare’s infrastructure.

Account abstraction allows Flare developers to build dApps, giving better user experience, like social recovery, batch signing, seamless on-ramp solutions, and much more.

The partnership between Flare and Etherspot also facilitates developers in onboarding new users. It will bring in the integration of Etherspot’s Arka Paymaster service, enabling gasless transactions on Flare.

Gasless transactions allow Flare users to pay fees in various ways, even without holding FLR tokens. And they won’t have to give up custody of their accounts to do this. Fees can be paid using a compatible ERC-20 token, such as USDC.

Bitget unveils MPC Wallet 2.3 with 2/3 private key sharding

Bitget has initiated a new wallet service using multiparty computation (MPC) to improve security and key handling for users.

Post launching its account abstraction wallet service in July 2023, Bitget has now used MPC for revamping private keys and asset handling.

MPC tech employs a spread-out key creation method that sends multiple key shares to different spots controlled by various parties. This permits a process where the holders of spread-out private key shares need to sign and approve the transaction.

The MPC wallet gives a “mnemonic-free” user experience, removing a long-held industry norm that depended on users storing or remembering mnemonic phrases and private keys.

Assets are now handled using password-based authentication, which Bitget praises for removing the danger of a single-point private key exposure. The exchange mentions that this development aims to reflect the user experience normally seen in traditional Web2 products and services.

On a more technical side, Bitget’s MPC wallet leans on a threshold signature scheme, employs secure “large prime numbers’’ and has a 2/3 threshold setup.

This last feature is made for consumer-level users, bringing in a minimum number for signature approval, requiring just two-thirds of the total key shares to finalize a signature to approve a transaction.

The final key share is safely kept on a backup cloud server, ensuring a raised level of decentralization and security.

The MPC wallet also brings in a reshare mechanism that invalidates key shares on old gadgets when newer gadgets are linked. This strives to remove the danger of key shares possibly being compromised on outdated or forgotten gadgets.

Circle introduces Web3 platform for Web2 developers

Stablecoin creator Circle has launched a new instrument it claims will permit developers to “take away the complexity” of making Web3 applications.

Titled “Smart Contract Platform,” this new tool enables developers to unfold smart contracts using a group of pre-checked code templates and either a console or REST APIs, potentially simplifying the task for traditional Web2 programmers.

Circle also unveiled a Gas Station tool that lets developers cover their users’ gas charges, which they argue could make welcoming users simpler.

Upon deploying smart contracts, developers typically depend on Web3 developer instruments like Truffle or Hardhat to carry out the deployment. When utilizing these instruments, contracts need to be penned in Solidity, a language some conventional programmers might not know well. They also necessitate developers to form and execute blockchain deployment or “migration” scripts, a procedure some Web2 developers are not accustomed to.

According to their documentation, the Circle smart contract platform offers a group of pre-checked templates that can be employed to craft a variety of smart contracts.

For instance, developers can use the templates to craft contracts for non-fungible tokens (NFTs), blockchain loyalty programs, and interactions with Uniswap or other decentralized finance projects or with Circle’s stablecoin contracts.

This suggests a developer can use the platform to avoid crafting an entire Solidity contract from the start, which may simplify the start for Web2 developers in Web3.

Fireblocks and UniPass tackle ERC-4337 vulnerability

Fireblocks and UniPass Wallet have teamed up to solve a vulnerability found in Ethereum’s ERC-4337 account abstraction on the 26th of October.

The issue could let an attacker take over a UniPass Wallet by misusing Ethereum’s account abstraction. Fireblocks explained: in ERC-4337 when an account performs an action, it uses the Entrypoint contract to ensure that only signed transactions are executed.

The vulnerability could let an attacker control UniPass wallets replace the trusted EntryPoint, and then access and empty the wallet funds.

The discovery was crucial to secure users with the ERC-4337 module in their wallets from potential blockchain attacks. Fireblocks, with UniPass, ran a white hat operation to fix this vulnerability.

Mastercard eyes Web3 collaborations with MetaMask and Ledger

Mastercard, the payments behemoth, is delving into possibilities of teaming up with self-custody wallet companies like MetaMask and Ledger, as revealed in a Web3 strategy workshop document sighted by CoinDesk.

Through a presentation, Mastercard explained that a payment card can aid wallet providers in escalating the count of active users and fostering loyalty and additional revenue channels while affording cardholders the ease of spending their crypto balances effortlessly.

Nonetheless, wallet companies encounter substantial resource demands when launching a card in a fresh region, which is where Mastercard and its issuing partners step in. The seasoned, 57-year-old payments tech firm also disclosed it is assessing “new models for global issuance using stablecoin on-chain settlement” and “low-cost speedy chains,” as per the presentation.

Mastercard is set to unveil a series of franchise standards, or guidelines for partner firms, to guarantee consumer safety, price competition, and transaction monitoring prerequisites, as outlined in the presentation.

Deep talk on EIP-4337 mempool in Ethereum dev community

In the “4337 Mafia” Telegram group (consisting mostly of the Ethereum developers) there are rich discussions on Ethereum Improvement Proposal (EIP) 4337 mempool dynamics.

Conversation going deep into bundler competition, value leakage, and decentralization of relay systems. EIP-4337’s public mempool and fitting with intent-based systems being strongly debated, spotlighting complex interaction between user-aligned and validator-aligned relays.

As Ethereum continues to grow, such community-driven discussions are crucial for refining protocols, since they adhere to the spirit of decentralization while managing transactions efficiently.

Read the full conversation here.

🐞This digest is sponsored by TransactionKit

Make your protocol cutting-edge with TX Kit! Plug-and-play React components, transaction batching, cross-chain compatibility, gasless transactions, and complete UI design freedom. Fast and simple Web3 development is possible.

Test it out!

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/ 

Subscribe to Etherspot’s Everything About Account Abstraction Newsletter!

Get In Touch:

Website | Twitter | Discord | Github | Telegram

Powered by Etherspot

TransactionKit | BUIDLer React Component | Pillar Wallet | AirdropMe