Ethereum has made a significant leap forward with the launch of the ERC-4337 standard, enabling accounts to be abstracted from the blockchain. The announcement was made by Ethereum Foundation security researcher Yoav Weiss at WalletCon in Denver.
The new standard offers a host of benefits for users, including gasless transactions, recoverable wallets, and bundled transactions, making it easier for new users to onboard into the world of crypto without needing to understand complicated seed phrases or the technical process of setting up a wallet.
Here’s a closer look at what ERC-4337 means for Ethereum users:
Smart accounts and the future of Ethereum
Smart accounts, enabled by the ERC-4337 standard, are now available on Ethereum and are expected to help mainstream adoption by finally making crypto user-friendly.
The new standard allows for any authentication logic to be used, not just private keys. This means that two-factor authentication, monthly spending limits, and even session keys to play blockchain games can be used without constantly having to approve transactions.
ERC-4337 enables gasless transactions, which means that new users won’t need to spend ether to send transactions, making it easier to onboard new users without needing to worry about the cost of gas.
One of the biggest benefits of ERC-4337 is the ability to create recoverable wallets. Users who lose their phone or device can use time-locked social recovery of their account via a group of trusted friends or even a commercial service.
Cryptographic keys stored on smartphones
The new standard also enables the unique cryptographic keys used for cryptocurrency to be stored on standard smartphone security modules, upgrading them to de facto hardware wallets.
However, the screen remains a security issue compared with traditional hardware wallets, and gas costs could be prohibitive on the mainnet initially, although other EVM chains and Layer 2s have low enough fees to make it viable.
The Ethereum Foundation announced that the EIP-4337 had passed a security audit, and the infrastructure has been deployed. The Foundation also announced $300,000 in grants for account abstraction projects.
The best part about ERC-4337 is that it’s permissionless. Anyone can deploy ERC-4337 on any EVM-compatible chain. It works on any EVM chain today, which means that it doesn’t require the blockchain itself to do anything.
The launch of ERC-4337 is a game-changer for Ethereum and is expected to have a significant impact on the future of crypto. The new standard will make it easier for new users to onboard, while also offering additional security measures to protect users’ funds.
The potential for smart accounts is limitless, and we can expect to see more innovation in this space as developers start to explore the possibilities of ERC-4337.
