Back to Course

3. Advanced Course

0% Complete
0/0 Steps
  1. 1. What is Taproot?
  2. 2. Blockchain bridges – what are they?
  3. 3. What is Ethereum Plasma?
  4. 4. What is Ethereum Casper?
  5. 5. What is Zk-SNARK and Zk-STARK? 
  6. 6. What is Selfish Mining? 
  7. 7. What is spoofing in the cryptocurrency market? 
  8. 8. Schnorr signatures - what are they? 
  9. 9. MimbleWimble - what is it? 
  10. 10. What is digital property rights in NFT?
  11. 11. What are ETFs and what role do they play in the cryptocurrency market? 
  12. 12. How to verify a cryptocurrency project – cryptocurrency tokenomics 
  13. 13. What is the 51% attack on blockchain?
  14. 14. What is DAO, and how does it work?
  15. 15. Zero-knowledge proof – a protocol that respects privacy 
  16. 16. What is EOSREX?
  17. 17. What is Proof of Elapsed Time (PoET)?
  18. 18. Mirror Protocol – what it is? 
  19. 19. What are synthetic assets? 
  20. 20. How to create your own NFT? 
  21. 21. Definition of DeFi, and what are its liquidations?
  22. 22. New identity system - Polygon ID
  23. 23. Ethereum Foundation and the Scroll protocol - what is it?
  24. 24. What is Byzantine fault tolerance in blockchain technology?
  25. 25. Scalability of blockchain technology - what is it?
  26. 26. Interchain Security - new Cosmos (ATOM) protocol
  27. 27. Coin Mixing vs. Coin Join - definition, opportunities, and threats
  28. 28. What is Ethereum Virtual Machine (EVM) and how does it work?
  29. 29. Soulbound Tokens - what are they, and how do they work?
  30. 30. Definition of LIDO - what is it?
  31. 31. What are Threshold Signatures, and how do they work?
  32. 32. Blockchain technology and cyberattacks.
  33. 33. Bitcoin script - what it is, and what you should know about it.
  34. 34. What is zkEVM, and what are its basic features?
  35. 35. Do confidential transactions on blockchain exist? What is a Confidential Transaction?
  36. 36. Algorithmic stablecoins - everything you should know about them.
  37. 37. Polygon Zk Rollups ZKP - what should you know about it?
  38. 38. What is Web3 Infura?
  39. 39. Mantle - Ethereum L2 scalability - how does it work?
  40. 40. What is the NEAR Rainbow Bridge?
  41. 41. Liquid Staking Ethereum and LSD tokens. What do you need to know about it?
  42. 42. Top 10 blockchain oracles. How do they work? How do they differ?
  43. 43. What are Web3.js and Ether.js? What are the main differences between them?
  44. 44. What is StarkWare, and recursive validity proofs
  45. 45. Quant Network: scalability of the future
  46. 46. Polygon zkEVM - everything you need to know
  47. 47. What is Optimism (OP), and how do its roll-ups work?
  48. 48. What are RPC nodes, and how do they work?
  49. 49. SEI Network: everything you need to know about the Tier 1 solution for DeFi
  50. 50. Types of Proof-of-Stake Consensus Mechanisms: DPoS, LPoS and BPoS
  51. 51. Bedrock: the epileptic curve that ensures security!
  52. 52. What is Tendermint, and how does it work?
  53. 53. Pantos: how to solve the problem of token transfer between blockchains?
  54. 54. What is asymmetric encryption?
  55. 55. Base-58 Function in Cryptocurrencies
  56. 56. What Is the Nostr Protocol and How Does It Work?
  57. 57. What Is the XDAI Bridge and How Does It Work?
  58. 58. Solidity vs. Rust: What Are the Differences Between These Programming Languages?
  59. 59. What Is a Real-Time Operating System (RTOS)?
  60. 60. What Is the Ethereum Rinkeby Testnet and How Does It Work?
  61. 61. What Is Probabilistic Encryption?
  62. 62. What is a Pinata in Web 3? We explain!
  63. 63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?
  64. 64. What are smart contract audits? Which companies are involved?
  65. 65. How does the AirGapped wallet work?
  66. 66. What is proto-danksharding (EIP-4844) on Ethereum?
  67. 67. What is decentralised storage and how does it work?
  68. 68. How to Recover Cryptocurrencies Sent to the Wrong Address or Network: A Practical Guide
  69. 69. MPC Wallet and Multilateral Computing: Innovative Technology for Privacy and Security
  70. 70. Threshold signature in cryptography: an advanced signing technique!
  71. 71. Vanity address in cryptocurrencies: what is it and what are its characteristics?
  72. 72. Reentrancy Attack on smart contracts: a threat to blockchain security!
  73. 73. Slither: a static analyser for smart contracts!
  74. 74. Sandwich Attack at DeFi: explanation and risks!
  75. 75. Blockchain RPC for Web3: A key technology in the world of decentralized finance!
  76. 76. Re-staking: the benefits of re-posting in staking!
  77. 77. Base: Evolving cryptocurrency transactions with a tier-2 solution from Coinbase
  78. 78. IPFS: A new era of decentralized data storage
  79. 79. Typical vulnerabilities and bridge security in blockchain technology
Lesson 63 of 79
In Progress

63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?

Account Abstraction (AA). This is the topic of our lesson today. This proposal completely removes changes to the consensus layer protocol. It does not add new features or change the transaction type. Instead, it introduces a pseudo-transaction object from a higher layer, called UserOperation.

