With Account Abstraction technology, the Crypto market in general and DeFi in particular are facing the Mass Adoption scene. So can Account Abstraction technology really do that? Whether Account Abstraction is a technology drawing cake, everyone will find out in the article below. Let’s learn together how Account Abstraction brings Crypto to Mass Adoption.
To better understand Account Abstraction, people can refer to some of the articles below:
- What is Account Abstraction? Mass Adoption Blockchain Vision
Historical Development of Account Abstraction
In fact, Account Abstraction was researched, developed and started to be mentioned in 2016 – 2017 by Ethereum Founder Vitalik Buterin. At that time, when Vitalik or the developers on the Ethereum network mentioned Account Abstraction as an aspiration, passion, and strong desire to at some point be able to bring AA technology to the Ethereum network.
Account Abstraction technology is not only applied in Blockchain but also in Web2 technology companies with the goal of reducing system complexity.
A long and harsh journey with many updates such as EIP 86, EIP 2938, EIP 1014, EIP 2718,… It was not until the most recent update, EIP 4337, that this technology received attention. Especially after the ETH Denver event, where Vitalik devoted fancy phrases to this technology such as enhancing security, enhancing flexibility, enhancing usability.
Technology Overview Account Abstraction
Brief explanation of Account Abstraction
In today’s Crypto market, there are often two popular types of wallets:
- Externally Owned Accounts (EOA): This is often called a wallet like Metamask, Trust Wallet, Ledger,… that we often use includes Public Key (wallet address) & Private Key (12 characters or a Seed Phrase sequence). EOA wallets are often used to store cryptocurrencies, sign transactions,…
- Contract Accounts (CA): This is an account built on a smart contract that operates automatically as vesting token wallets, liquidity pool wallets,…
Using Account Abstraction technology in the wallet we have a new phrase Smartcontract Wallet combining the best things from EOA wallet and CA wallet. Smartcontract Wallet will include:
- Similar and identical features to the EOA wallet in custodial assets or sign transactions.
- Using smart contracts is similar to CA wallet, but Smartcontract Wallet’s smart contracts are more customizable.
Problems that prevent Crypto from Mass Adoption
UI/UX are big problems that make Crypto in general and DeFi in particular unable to Mass Adoption. Why? Let’s take a look at a few cases below:
- Just carelessly, you can lose your Private Key and not be able to restore it. The story of hiring excavators and workers to dig landfills to find hardware containing Bitcoin screws is a story everyone knows. Wonder who among us has never lost a Private Key?
- DeFi is a land of more risk than opportunity. Could it be that just one wrong click on a link can easily cause all of our assets to evaporate? How can hackers get our Private Key without being able to get our assets?
- To complete a transaction, you must sign up to 3 times. Obviously, it is more complicated than going to the bank to transfer money or going to a door to ask for a stamp.
- How to easily build a Multisig wallet? Multisig wallet is currently too difficult to use.
- If we encounter unexpected events, how can we ensure that our property will belong to the right person we need without worrying about competition?
This is just one of the inconvenient experiences with Crypto & DeFi. So what is the solution? What do you think about Account Abstraction technology being able to solve all of the above problems?
Applications of Technology Account Abstraction
Before going into the application of Account Abstraction technology, I want everyone to note one point: “Account Abstraction technology has limits and the limit is our imagination“. The reason here is because Smartcontract Wallet is set up by main lines of code so its customization is extremely high. I believe that like DeFi, Smartcontract Wallet will initially be quite simple like AMM, Lending & Borrowing, Yield Farming but will gradually be improved such as Derivatives, Leverage Yield Farming, Yield Trading,…
So all applications of Account Abstraction technology come from lines of code, so don’t see the new features of Smartcontract Wallet and think that it is not Account Abstraction technology.
Don’t worry about losing your Private Key
In essence, to create a Smartcontract wallet you will need to create an EOA wallet similar to Metamask or Trust Wallet and you will also be provided with both a Public Key and a Private Key. So how can you lose your Private Key but still be able to create your original wallet? All thanks to the Smartcontract feature, there are a number of ways to get your wallet back without needing a Private Key.
