190 total views
Perhaps when it comes to technical keywords in the cryptocurrency market, many people’s first reaction will be boredom. This is partly because of the complexity of the initial information search, partly because these keywords are used to “enchant” projects. However, today’s article will try to simplify a technical concept, so that each reader will then have his or her own perspective on its potential!
If you’re a Twitter follower, you’ve probably seen keywords a lot lately “Account Abstraction (AA)”. This keyword was even mentioned by the founder of Ethereum himself, Vitalik Buterin in a very detailed article.
A doc on a possible path to build on our account abstraction work with ERC-4337 (and ERC-3074 if desired) and add more protocol-enshrined features to make abstraction the default over time.https://t.co/mOHLY62nVN
— vitalik.eth (@VitalikButerin) June 24, 2022
Before going into a very “abstract” concept, we need to ask a question “Why or what exactly do we need Account Abstraction for. It took me 5 days to find the answer to this question, and I found it in a clip shared by Vitalik with the community in October 2020. I will leave the link here!
Specifically, the problem Vitalik shared is summed up in one sentence: “All transactions can be programmed flexibly. HOWEVER, the validation for that transaction to be implemented is not flexible.” The keyword emphasized here is “authentication stage”.
Here, I will temporarily translate as operations with contracts (swap, add liquidity, withdraw money from the pool, …) are always “programmed” flexibly according to user needs, parameters or functions. . HOWEVER, the verification that you are the owner of that wallet is fixed, and contains unnecessary barriers. These barriers include something like the following:
- Nonce Verification: You can understand nonce is the sequence number that the wallet has made, so This value cannot be duplicated. If there is a duplication, there will be a conflict and the transaction cannot be executed as expected.
- ECDSA signature: I don’t go into depth to explain this concept, temporarily you just remember the abbreviation and understand that it is your personal wallet signature. After signing, the transaction is done.
In terms of multi-signature wallets (multisig) and can be easily restored, we have made an article about Social Recovery Wallet. If you are interested in more details, you can click on the link below.
> See more: Social Recovery Wallet – The standard for an “optimal” crypto wallet
Then, to avoid distraction, we return to the main keyword of today’s article. So Why is Account Abstraction suggested for a long time, but now it has become “hot again”?. The reason for this problem could be (a) the network has to focus on handling updates related to The Merge and (b) most of the proposals in the past (such as EIP-86, EIP-2986, etc.) you don’t need to remember these numbers) a few problems arise.
After answering a few why questions, we will come to the details of the concept of AA.
So what is Account Abstraction (AA)?
To put it simply, AA will be the process of “smart contracting” wallet addresses, gas fees, and validation. As such, these individually operated individual wallets will be deployed into contracts, so that they can be flexibly changed depending on the purpose of use.
To understand the difference between a “contract address” and a “EOA personal wallet address” What is it, please read an article I introduce about these two concepts first, and also give you a few concepts to track data on Etherscan.
> See more: Quiz on Etherscan “Know” to no longer “fear”
For those of you who are lazy to read, I can summarize that the wallet address you use to receive money and send money daily is EOA. And contract addresses are liquidity pools, contracts specified when participating in IDO, etc.
As mentioned in the concept section, now wallets will be moved to a new format, suitable for specific needs. So, there will be a new token standard for this asset class, ERC-4337.
To avoid confusion, I will summarize a few types of tokens as follows:
- ERC-20: Token is usually (fungible), this is the common token format that we usually store.
- ERC-721: A unique (non-fungible) token, often used for specific asset classes such as NFT.
- ERC-4626: Token Vault, often used to represent a pool of assets, has the ability to support compounding interest with principal. If you find this strange, please read more in this article.
- ERC-4337: Finally, 4337, which can be roughly understood as a “smart contract Wallet” – with the ability to change transaction operations, gas fees and authentication in a variety of ways depending on needs.
Some problems arise
First is authentication stage. Currently, if an EOA wallet sets up an ERC-4337 contract wallet, and then changes the key (password) of this newly created wallet, the problem arises. The old password of the ERC-4337 wallet is still valid during the authentication process in parallel with the new password.
The second is gas fee for this type of wallet is not optimized. In his article, Vitalik shared that ERC-4337 costs about 31000 gas for an operation, while a normal wallet only costs 21000 gas. Thus, in terms of efficiency, the contract wallet costs 1.47 times more than the regular wallet.
Roadmap – Where are we?
Currently, it can be seen that the limitations of ERC-4337 are quite a lot, so the team is having to overcome these limitations in the short term.
In the medium term, the team’s plan is to add a Verkle Tree to manage authentication. At the same time, it continues to reduce gas costs, while supporting port conversion from EOA to ERC-4337 format. Also, if successfully setup on L1 mainnet, this solution is planned to be universal on L2 ecosystems.
The final route is “default” for this type of ERC-4337 wallet. This means, the goal will be to establish wallets that can easily change keys and gas fees depending on the needs of users.
Social recovery wallet: This paragraph you can read about “Social Recovery Wallet” that I shared in the “Why?” section. This type of implementation will suit DAO organizations who want to decentralize control of wallets with multiple signatures. In addition, the decentralization of signatures also helps to reduce security risks, loss or disclosure of keys.
Mixer – (eg Tornado Cash): This is a fairly sensitive keyword in recent times when Tornado is also affected by regulatory authorities in the US. However, putting this aspect aside, technically, the ERC-4337 is also a powerful support tool for this type of mixer product, helping to secure information for users.
If you are more interested in the application of Account Abstraction, you can read more deeply in this article!
> See more: Account Abstraction – When crypto wallet and smart contract merge into one
Account Abstraction can be the solution to complications or unnecessary mistakes, such as the case between Wintermutes and Optimism. I will briefly summarize this case below.
Accordingly, the Wintermutes team has set up a multisig wallet on the Ethereum Mainnet. However, the multisig wallet address when initialized on the Mainnet will absolutely different multisig wallet address when initialized on another EVM compatible chain (in this case, Optimism). It was this difference that resulted in Wintermutes’ 20 million OP loss afterwards.
You can test yourself creating a multisig wallet with Gnosis Safe, you will see that even though you use 2 identical original EOA addresses, when you create a multisig wallet in 2 different chains, you will see that this multisig wallet address has 2 addresses. just completely different.
> See more: Evaluation of Gnosis Safe – Project on asset management successfully raised 100 million USD in July
So we’ve gone through some notable information around the Account Abstraction keyword. If you find these topics interesting, you can join the discussion with us in the group Fomo Sapiens. Oh, by the way, I also created a multisig wallet for Fomo Sapiens to experience, if you find the above content interesting and want to donate to us, you can send it to this ETH address!
Remember this is multisig wallet and Only valid on Ethereum mainnet stop it! If you send it to another chain, it will dissolve into nothing like Wintermutes! And note that only donate when you really want to donate!
Finally, thank you for reading to the end! See you soon in another post!
Maybe you are interested:
#Account #Abstraction #Simple #explanation #abstract #keyword #Ethereum #ecosystem