Thread by @great_ben_

Let’s talk #ERC4337.

It’s a new #Ethereum standard that introduces “Account Abstraction,” or smart account, capabilities in production. 

A thread🧵👇
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#ERC4337’s already spread to a handful of other chains, and it’s got big implications for #NFTs wherever it goes. Let’s dig into these implications in this thread 🔻

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What Is Account Abstraction?🔻

To understand AA, first it’s important to grasp the basics of accounts on #Ethereum and #Ethereum Virtual Machine (EVM) networks.
There are two main kinds of accounts to consider here: Externally Owned Accounts (EOA) and Contract Accounts (CA).

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An EOA is a simple wallet, e.g. a #MetaMask wallet, that can only sign transactions. A CA is an actual smart contract, so it contains customizable code, but it can only complete transactions if approved by an EOA wallet. 

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What AA does, then, is essentially blend EOA x CA capabilities, making it so regular wallets can execute smart contract code. This field is a big area of interest in the Ethereum development community right now because of the many use cases it can foster.

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What Is #ERC4337?🔻

With its mainnet arrival announced on March 1, 2023, #ERC4337 is a new Ethereum standard that introduces AA to increase the flexibility of accounts on, and simplify user interactions with, #Ethereum.

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This standard is now in action on other #EVM chains.

There are different ways to approach AA, but #ERC4337 employs an “alternative mempool” technique that can enable new kinds of transactions to be bundled and sent onchain thanks to a special “EntryPoint” smart contract.

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At the heart of this system are three basic elements:

1. UserOperation (UserOp): A transaction made from an #ERC4337 wallet, it represents the action a user wants to perform on #Ethereum or an #EVM.

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2. Bundlers: A node that aggregates UserOps and creates transactions to be executed, acting as intermediaries between users and the chain in question.

3. Paymasters: Entities, e.g. apps, that can cover the costs of users’ UserOps gas fees.

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#ERC4337 NFT Use Cases🔻

#ERC4337’s advances can considerably simplify the user experience around interacting with crypto but also with #NFTs. Some AA applications that should become increasingly commonplace here going forward include:

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1. Simpler, Safer Accounts — Currently, #NFT users need to manage a pair of cryptographic keys, e.g. safely storing a 12-word seed phrase, to keep access to their digital assets. With #ERC4337, users can instead maintain their wallets with Apple or Google accounts, etc.,

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and recover their wallets using trusted social connections like family and friends. Conversely, apps can also use this standard to create and maintain wallets on behalf of their users too.

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2. Gasless Transactions — For instance, on Ethereum you have to pay an #ETH fee as gas to complete transactions. With #ERC4337, users can perform transactions without #ETH or other crypto in their wallets thanks to Paymasters. Or they could pay gas with stables, WBTC, etc.

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3. Bundled Transactions — #ERC4337 allows for multiple onchain operations to be performed in a single transaction. For example, let’s say you’re moving #NFTs from one wallet to a new vault wallet.

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With AA you can list the ones you don’t want to keep anymore and transfer the ones you do all within a single transaction, thereby considerably reducing the complexity and time of the transaction experience.

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4. Permissioned Activity — Thanks to #ERC4337 users can now customize permissions for their accounts in ways, like requiring multisig transactions, allowing only certain addresses to perform certain transactions on their behalf, or restricting certain activities altogether.

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5. Session Keys — Lastly, another really cool application that #ERC4337 opens up are “session keys,” i.e. temporary keys that allow a wallet to interact with a specific app in specific ways for a specific period of time.

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One can envision session keys becoming very popular in the #NFT gaming scene, where you could use it with a game to ensure you don’t have to sign a ton of transactions or be worried about having and needing to revoke open token approvals months later.

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The Big Picture🔻

#ERC4337 only just recently went live on mainnet, so the infrastructure scene around it has only just begun to bloom. Some teams like @stackup_fi are already doing a great job making it easier for builders to start developing with #ERC4337.

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Giants like @MetaMask are exploring here, so expect a lot more traction around this standard in the months ahead as even more projects start diving in.

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Combine the powers of the #ERC4337 standard with the powers of the also recently activated #ERC6551 (NFTs as wallets) standard, and we get an exciting new era in the #NFT space filled with wide open possibilities.

SOURCE:metaversal.banklesshq.com/p/erc4337?utm_…
@WPeaster 🫡

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What do you feel excited about??
What do you feel discouraged about?

Let me know in the comment section

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#NFT #ERC4337 #ERC6551 #ERC20 #EthereumNFTs

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