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ERC4337 is still the best solution for achieving account abstraction at this stage.
Author: Kernel Ventures Jerry Luo
Editor(s): Kernel Ventures Mandy, Joshua
TLDR:
There are two wallet types on Ethereum: EOA and SCW, facing the problems of low execution efficiency and the inability to initiate transactions independently. Ethereum developers have gone through several explorations, and the best solution they have found at this stage is account abstraction implemented through ERC4337.
ERC4337 wallet realizes the separation of private keys and account subjects through Bundler, batch packaging transactions, and the ability to launch transactions. What's more, through the built-in code of the smart contract wallet, transactions can be automatically processed based on external information.
But ERC4377 still faces challenges from other solutions such as consensus layer's account abstraction and native account abstraction wallets. Additionally, the ERC4337 entry contract was only launched on the Ethereum main network in March this year with problems to be explored and uncertainty in the decisive solution. Finally, due to the single-point of the Entry Point contract, ERC4337 is greatly limited to upgrades.
In order to solve these problems, the developers of ERC4337 have also supplemented the EIP proposal to optimize without changing the entry contract. At the same time, they have built a large number of ERC4337 wallet projects and Dapp projects focusing on ERC4337 wallet interaction to cope with resistance from EOA.
In general, ERC4337 is still the bset solution for achieving account abstraction at this stage. Through Paymaster's compensation contract, the sill for DeFi can be greatly optimized snice community can provide 0 gas or low gas transactions to attract more users to participate in. Through packaging and batch processing of transactions, users' participation experience in SocialFi and GameFi can be greatly improved, which will provide more diverse interaction options for participants in SocialFi and GameFi.
Background
Trade-off between decentralization and convenience has always been a major dilemma for crypto participants. To embrace decentralization, a series of complex processes should be accepted such as storing mnemonics, private key signatures, and setting nonce values. To pursue convenience, the thunderstorms of a series of centralized institutions such as FTX and JPEX make it impossible for us to ignore the importance of account ownership. Up to now, Ethereum developers have made a series of attempts to achieve accounts with the convenience of Web2 in Web3 - account abstraction. At this year's ETHCC conference, Ethereum founder Vitalik Buterin summarized these attempts. Among them, ERC4337 standard gained the greatest consensus among developers.
The Principle of ERC4337
ERC4337 mainly involves three objects: UserOperation, Bundler and on-chain contract in the process of separating control and ownership from the account subject. UserOperation is consisted of user input, while Bundler completes the process of packaging and sending transactions. The contract on chain has three parts: Entry Point, Paymaster Contract and Wallet Contract, which mainly implements complex verification and execution logic.
UserOperation: UserOperation contains all transaction-related information submitted by the user. The following figure shows the parameters needed in both UserOperation and a normal EOA account.
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