Everything About Account Abstraction: Geth’s ETH share drops, Dencun lowers costs, Ruby Protocol presale, AA Core Devs & ERC-6900 Community Calls

Everything About Account Abstraction: Geth’s ETH share drops, Dencun lowers costs, Ruby Protocol presale, AA Core Devs & ERC-6900 Community Calls

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January 31, 2024

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

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Geth’s decline in the Ethereum market raises centralization concerns

Geth Ethereum network share falls 5% amid ‘black swan event’ fears. Geth’s dominance in Ethereum’s network is risky, as a bug could cause significant Ether losses for validators. Its market share dropped to 78.8% from 84% due to concerns over network diversity and centralization risks.

Geth is essential for Ethereum transactions and smart contracts, but its widespread use among validators raises centralization issues. Ethereum decentralization advocates, including ETHStaker’s “Superphiz,” warn that a Geth bug could erase over 80% of staked Ether.

Lachlan Feeney, CEO of Labrys, highlights the risks for Ethereum validators, noting staked ETH isn’t risk-free and a critical Geth bug could halt the chain. This could lead to a significant loss of staked Ether due to an ‘inactivity leak.’

Feeney suggests validators could lose up to 90% of their stake in 40 days if a majority client bug occurs. However, he mentions a brief opportunity for validators to limit losses.

Meanwhile, Nethermind, another execution client, saw its share increase to 14% after fixing a critical bug. Coinbase, a major validator, plans to shift to a multi-client infrastructure, acknowledging the growing need for diversification in Ethereum’s client ecosystem.

Dencun upgrade promises reduced rollup costs

The Ethereum ecosystem anticipates significantly lower gas fees and faster transaction speeds for layer-2 rollups with the upcoming Dencun upgrade, tested on the Goerli testnet in January 2024.

This upgrade, introducing EIP-4844, aims to enhance scalability through proto-danksharding and blob transactions. Despite initial delays due to a bug in the Prysm client, the upgrade proceeded after quick rectification.

Proto-danksharding is a major step towards improved scalability, offering cost reductions of 80%-90% by using compressed data blobs instead of calldata. This change will allow more efficient storage on Ethereum’s layer 1, making transaction data temporarily available and more affordable.

Following Goerli, the Sepolia and Holesky testnets are next for the Dencun upgrade, a prerequisite for Ethereum’s mainnet upgrade. Dencun’s storage improvements promise more block space and lower costs to layer-2 solutions.

Data previously stored indefinitely on-chain will now be discarded after two weeks, enhancing scalability without compromising decentralization.

The upgrade is expected to reduce rollup transaction costs by up to ten times, benefiting rollups by enhancing their economic viability and scalability.

Additionally, protocols like Avail address the increasing demand for block space, offering alternatives like zero-knowledge Ethereum Virtual Machine Validium, which reduces transaction fees by 90%.

Ruby Protocol launches token presale after $7.3m fundraise

Ruby Protocol, after securing $7.3 million in a funding round, is launching its native token, $RUBY. The protocol focuses on intent-centric, interoperable, and privacy-preserving infrastructure for Web3.

Moreover, it has a unique approach to account abstraction, specifically through Ruby One, a crypto PMC wallet. This wallet supports Web2 account login and social recovery.

Ruby Protocol aims to innovate in blockchain with a focus on user privacy and cross-chain, accessible applications. It integrates with LayerZero for enhanced scalability and user experience.

Its whitelisting campaign received substantial interest, leading to a Whitelist event and subsequent sales rounds.

ERC-4337 Core Devs call #26

This time, a crucial point of discussion was the definition of schemas for alternative models. The consensus was clear: no schema definition will be attempted. The focus is currently on releasing version 0.7, post which standardization aspects will be considered, particularly around security definitions and managing the reputation of each alt mol.

The team delved into the complexities surrounding lib P2P message IDs in the gossip protocol, particularly the challenges posed by invalid compression.

The devs emphasized the need for a system that supports backward compatibility and effectively handles both compressed and uncompressed data.

On the peer-to-peer front, the bundler team shared their compatibility with a version from a month ago, awaiting further merges to align with the latest version.

The team also discussed the need for unique message IDs across multiple topics within the protocol, highlighting ongoing efforts to streamline this process.

A significant part of the conversation was dedicated to discussing the challenges in transitioning from version 0.7 to future versions.

Please find the full video recording here.

ERC-6900 Community Call #5

The meeting centered on the implications of the recent updates to the ERC-4337 contracts.

A notable highlight was the in-depth analysis of the 6900 spec update v0.7. This update focuses on maintaining robust security protocols while improving operational efficiency.

Circle shared valuable insights into their work with the standard. Their focus on gas optimization in semi-modular accounts offers a glimpse into the practical applications and challenges in implementing these standards.

Another significant discussion point was the behavior of hooks affecting account state, emphasized by a detailed pull request from Adam Alchemy. This aspect is crucial in understanding how modifications in the standard can impact the broader blockchain ecosystem.

The community eagerly anticipates the next meeting, scheduled for February 22nd. For those who missed the call, a recording and a detailed summary are available online.

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