"ERC-4337" - the future of Ethereum wallets or another trust trap? ๐
Last night, I listened in on an interesting conversation hosted by @_joinfire in their Twitter Space.
People seem to be both excited and skeptical about it.
Let's dive in and understand a little...
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Last night, I listened in on an interesting conversation hosted by @_joinfire in their Twitter Space.
People seem to be both excited and skeptical about it.
Let's dive in and understand a little...
๐งต1/17๐งต
๐๏ธ Things we will be talking about:
- What is ERC-4337?
- Account Abstraction
- UserOperations
- Alternative Mempool
- Entry Point
- Paymaster
- Trust issues
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- What is ERC-4337?
- Account Abstraction
- UserOperations
- Alternative Mempool
- Entry Point
- Paymaster
- Trust issues
๐งต2/17๐งต
First, what is ERC-4337? ๐ค โ
It's a proposed #Ethereum Improvement Proposal (EIP) that aims to enhance wallet UX, reduce gas fees, and secure off-chain transactions. Let's look at some of the key-components of this EIP.
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It's a proposed #Ethereum Improvement Proposal (EIP) that aims to enhance wallet UX, reduce gas fees, and secure off-chain transactions. Let's look at some of the key-components of this EIP.
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"Account abstraction" is the buzz when discussing #ERC4337.
AA decouples Ethereum's account model, enabling users to define their own account logic.
You can create custom rules for validating transactions, signing messages, and even managing access.
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AA decouples Ethereum's account model, enabling users to define their own account logic.
You can create custom rules for validating transactions, signing messages, and even managing access.
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One key aspect of AA is the ability to create "Smart Contract Wallets."
It bridges the gap between EOAs and smart contracts, allowing users to create unique transaction types, gas fee models, and privacy features.
The possibilities are endless! ๐๐
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It bridges the gap between EOAs and smart contracts, allowing users to create unique transaction types, gas fee models, and privacy features.
The possibilities are endless! ๐๐
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๐ก๏ธ๐ With AA, users can implement
- Advanced security measures like multi-signature wallets.
- Complex access control systems.
- Social recovery and batch transactions.
It's like having a digital fortress for your crypto assets!? But hold your ๐ด, there's more to it!
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- Advanced security measures like multi-signature wallets.
- Complex access control systems.
- Social recovery and batch transactions.
It's like having a digital fortress for your crypto assets!? But hold your ๐ด, there's more to it!
๐งต6/17๐งต
๐งฉ๐ฎ UserOperations are at the heart of ERC4337, but what are they exactly?
They are off-chain transactions. Containing all the necessary information for a transaction, such as sender, recipient, value, and data, but they're processed off-chain, reducing network load.
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They are off-chain transactions. Containing all the necessary information for a transaction, such as sender, recipient, value, and data, but they're processed off-chain, reducing network load.
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๐โโ๏ธ๐ Let's dive deeper into some other ERC4337 features, like altmempool, bundlers, entrypoint, and paymaster. These components play a crucial role in the User Operation ecosystem, helping it function smoothly.
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๐๏ธ๐ Altmempool is a term used for an alternative mempool, where User Operations are stored before being executed.
It separates User Operations from regular on-chain transactions, optimizing the experience and reducing congestion.
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It separates User Operations from regular on-chain transactions, optimizing the experience and reducing congestion.
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Bundlers are the unsung heroes, the oompa-loompas of ERC4337.
They collect User Operations from the altmempool, batch them, and submit them to the #blockchain. This process is what helps to reduce gas fees and improve overall efficiency. ๐ฆธโโ๏ธ๐ฆธโโ๏ธ
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They collect User Operations from the altmempool, batch them, and submit them to the #blockchain. This process is what helps to reduce gas fees and improve overall efficiency. ๐ฆธโโ๏ธ๐ฆธโโ๏ธ
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The Entrypoint smart contract receives bundled User Operations from bundlers and serves as a bridge between off-chain processing and on-chain execution.
It ensures the conditions specified by users are met, and verifies that the operations haven't been tampered with.
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It ensures the conditions specified by users are met, and verifies that the operations haven't been tampered with.
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๐ฐ๐ก๏ธ Paymasters enter the scene when meta-transactions are used. They reimburse relayers for the gas fees they pay while processing User Operations.
In return, paymasters get compensated with a fee, ensuring a fair system for everyone involved. ๐ฆ
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In return, paymasters get compensated with a fee, ensuring a fair system for everyone involved. ๐ฆ
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These features combined make ERC4337 a versatile and powerful proposal ๐ช ๐๏ธ Like a swiss-army knife!
๐จ But wait, there's a catch! Some critics argue that ERC4337 might be a trust trap.
๐ค๐ There is an element of trust in the ERC4337 proposal...
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๐จ But wait, there's a catch! Some critics argue that ERC4337 might be a trust trap.
๐ค๐ There is an element of trust in the ERC4337 proposal...
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๐จ๐ฆ Relayers and bundlers are responsible for submitting User Operations to the blockchain.
This means they have the power to potentially censor, delay, or prioritize transactions based on their own preferences or incentives. ๐งโ ๏ธ
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This means they have the power to potentially censor, delay, or prioritize transactions based on their own preferences or incentives. ๐งโ ๏ธ
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๐๐ The involvement of third parties like relayers and bundlers can be seen as a form of centralization, which goes against the core principles of decentralization in the blockchain space.
This raises trust-related concerns for some community members.
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This raises trust-related concerns for some community members.
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๐ค๐ญ On one hand, it promises better UX, reduced fees, and more flexibility. On the other, it may introduce centralization risks.
As always, it's up to the community to decide. If implemented correctly, ERC4337 could revolutionize wallet interactions.
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As always, it's up to the community to decide. If implemented correctly, ERC4337 could revolutionize wallet interactions.
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Wheew! ๐ฎโ๐จ
The thread went longer than expected. There's lot more going on, this is just a general overview.
What do you think about ERC4337? Are you excited about the possibilities, or do you have concerns?
Hope the information was useful and if so kindly ๐ ๐
๐งต17/17๐งต
The thread went longer than expected. There's lot more going on, this is just a general overview.
What do you think about ERC4337? Are you excited about the possibilities, or do you have concerns?
Hope the information was useful and if so kindly ๐ ๐
๐งต17/17๐งต
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