The Good Tech Companies - How Etherspot Redefines The Way We Build Ethereum Smart Contracts (Account Abstraction)

Episode Date: April 22, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/how-etherspot-redefines-the-way-we-build-ethereum-smart-contracts-account-abstraction. Explore ERC-4337, Account Abstraction, and how Etherspot's innovative approach streamlines the onboarding of new users into dApps & the broader Web3 ecosystem Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #web3, #blockchain-development, #programming, #dapps, #react, #developer-tools, #account-abstraction, #good-company, and more. This story was written by: @etherspot. Learn more about this writer by checking @etherspot's about page, and for more stories, please visit hackernoon.com.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. How Etherspot Redefines the Way We Build Ethereum Smart Contracts Account Abstraction by Etherspot As Vitalik Buterin stated in one of his articles, account abstraction has for a long time been a dream of the Ethereum developer community, and there are good reasons for that. Account abstraction, ah, enables EVM code to implement not only application logic but also verification logic in users' wallets, thus fostering creative freedom in

wallet designs. This enables innovative features such as multi-sigs, social recovery, simpler signature algorithms, post-quantum safe signature algorithms, and upgradability. However, the current Ethereum protocol's requirement for transactions originating from an ECDSA-secured externally owned account, EOA, makes iText Tramaili difficult, adding a 21,000 gas overhead to each user operation. EIP-2938 aimed to address this by allowing transactions to start from a contract, not an EOA. Yet, it required significant protocol changes. And finally, ERC-4337 provides a solution without consensus layer protocol changes. Defined by this proposal, account abstraction allows users to use smart contract wallets

containing arbitrary verification logic instead of EOAs as their primary account. On March 1, 2023, ERC-4337 was launched on the Ethereum mainnet with EtherSpot, an account abstraction SDK provider, playing a pivotal role. Receiving a grant from the Ethereum Foundation to advance this initiative, EtherSpot is considered an important participant in this event. Below, we will explore the details of ERC-4337-A and how Etherspo's innovative approach streamlines the onboarding of new users into decentralized applications and the broader blockchain ecosystem. Understanding ERC-4337, this initiative merges the protocol's two existing account types, externally owned accounts and smart contract

accounts, into a single contract account facilitating token transactions and contract creations. This fosters creative wallet designs, enabling social recovery, customization, and upgradability. Unlike Bitcoin's unspent transaction output module, Ethereum employs an account-based model, tracking and updating accounts' balances as transactions are confirmed. While EOAs are user-owned and controlled, smart contract accounts are network-deployed smart contracts, both capable of receiving, holding, and sending EtherR tokens. Current Ethereum wallets like Metamask are EOAs, limited by set rules around EOAs,

making wallet setup and private key security measures somewhat complex. Loss of seed phrases often means loss of wallet access. ERC 4337 addresses these limitations. It combines the functionalities of smart contract accounts and EOAs, simplifying the deployment of desired wallet features. Unlike EIP-2938, the proposal mentioned above, that required consensus layer changes, ERC-4337 introduces a higher-layer pseudo-transaction object known as user operation. Users send user operation objects into a separate mempool, which are then packaged into a transaction by bundlers and included in a block. Bundlers, functioning similarly to validators, pay gas for bundled transactions and receive fees from individual user operation

executions. This proposal adds new functions like validate user op, making a wallet a smart contract, and introduces a new contract, entry point, serving as a security gate for executing these new functions. ERC-4337 aims to achieve account abstraction decentralization by allowing anybundlers to participate, avoid consensus changes for faster adoption, and allow for innovative use cases like aggregated signatures, daily transaction limits, emergency account freezing, whitelisting, privacy-preserving applications, backslash dot. It also aims to save time and gas as bundlers can package user operation objecting to a single transaction.

For users, ERC-4337 could revolutionize crypto wallet experiences, enhancing crypto adoption. It simplifies wallet setup, eradicates the need for seedphrase retention, and enables multi-factor authentication and account recovery. Userscan access customized services, including autopay, pre-approved, and bundled transactions. It enhances security by reducing human error and offers gas flexibility, as wallets can pay gas fees with any ERC-20 tokens. With this upgrade, developers can build wallets that facilitate gas fee payments in any ERC-20 tokens. With this upgrade, developers can build wallets that facilitate gas fee payments in any ERC-20 tokens. Via ERC-4337, the complicated crypto wallet user experience could be significantly smoothed out, removing a substantial barrier to mass adoption.

