Vitalik Buterin is convinced will go live soon?
For crypto natives, wallet security has always been a concern, as loss of private keys, mnemonic phrases, assets, or inability to authorize can cause users to lose ownership of their assets. Crypto novices find it difficult to understand these various concepts, and they may also find frequent authorization during transactions complicated. This indirectly increases the barrier to entry into Web 3. The many features of the upcoming ERC-4337 standard are a new standard that can help users solve these problems, and are also a necessary way to popularize crypto.
What is the new ERC-4337 standard that Ethereum wants to introduce? Who is the applicant?
As the most popular blockchain-based computing platform for developers, Ethereum offers developers the ability to create and deploy decentralized applications on it. Previously, Ethereum announced a new standard called ERC-4337 that aims to improve usability, prevent private key loss, and streamline transaction processes.
ERC-4337 is an account abstraction proposal put forward by Ethereum founders Vitalik Buterin, Yoav Weis, Dror Tirosh and others. The proposal aims to make Ethereum wallets more user-friendly and prevent key loss. Vitalik and his team proposed converting the user's externally owned account (EOA) into a smart contract account (CA), which would allow users to get built-in mechanisms to access their cryptocurrencies.
Put simply, the ERC-4337 standard aims to facilitate the use of Ethereum wallets and prevent users from losing access to their cryptocurrencies. To achieve this, Ethereum's creators propose turning wallets into smart contracts. Smart contracts have built-in mechanisms that can help users protect the security of their cryptocurrencies even if they forget their password or lose their private keys. This key feature includes options that require multiple approvals for transactions, as well as a system where multiple users can help restore access to an account if someone loses their private key.
Translate to English: The difference between EOA and CA
In Ethereum, there are two different types of accounts, namely external owned accounts (EOA) and contract accounts (CA). Simply put, an EOA consists of a public key and a private key, like MetaMask, and users can transact and access their accounts with a mnemonic phrase or private key.
On the other hand, CA has no private key and is controlled by the logic of the code in its smart contract, which is not controlled by the user. The main difference is that a CA can be defined by its code to do anything, while an EOA is manually controlled by the user's intentions. Smart contracts can do anything that can be written in code, while an EOA can essentially only sign transactions.
The reality is, "Not your keys, not your crypto" If you lose your private key or password or it is stolen, your assets are no longer yours. Users do not have absolute ownership of their accounts, only temporary ownership through their keys and passwords. Once these are lost, the coins are gone.
As a new standard, ERC-4337 can address the vulnerabilities of these account types and improve the user experience.
Features of ERC-4337
Account recovery
The ERC-4337 standard offers several important features that set it apart from other standards. One of its main features is a social recovery system that traditional Ethereum account users need to remember and keep secret 12-24 English words and private keys. As mentioned earlier, the account cannot be recovered if the account owner loses their private key or associated security measures, but this system allows multiple users to recover the owner's access to the account, which reduces the risk of permanent loss of funds and provides additional security. For example, users can select trusted individuals to help link their accounts, similar to traditional banking services, which greatly increases overall adoption of encryption.
Multisig functionality
Another important feature of ERC-4337 is the ability to create multisig wallets, which require multiple users to sign transactions, increasing security and trust in the system. In addition, the standard combines External Owned Accounts (EOA) and Contract Accounts (CA), which makes Ethereum wallets more secure and user-friendly. For example, users can specify a group of specific people (lawyers, family members, trusted friends) who can access the account if they all agree. Biometric features similar to smartphone features can also be used to control access to the account.
Gas Optimization
ERC-4337 also has auxiliary functions for gas payment, and users can also use various tokens or even off-chain credit cards for payment, so transactions can be made without ETH. In addition, it is it allows others to pay the gas charges for you without having the necessary gas in your wallet. There are many benefits to this approach, especially for new users. For example, if new users are in some transaction processes, you can help them pay for gas.
Pre-authorized transactions
One use case of ERC-4337 is the ability to pre-authorize transactions for a specific period of time and/or a specific Dapp. Imagine a user playing a blockchain game on L2 and not having to go through the signature process every time they buy/sell something, but instead having an automated and seamless transaction experience based on pre-authorization. This would make the Dapp experience smoother and more user-friendly.
Transaction bundling
Transaction bundling is also an important feature of ERC-4337, allowing users to bundle multiple transactions and complete all required processes with just one signature. For example, when a user exchanges or adds liquidity on Uni, the authorization, token approval, exchange, and liquidity addition steps all require wallet confirmation. Transaction bundling solves the problem of frequent confirmations in this process and increases transaction efficiency.
Subscription mode
The subscription mode of ETH refers to a mechanism provided by the Ethereum network that allows developers to subscribe to certain events or data updates (subscription to contract events, subscription to blockchain data). When these events or data updates occur, the Ethereum network automatically notifies developers. With this mechanism, developers can easily achieve real-time data synchronization and notification capabilities. In the past, ETH subscriptions required wallet approval and were executed by smart contracts, but ERC-4337 simplifies this process through local integration.
