Everything About Account Abstraction: Skandha ERC-4337 bundler, Starknet’s EVM compatibility, AA concerns by Ambire Wallet CEO, Binance Labs’ Web3 investments

Everything About Account Abstraction: Skandha ERC-4337 bundler, Starknet’s EVM compatibility, AA concerns by Ambire Wallet CEO, Binance Labs’ Web3 investments

Written by


June 28, 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!

Etherspot introduces Skandha bundler

Etherspot has unveiled Skandha, an innovative ERC-4337 bundler service that aims to optimize transaction processing on the Ethereum network. Acting as an intermediary, the bundler service collects multiple UserOperations (transactions) and combines them into a single transaction, reducing gas fees and alleviating blockchain congestion.

Skandha, a modular and developer-friendly TypeScript implementation, adheres to the ERC-4337 standard, offering various benefits to Ethereum and EVM-compatible chain users and developers.

Bundlers play a crucial role in the Ethereum ecosystem by enabling access to smart contract wallets without relying on centralized relayers. Skandha, currently the top Account Abstraction service on GitHub, offers decentralized solutions, gas cost savings, and censorship resistance.

Currently, Etherspot’s bundler is live on four testnets and four mainnets, including Ethereum, Polygon, Optimism, and Arbitrum. Skandha is compatible with Nethermind nodes, enabling its use on networks like Gnosis and Fuse. It supports Layer 2 chains and can operate across multiple networks in a single instance.

Etherspot is actively researching different implementations to enhance Skandha’s capabilities, aiming for p2p functionality to enable true decentralization.

To run the Skandha bundler, users have two options:

  1. using the source code;
  2. utilizing a Docker image.

Detailed instructions can be found on Etherspot’s GitHub repository or Skandha docs.

Starknet’s Kakarot testnet bridges gap to EVM compatibility

Starknet, a decentralized zero-knowledge layer-2 scaling solution for Ethereum, has taken a significant step towards achieving Ethereum Virtual Machine (EVM) compatibility with the launch of its Kakarot zkEVM testnet.

Intending to enable developers to write in any EVM-compatible language, Starknet’s Kakarot testnet is set to be available for public use in August this year.

It utilizes Cairo as its native language and leverages STARK proofs for transparent and secure transactions and blocks. By leveraging its native language, Cairo, Starknet simplifies the process of code development, review, and maintenance, providing a user-friendly experience for developers.

Despite being recognized as a prominent Zero Knowledge roll-up within the Ethereum ecosystem, Starknet remains committed to achieving EVM compatibility. The concept of the zkEVM was introduced at a Starkware conference in July previous year, and development work began in Lisbon, Portugal, a few months later. The recent funding round garnered support from notable figures such as ETH co-founder Vitalik Buterin, Ledger co-founder Nicholas Bacca, and Starkware.

Starknet has gained popularity among developers seeking to scale decentralized applications, transactions, and computations on the Ethereum network. Additionally, the establishment of the Starknet Foundation, led by newly appointed CEO Diego Oliva, is expected to drive ecosystem expansion and contribute to ongoing decentralization initiatives.

CEO of Ambire Wallet Highlights Challenges and Solutions for dApps

Ivo Georgiev, Ambire Wallet’s CEO, recently discussed on Twitter important issues related to decentralized applications (dApps) and proposed several solutions.

He emphasized that many dApps still use smart accounts instead of signature verification, leading to compatibility issues. Ivo suggested that raising awareness about EIP-1271 and merging it into ‘ethers.js’ would greatly benefit developers.

He also acknowledged the efforts of certain dApps in addressing this problem. Some of them are:

  • Snapshot Labs;
  • OpenSea;
  • Crew3xyz.

To simplify universal signature verification, Ivo recommended using a library developed by Ambire Wallet called signature-validator. Next, he reviewed the detrimental practice of using “isContract()” checks to prevent reentrancy. According to the CEO, it not only breaks support for account abstraction and smart accounts but also hampers the composability of the Ethereum ecosystem. He suggested alternative methods, such as the check-effects-interactions pattern or reentrancy guards, for preventing reentrancy attacks. Moreover, he pointed out that relying solely on “isContract()” checks is unreliable, as the contract code is empty during constructor execution.

Finally, Ivo provided actionable steps for dApp developers, including implementing the signature-validator library to support smart account signatures and avoiding the use of “isContract()” or “msg.sender == tx.origin” to block contract calls.

He emphasized the importance of addressing these issues to enhance the functionality and security of dApps on the Ethereum network.

Banana on Paymasters in Account Abstraction

Banana, a smart contract wallet SDK developer, highlights the power of paymasters in Account Abstraction through a Twitter thread.

Paymasters, game-changing smart contracts, enable others to pay gas fees, transforming the blockchain experience. Users can dive into the ecosystem without worrying about acquiring ETH for gas fees, while dApps can offer sponsored transactions, enhancing user engagement.

These contracts break free from the ETH-only paradigm, accepting alternative payment options like USDC and attracting a wider audience. They also provide enhanced privacy, allowing users to withdraw assets from mixers or conduct transactions while charging gas fees to separate accounts.

The entry point ensures operation integrity by rigorously validating wallets and paymasters. Seamless integration of paymasters and gas payments covers fees, providing smooth transactions. A reputation system counters malicious paymasters, and staking ETH adds an extra layer of security against threats like Sybil attacks.

Banana SDK’s exploration of paymasters showcases their potential to offer users and developers convenience, flexibility, security, and reliability, revolutionizing Account Abstraction.

Binance Labs invests in five incubation projects, empowering Web3 innovation

Binance Labs, the venture capital and incubation arm of Binance, has announced investments in five promising projects as part of its Incubation Program’s fifth season. The program aims to empower innovative blockchain projects across various Web3 sectors, including DeFi, infrastructure, tooling, and middleware.

Out of over 900 applicants, less than 2% were selected for the program, receiving a tailored curriculum, exclusive resources, and mentorship from industry leaders.

The selected projects include:

  1. Bracket Labs, building leveraged structured products on-chain;
  2. DappOS, developing an operating protocol for user-friendly Web3 applications;
  3. Kryptoskatt, simplifying Web3 finance with comprehensive solutions;
  4. Mind Network, a full-encryption network for secure data storage and computation;
  5. zkPass, a privacy-preserving decentralized identity verification solution.

What interests us the most is the appearance of DappOS in this list. The main objective of it is to make dApps as user-friendly as mobile apps by introducing a Web3 operating protocol. By leveraging account abstraction and an executive network, DappOS enables seamless integration of its solution into dApps, allowing users to enjoy intuitive interactions across different blockchain networks.

These projects presented their pitches at the Build The Block metaverse competition and secured funding from Binance Labs. The investments aim to support the advancement of these projects and their positive impact on the broader Web3 ecosystem.

Subscribe to Etherspot’s Everything About Account Abstraction Newsletter!

Start exploring Account Abstraction with Etherspot!

Listen to the latest Inside Crypto episode – “Wallet and Abstraction Technologies: The Future of Cryptocurrency” with Etherspot’s CEO Michael Messele & Crian Padayachee.

 Is your dApp ready for Account Abstraction? Check it out here: https://eip1271.io/ 

Get In Touch:

Website | Twitter | Discord | Github | Telegram

Powered by Etherspot

BUIDLer React Component | TransactionKit | Pillar Wallet | AirdropMe