Smart Accounts on Ethereum set to Simplify Crypto for Newcomers

Crypto Adoption Benefits From ERC-4337

The launch of the new ERC-4337 standard has enabled the availability of smart accounts on Ethereum, which is expected to aid mainstream adoption of cryptocurrencies by making them more user-friendly.

Ethereum Foundation security researcher, Yoav Weiss, announced at WalletCon in Denver that the core contracts for ERC-4337, known as "account abstraction," have passed an audit by Open Zeppelin and will be available on every Ethereum Virtual Machine compatible network. Weiss believes this will allow new users to onboard into the world of crypto without the need to learn about complicated seed phrases or the technical process of setting up a wallet.

Account abstraction allows for the use of two-factor authentication, setting monthly spending limits, and session keys to play blockchain games without needing to approve transactions continually.

Smart accounts will upgrade standard smartphone security modules to de facto hardware wallets, allowing for secure storage of unique cryptographic keys used for cryptocurrencies. Users who lose their phone or device can utilize time-locked social recovery of their account via a group of trusted friends or commercial service.

While similar functionality is available on smart contract wallets from Argent and Gnosis, these solutions require centralized components called relays to pay gas fees. In contrast, ERC-4337 decentralizes the entire system by using decentralized infrastructure called "bundlers."

Anyone can run a bundler, which takes user operations from the mempool and delivers the desired result back to the wallet. The bundlers also pay for the gas required and are compensated by the user's contract account or a third party known as a "paymaster." Smart accounts will continue to be a key theme for crypto in 2023, shaping the industry's future.

What is Ethereum:

Ethereum is an open-source, distributed computing platform based on blockchain technology that can execute smart contracts - that is, the terms written in the contract will be executed transparently, automatically when the previous conditions are satisfied, and no one can interfere. At the same time, Ethereum also allows developers to build decentralized applications (DApps) and decentralized autonomous organizations (DAO).

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