ERC-4337 crypto wallets could bring the next 1B+ users to web3.
Here is why:
What is Account Abstraction (ERC-4337)?
This innovative wallet gives you the same features a bank would without having to trust a bank.
Why is it different?
Accounts in Ethereum = unique identities that can do transactions.
There are two types:
Limitations of EOAs
- poor user experience: have to remember lengthy seed phrases
- high risks: loss of a private key = loss access to wallet
- limited capabilities: can only do transactions and store data
Account Abstraction is the solution to problems of EOAs.
Account Abstraction introduces smart accounts,
where your web3 wallet is represented by a smart contract.
Smart contracts are more flexible than EOAs.
Smart accounts are like computer programs.
Each program can be customized with specific rules and settings.
Anything you can program in code is possible in a Smart account.
ERC-4337 isn't the first account abstraction proposal.
But it is the first that doesn't require a change to Ethereum's consensus layer,
which significantly accelerated its approval.
Exciting features of ERC-4337 include:
1. Wallet Recovery
Imagine you lost the key to your house, but your neighbor has a spare key.
Similarly, if you lose your wallet key,
with ERC-4337 you can use Social Recovery to get your wallet back.
2. Multi-Sign Transactions
With ERC-4337, you can create transactions that need approval from multiple people.
This helps keep things secure and decentralized.
3. Bundle Transactions
ERC-4337 allows you to combine multiple actions into one transaction.
For example, you can create and sell an NFT at the same time,
or send and receive money in one go.
4. Custom Limits and 2FA
Think of this like setting parental controls on your TV.
You can customize how your wallet behaves to fit your needs,
like setting limits on how much you can spend or requiring extra verification for certain actions.
5. Gasless and Sponsored Transactions
This is like getting free shipping on your online orders.
With ERC-4337, you can skip paying gas fees for some transactions or have someone else pay them for you.
You can also link your transaction to your favorite charity and make a donation every time you spend.
It will onboard the next 1B+ users.
@Rohan_0g said it’s a MASSIVE UX update that was needed in web3.
The future is here, and it's called ERC-4337.