Unveiling Open Source ARCA Paymaster The Paymaster is a smart contract account that manages gas payment policies, enabling projects to cover the transaction costs of their users and eliminating the need for users to hold native blockchain tokens for transaction interactions. Users, instead, can pay gas fees with any ERC-20 token, such as USDC or USDT. This feature enables application developers to sponsor gas fees and accept gas payments in stablecoins or other ERC-20 tokens, benefiting both developers and users. A user operation can designate another address as its paymaster. If set, during verification,

the entry point checks if the paymaster is willing to cover the user operation cost. If willing, fees are deducted from the Paymaster's stake DETH instead of the wallet, improving transaction workflow. Building on the flexibility offered by Paymasters, EtherSpot presents the open-source ARCA Paymaster service, furthering the quest to refine the Web3 user experience. ARCA is a backend service that validates whether the DAP user is eligible for sponsorship and, if so, generates the necessary sponsorship transaction on their behalf. The service offers sponsored transactions to allow projects to pay transaction fees on behalf of end users. Also, developers can leverage the above-mentioned gasless transactions.

You can find out more about how to utilize Ethertherspot's Arca Paymaster here. https://bit.ly 3UGL0QL https://bit.ly 3UGL0QL Exploring Scanda Bundler ERC-4337 Bundler services are intermediaries between users and the Ethereum network, bundling multiple user operations transactions to ensure the iron chain inclusion. Bundlers collect user ops transactions via the user operation function and submit them as a single transaction to the network, saving gas fees and reducing blockchain congestion.

EtherSpot has developed a modular TypeScript implementation named Scanda. Scanda provides a developer-friendly bundler for Ethereum ERC-4337 account abstraction. It adheres to the ERC-4337 standard, unlocking numerous benefits for both Ethereum and EVM-compatible chain users and developers' decentralization. It facilitates access to smart contract wallets without relying on centralized relayers controlled by a single entity. Gas cost savings. By bundling multiple transactions into one. Censorship resistance. Anybody can launch a bundler service. Backslash dot. Scanda's prominence is showcased by its live operation on 22 plus networks, including Ethereum, Polygon, Optimism, Arbitrum, Linea, Gnosis, Fuse, Base, Flare, Mantle, and more. It's compatible with NetherMind nodes, enabling operation on networks

like Gnosis and Fuse that primarily use NetherMind clients. Additionally, Scanda supports L2 chains, and a single instance of Scanda can operate across multiple networks. An exciting feature is its capability with the shared mempool, allowing ERC-4337 bundles to function like ethnodes, promoting true decentralization. To get started, get an API key at Etherspot's developer portal. How to use it? Accessing and running Scanda is made simple via a one-liner ATHTTPS://scanda.run. TransactionKit is the essential tool for developers interested in utilizing both Scanda and Arca. TransactionKit, TXKit, is a smart account React library for fast and straightforward Web3 development. In conjunction with Etherspot's Prime SDK Prime SDK, it facilitates seamless access to both ARCA and Scanda, offering a comprehensive solution for interacting with the ERC-4337 bundler service and ARCA Paymaster service.

Ideal for any DAP or front-end developers, it hides complex blockchain operations behind React components. With it, you can easily execute transactions, interact with smart contracts, and manage digital assets across 22-plus blockchains. The benefits of employing Transaction Kit include enhanced efficiency and OUSR-friendly interface for managing interactions between Scanda, ARCA, and the Ethereum network, or other supported chains. Thereby, developers get the industry's best experience. It lowers the barrier to Web3 development, intending to bring the next million users into the field. By making blockchain technology more approachable, it aids widespread adoption. To integrate Transaction Kit, developers can check out our docs for a detailed guide.

There, you'll also find all the necessary instructions and resources Toget started. The library is user-friendly, well-documented, and designed to accelerate the time spent by a dApp developer of any coding level. Wrap-up. Implementation of ERC-4337 marks significant milestones in blockchain evolution. Smart accounts offer improved functionality, streamlined user experience, enhanced security, and quantum-resistant cryptography. Although not achieving complete account abstraction yet, it introduces features that improve user experience and pave the way to mass adoption. Here at Etherspot, we are all set to redefine the way you build decentralized applications.

With our ready-to-use products like Prime SDK,k arca skanda and tx kit our multi-chain platform is not just leveraging erc 4337 but also illustrating how the standard can significantly streamline user blockchain interactions thereby lowering entry barriers for both developers and end users follow etherspot website x discord telegram github info this story was distributed Follow Etherspot. Website, X, Discord, Telegram, GitHub, Info This story was distributed under HackerNoon's brand as an author program. Learn more about the program here. Thank you for listening to this HackerNoon story, read by Artificial Intelligence. Visit HackerNoon.com to read, write, learn and publish.