Account Abstraction is considered one of the core technologies that brings Ethereum in particular and the entire Crypto industry in general towards Mass Adoption. However, Account Abstraction technology itself is currently facing many problems that need to be resolved. In recent times there have been proposals to further improve Account Abstraction technology.
In this article, everyone will learn about ERC 7555 & ERC 7556 and how it affects the Crypto market.
Market Landscape & Technology Account Abstraction
According to A16Z’s most recent reports titled BIG IDEAS and Hashed’s 2024 Crypto Market Forecast, a lot has been said about the Crypto market gradually moving towards Mass Adoption and the first threshold of this stage is the Bitcoin ETF Spot. approved and approved by the SEC. But to prepare for Mass Adoption, the Crypto market still has a lot of work to do, such as:
- Refreshing the user experience to be simpler, closer and more familiar.
- Protect user information through many technologies including AI.
- Solve the problem of scalability with the trend of Layer 2 – Layer 3 or Appchains.
Among the many factors that the Crypto market must prepare to receive billions of users, user experience is considered one of the most important factors. Up to now, it has been too difficult for new people to install, use, and store Metamask, let alone interact with protocols and DApps on different Blockchains.
Account Abstraction technology was born to solve that problem. We have talked about a lot of things that Account Abstraction can thoroughly solve in the article below. However, Account Abstraction technology itself still has some disadvantages such as:
- More complex in implementation: Integrating Account Abstraction requires major changes in the blockchain’s structure and operations, increasing implementation and maintenance complexity.
- Increase transaction costs: Due to the way it works and the data structure is more complex, transactions using Account Abstraction may incur more transaction fees than regular transactions.
- Security risks: Although Account Abstraction provides great flexibility, it also opens up new security issues. Implementing complex rules on the blockchain can create security vulnerabilities that are not easily detected.
- Reduced compatibility: Major changes in blockchain architecture can cause compatibility issues with existing systems and applications, requiring additional effort to integrate and update.
Most of the problems will lie with developers in how to integrate AA technology seamlessly and securely. But there is a big weakness that users are facing: transaction fees. Users currently have to pay a fairly large amount of fees when using wallets that integrate Account Abstraction technology. To solve this problem, there are currently discussions around ERC 7555 & ERC 7556 in reducing transaction fees.
Overview of ERC 7555 & ERC 7556
What are ERC 7555 & ERC 7556?
ERC 7555 is a proposed standard in the Ethereum system, aims to establish a standardized interface for applications to detect and access user account addresses, especially smart accounts that do not follow the usual standard (not based on Ethereum’s secp256k1 curve ). secp256k1 plays an important role in the Ethereum network when used to generate private and public key pairs, create digital signatures,…
Imagine you have a smartphone app that can unlock and use many different cars. Each car represents a different Ethereum account. ERC 7555 makes it possible for this application to easily find and connect to these cars (accounts), even if they use different locking systems.
ERC 7556 builds on ERC 7555 and allows applications to create and manage Embedded Accounts within a main smart account. This makes managing multiple wallets and accounts easier and more efficient.
Imagine you have a large wallet, with many smaller wallet compartments inside. Each of these small wallet compartments can hold different currencies or different cards. In the case of ERC 7556, the large wallet is your main smart account, and the small wallet compartments represent different embedded accounts. ERC 7556 makes it easy to manage and switch between these wallet compartments.
Thus, ERC 7555 and ERC 7556 provide a convenient and efficient solution for managing multiple accounts and wallets on Ethereum, helping users easily access and use their digital assets.
Benefits of ERC 7555 & ERC 7556
Some of the benefits of ERC 7555 & ERC 7556 include:
- Easy account discovery feature: ERC 7555 makes it easier for applications to detect and access user accounts, especially non-standard smart accounts. This is especially useful in environments with a diversity of account types and configurations.
- Enhance compatibility: By standardizing account traceability, ERC 7555 enhances compatibility between different applications and systems, making it easier for users to use their digital assets across multiple platforms.
- Optimize user experience: Centralizing access to multiple accounts through a single interface makes the user experience smoother and less confusing.
- Flexible management: ERC 7556 allows users to manage multiple embedded wallets within one main smart account. This facilitates personal financial management to become more flexible and convenient.
- Optimize asset management: Users can classify and manage their assets in an optimal arrangement, such as dividing assets by use, risk or asset type.
- High safety and security: With the management of multiple accounts in one system, security and access management become more convenient, helping to increase user security.
- Indirectly wasting gas: Consistency and efficiency in account management can help reduce unnecessary transactions and optimize interactions with the Blockchain, thereby indirectly affecting gas fee savings.
Thus, both ERC 7555 and ERC 7556 bring great benefits in optimizing the management and use of digital assets on Ethereum, from increased compatibility, easy account management, to improving safety and security.
Some projects benefit from ERC 7555 & ERC 7556
For technologies that change and optimize user experience, there will certainly be projects that benefit from positive changes such as:
- zkSync: Is a Layer 2 platform that uses zkRollup technology to solve the scaling problem on Ethereum and in parallel with that, zkSync also researches Account Abstraction technology for projects in its ecosystem to help continue to improve efficiency. performance, user experience.
- CyberConnect: SocialFi is the leading platform in applying Account Abstraction technology with its CyberWallet product to bring a Web2-like experience to Web3 users.
- Argent: A smart wallet based on Ethereum, which is one of the typical wallets applying AA. Argent uses AA to provide a convenient user experience, with the ability to manage accounts and smart contracts in one simple interface.
- StarkWare: The project uses AA in its scaling solutions. StarkWare integrates this technology to improve transaction processing and optimize gas costs.
Summary
ERC 7555 and ERC 7556 both bring new changes to the Crypto market, especially with projects that possess Account Abstraction technology.
