Ethereum Announces ERC-4337 Smart Accounts at ETHDenver

ERC-4337 aims to improve the usability and scalability of Ethereum, allowing users to recover lost private keys, bundle transactions in one go, set up automated payments with their crypto wallets, and more.

Mar 6, 2023
by Akira Ming
Ethereum Announces ERC-4337 Smart Accounts at ETHDenver
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ERC-4337 is set to rewrite the usability of Ethereum

Ethereum, the second-largest cryptocurrency by value, has deployed a major upgrade called account abstraction via the new ERC-4337 token standard. Ethereum Foundation security researcher Yoav Weiss broke the news at WalletCon, an event related to ETHDenver. 

Based on the announcement, ERC-4337 is meant to help improve the usability and scalability of Ethereum. It allows wallet holders to recover lost private keys, bundle transactions in one go, and even set up automated payments with their crypto wallets. This eventually gives rise to smart accounts, or smart contract wallets, made possible via account abstraction.

Account abstraction allows users to customize their own wallets on Ethereum instead of having to use default account types. Currently, there are two types of accounts on Ethereum: externally owned accounts (EOAs) and contract accounts. EOAs are controlled by private keys and can send transactions and hold ETH, while contract accounts (CAs) are controlled by code and can execute smart contracts.

However, each of them has its own limitations. For instance, EOAs cannot pay transaction fees with tokens other than ETH, while CAs cannot initiate transactions themselves. With account abstraction, users can enjoy the best of both worlds and implement multiple changes to their crypto wallets. 

One of the amazing ERC-4337 use cases is that it allows automated payments in Web3, an exciting concept that even payments giant Visa is discussing. Besides, users can regain access to their accounts through a social recovery system, which allows multiple users to assist in recovering access to a crypto wallet if they lose their private key. 2FA will be available, adding another layer of security to blockchain wallets.

With ERC-4337, users can group transactions together, such as setting approval and completing the trade with a single signature. There are also sponsored transactions that allow someone else to cover the gas fees. This is especially useful when onboarding non-crypto natives. 

Furthermore, it allows users to pre-approve transactions for a set period of time. For instance, while playing a blockchain game on an L2 network, players can sign approval for marketplace transactions that stays valid for a certain time, enabling a seamless user experience. With so many possibilities, Ethereum is set to become a more user-friendly and accessible blockchain in the crypto landscape. 

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