- When creating, you can set up that there will be 5 other wallet addresses that have the right to reactivate the original wallet, only requiring 3/5 approval. For example: You make a personal wallet. You can install that if you lose your wallet, only 3 out of 5 people including your father, mother, grandfather, grandmother and younger brother agree, you will get your Private Key back. Sometimes only 2/5 is needed depending on your wishes and settings.
- You can set up a backup wallet. As long as this backup wallet is activated, all assets from the lost Private Key wallet will be automatically transferred to the backup wallet.
Don’t worry about hackers getting your wallet
By mistakenly clicking on a malicious link or connecting the wrong wallet to one of the protocols that are being attacked or signing a transaction that has been pre-set by a hacker. To let Hackers see your assets without being able to do anything, you can install some of the following features:
- Users can set a password if they want to transfer money. If the Hacker cannot enter the correct password, the money cannot be transferred. You can even set it if the password is incorrect 5 times, the wallet will be disabled.
- When you use wallet A, you can set wallet B to pay transaction fees when wallet A transactions, so when Hackers get wallet A, they will not be able to transfer money because there is no transaction fee. Even if a Hacker deposits money into the wallet, it will not be accepted because wallet A only receives fees from wallet B.
- You can set up that if wallet A transacts, it needs confirmation from other wallets such as B and C. If the Hacker transacts without the consent of both wallets, the transaction will not be performed. This solution is similar to Multisig wallet but Smartcontract wallet has a much better UI UX.
With the above factors, your wallet seems to have more layers than you mentioned. Similarly, you can set up if you want to log in to your Twitter account, you need a code sent to Google Email, Google Autheticator code, message code,… the more layers, the more secure your account is. honey. However, usually 3 layers of security will be best.
Pay for Gas with any type of asset
With Account Abstraction technology, users can set transaction fees to be paid within the transaction and can pay with transaction tokens without having to go to the Native Token network like ETH. This is an extremely important feature because not everyone owns ETH when entering the Crypto market. If new people go to the exchange to buy ETH and then send it to their wallet, it will also make the user experience much worse.
This could be one of the big steps forward in improving user experience.
One for all
Performing a transaction on DeFi requires us to sign at least 3 times, including 1 confirmation of wallet access, confirmation of protocol conditions and the last time for the transaction to take place. Besides, when I experience some DeSocial platforms, when I drop a heart I have to sign, I have to sign a comment, I have to sign when I follow someone,… this gives me an extremely frustrating feeling. Meanwhile, I have had a long time with these experiences. So what about new people?
With Account Abstraction technology, you can sign once and then all transactions do not need to be signed again.
Above are just a few outstanding applications of Account Abstraction technology with user experience. Once again “Account Abstraction technology has limits and the limit is our imagination“.
Technology Account Abstraction Is Everything for Mass Adoption
It is undeniable that the great benefits of Account Abstraction technology for bringing Crypto, DeFi, GameFi, NFT,…. to Mass Adoption but it is not all. How to get Crypto Mass Adoption when:
- A transaction fee is up to $5, $10, $15 or even several dozen dollars. Besides, the speed is still too slow.
- Putting assets on a Blockchain where decentralization is threatened such as a network that can shut down at any time or a network that only has a few dozen Validators like BNB Chain. Even Layer 2 platforms have decentralization problems.
The above two factors are directly related to the infrastructure problem of current Blockchain platforms, still struggling in the Blockchain trio including Security – Decentralization – Expansion. So many factors are needed to help Crypto reach Mass Adoption, but it cannot be denied that Account Abstraction plays an indispensable part in it.
Summary
Account Abstraction technology plays an important role in bringing Crypto to Mass Adoption but we are only at the first steps of this technology. Hopefully through this article everyone can see the potential of Account Abstraction technology.
