All about account abstraction: from 2023’s growth to a multi-chain future

OKX Ventures
4 min readOct 3, 2023

Authored by Kiwi Yao, researcher @OKX Ventures

Since September 2021, when Vitalik Buterin proposed EIP-4337, the concept of account abstraction has been gradually introduced into mainstream Web3 wallets. OKX Ventures takes the origin of this concept as a starting point and systematically reviews the past, current status, and future opportunities of account abstraction.

Jump to each article

A quick and simple guide to account abstraction and EIP-4337

Exploring multi-chain account abstraction solutions: native support and ERC-4337 compatibility

Crunching the data on account abstraction’s 2023 growth

Beyond traditional transactions: the opportunities account abstraction brings

Exploring the powerful synergy of account abstraction and intents

What’s next in 2023 for account abstraction?

A quick and simple guide to account abstraction and EIP-4337

In this article, we unpack what account abstraction (AA) means for Ethereum accounts, focusing on the newly introduced EIP-4337 proposal. We explore how AA aims to simplify account management, offering users more flexibility and enhanced security options. The discussion includes key elements like user operations, bundler, and EntryPoint contracts, and contrasts EIP-4337 with its predecessor, EIP-3074. We also delve into the implications for different wallet types and the overall transaction process. If you’re keen to understand the evolving landscape of Ethereum account management, this article offers a comprehensive overview.

Learn more

Exploring multi-chain account abstraction solutions: native support and ERC-4337 compatibility

In this piece, we dive into the emerging world of multi-chain account abstraction, a technology that simplifies user interaction across multiple blockchains. We discuss two main types of multi-chain AA: native support and ERC-4337 compatibility, each with its own set of advantages and challenges. The article also provides an in-depth look at various networks like Arbitrum, Polygon, and Starknet, comparing their AA solutions and how they handle issues like gas payments and transaction validation. Whether you’re interested in the technical aspects or the broader implications for blockchain adoption, this article offers a comprehensive guide to understanding multi-chain AA.

Learn more

Crunching the data on account abstraction’s 2023 growth

In this article, we provide a comprehensive data-driven analysis of the rapid growth in account abstraction, particularly in 2023. By September, over 520,000 ERC-4337 accounts were deployed on Ethereum, Arbitrum, Optimism, and Polygon, with a staggering 80% created in July alone. Polygon and Optimism saw significant boosts due to new product launches, while Arbitrum and Ethereum lagged behind somewhat. The article also highlights the explosive quarterly growth rates in user ops and the increasing role of paymasters and bundlers. Each major network — Polygon, Optimism, Arbitrum, and Ethereum — is examined in detail, revealing their unique contributions to the surge in account abstraction. The data suggests that layer 2 solutions are already playing a pivotal role in driving Web3 adoption.

Learn more

Beyond traditional transactions: the opportunities account abstraction brings

Here we explore the opportunities account abstraction brings to the crypto landscape, particularly with the ERC-4337 standard. Through smart contracts like paymasters, AA is bridging the Web2-Web3 divide, offering solutions for gas fee payments and transaction pre-approvals. Bundlers, another key feature, aggregate user actions for efficient blockchain interactions. The article also touches on the advent of ERC-6551, which is set to revolutionize the NFT market, especially in on-chain gaming and decentralized identity (DID). Overall, AA is subtly reshaping the Web3 ecosystem, making it more accessible and versatile for both developers and users.

Learn more

Exploring the powerful synergy of account abstraction and intents

In this piece, we look into the synergy between smart accounts and intent in shaping the future of digital asset management. Intent focuses on user experience, translating needs into streamlined operations, while account abstraction handles backend efficiencies. The article categorizes various types of intent, from conditional to multi-step, and explores how AA can make these intents more efficient. It also discusses the role of intermediary intent pools, language evolution, and the potential for AI automation. Risks like centralization and trust, however, shouldn’t be overlooked. Overall, the convergence of smart accounts, intent, and AA could set the stage for a more efficient and user-centric digital world.

Learn more

What’s next in 2023 for account abstraction?

In this last article, we look at what the future of AA could look like, identifying two main market participants: smart contract wallets and third-party infrastructure providers. Smart contract wallets like Unipass are in the early stages of adopting EIP-4337, while Web2 giants like Visa are also exploring AA. On the other hand, infrastructure providers like StackUp and Biconomy offer modular solutions, with StackUp being particularly profitable across multiple chains. Pimlico leads in market share and profitability, especially on Polygon. The article also outlines various Ethereum improvement proposals (EIPs) that aim to optimize AA, and discusses the roadmap for EIP-4337, which focuses on market expansion and user experience optimization. The future of AA is tied to its adoption rate and its ability to innovate, particularly in the DeFi and GameFi ecosystems. Monetization models are still under exploration, emphasizing the need for high-value use cases.

Learn more

Disclaimer

This article/blog is provided for informational purposes only. It represents the views of the author(s) and it does not represent the views of OKX/OKCoin. It is not intended to provide (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold digital assets, or (iii) financial, accounting, legal, or tax advice. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk, can fluctuate greatly, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. Both OKX Web3 Wallet and OKX NFT Marketplace are subject to separate terms of service at www.okx.com.

--

--

OKX Ventures

OKX Ventures is an investment institution under OKX.com, focusing on exploring the best blockchain projects across the globe.