For this whole process, we need to use ERC-4337. Of course, this is the Ethereum standard that makes such account abstraction possible. ERC-4337 appeared on the Ethereum mainnet in March 2023. The standard allows developers to transact and create contracts on a single contract account.

Like the Secret Garden, it opens the gateway to user-friendly cryptocurrency wallet projects, facilitating greater adoption of digital assets.

EIP-4337

Ethereum Improvement Proposals (EIP), are improvement proposals that describe certain standards. This could be a basic protocol specification or smart contract standards for the Ethereum network.

Ethereum Request for Comment (ERC) is a type of EIP that is responsible for defining application-level standards (contract and token standards). An EIP becomes an ERC only when validators approve such a change.

This is how EIP-4337 became ERC-4337, which is the latest ERC standard implemented on the Ethereum mainnet. ERC-4337 is a stepping stone to creating the long-awaited account abstraction. In this case, we use EIP-4337 interchangeably with ERC-4337 – both terms mean the same thing. However, you need to know that EIP-4337 was proposed in 2021 and was approved in 2023 as ERC-4337.

Discussing the highlights of today’s lesson, let’s further mention account abstraction. It moves digital assets into smart contract wallets. This is an improvement in wallet design, as such a wallet can be customized to suit all your needs, just with a smart contract.

What Is the ERC-4337 Standard and Why Do We Need It?

As we mentioned in the paragraph above, ERC-4337 was proposed in 2021, as EIP-4337. Its goal was to establish account abstraction. It was implemented on the Ethereum mainnet in 2023, already in the form of the aforementioned ERC-4337. A high bar was immediately set for it. This standard is expected to introduce user-friendly cryptocurrency wallets.

In the Ethereum network, account abstraction merges two existing accounts: an external account (EOA) and a smart contract account. This merger results in a single contract account that is capable of executing transactions and creating contracts at the same time. ERC-4337 provides high functionality of the wallet already at the level of smart contracts. It also facilitates the configuration of services such as multi-component authentication and automatic payments.

Now it’s time to answer a very important question – why do we need this new standard? Before the answer is given, let’s look at the Ethereum network itself. The protocol of this ecosystem uses an account-based model. What does this mean? That the protocol itself tracks and updates available account balances as transactions are confirmed.

You also need to know that there are two types of accounts in the ecosystem:

  • External accounts (EOA), which are owned and controlled by users.
  • Smart contract accounts, which are in practice smart contracts. They are also implemented on the network.

The common function of these accounts is that they can store and send assets. Most of the existing and known wallets, operating on the Ethereum network, are EOA wallets. So they are limited regarding private keys, signing of all transactions, etc. The configuration procedures of such a wallet and security measures are not user-friendly. Worst of all – losing the seed means losing access to the entire wallet. ERC-4337 is tasked with removing such a limitation altogether. Contract wallets are wallets managed by smart contract accounts. The new standard combines the function of two accounts, removing virtually all constraints.

Benefits of  ERC-4337

First of all – decentralization. ERC-4337 enables account abstraction with all the features of decentralization. It prevents instability, has no single points of failure and is immune to censorship.

No hard forks. Thanks to its mempool structure, ERC-4337 can be adopted in any network. It does not cause changes to the consensus protocol.

Signature support. This is another feature of ERC-4337. The standard supports signature schemes that are more efficient and user-friendly (Schnorr, BLS, Lamport, Winternitz).

Gas abstraction. ERC-4337 allows users to have network fees paid with ERC-20 tokens, instead of ETH. Moreover, with this standard, we can request any third party to cover such fees in full.

What Does the New Standard Mean for New Users?

It solves all the complications associated with cryptocurrency wallets. No such problems equals increased adoption of digital assets. What else does the EIP-4337 make possible?

  1. Faster and more secure wallet setup. In this case, you don’t have to write down your seed phrase. Setup is quick and easy with just a few clicks.
  2. You can easily recover your account. Lose the seed? No problem! Multi-factor  authentication and recovery of your account is now easily possible.
  3. A cryptocurrency wallet that is user-friendly. You can also personalize such a wallet easily. Automatic payments? Here! Pre-approval of transactions? No problem! These and other possibilities with ERC-4337 are endless!
  4. Improved safety. The ERC-4337 standard reduces the risk of human error. You no longer need to hide your seed phrase and fear losing your wallet if it gets into the wrong hands!
  5. Gas abstraction, otherwise known as gas flexibility. Any wallet that is powered by ERC-4337 allows you to pay gas fees with ERC-20, other tokens, and even fiat currency!

Summary

Let’s not kid ourselves – cryptocurrency wallets are problematic. And we’re not just talking about new users, for whom it can seem like alien space, but about even the more experienced ones.

Worrying about the seed phrase or private keys – many of us spend sleepless nights. Behind the scenes, we hear that the whole process should be more pleasant and simpler.

ERC-4337 arrives to do away with all that we mentioned above. The impact of this standard on users and their experience will be huge. It is definitely something worth paying attention to and following.

Complete today’s lesson!

  1. Ethereum – what is it and how does it work? [BEGINNER LEVEL]
  2. PA cryptocurrency wallet – what is it? [BEGINNER LEVEL]
  3. What is the seed phrase in cryptocurrencies? [BEGINNER LEVEL]
  4. Everything you need to know about gas fees in Ethereum! [BEGINNER LEVEL]