Account Abstraction - ERC 4337 and Smart Privacy to Open Doors for Unique Use Cases Together

Anyone who follows Vitalik Buterin knows the significant stance regarding account abstraction by Ethereum. It is not new, and, in fact, Vitalik wrote about ERC 4337 way back in 2021. During the recent EthCC Paris, it has once again come to the forefront of conversation in the web3 space.

So, what is this account abstraction? Simply put, it is a unique solution that implies using EVM code to not only implement application logic but also logic verification. The immediate impact is evident. It has immense applicability in web3 privacy. As the pioneer of a privacy-first approach and with smart privacy solutions in its arsenal, Oasis Network has much to contribute.

At Oasis Rendezvous on the sidelines of the EthCC event in Paris, along with Stackup & Biconomy, Oasis got the discussion ball rolling on account abstraction in web3. A key takeaway from that lively discussion was when Oasis introduced the concept of smart privacy and how cross-chain solutions can benefit account abstraction. The Oasis Privacy Layer or OPL, which is a cross-chain tool offering customizable confidentiality to any web3 dApp on any EVM chain, is uniquely suited to enable account abstraction solutions.

By definition, account abstraction in web3 is a level-up over externally owned accounts or EOAs as it enhances the flexibility & security of smart contract accounts. The ability to make them confidential by building them with Oasis Sapphire's confidential EVM runtime is an added advantage.

Let's take a deep dive into the 10 most intriguing use cases.

1. Seedless Accounts - Web3 adoption is often stalled as newcomers stumble at the very opening step of account creation where multi-word mnemonic or seed phrases are critical to security. With account abstraction, there can now be seedless accounts that need no seed phrases, provide maximum protection, and create ease of use and accessibility for web3.
2. Web Authentication Standard - Managing multiple logins in web2 is pretty much commonplace but it is complicated in web3. Account abstraction in conjunction with web authentication can simplify the process. Embedding the private key authentication into browser logic, account abstraction can confirm matches when smart contract wallets interact with dApps, and seamless login is enabled.
3. Multi-Signature Authorization - DAOs and multi-sig wallets need multiple entities to manage a single account or make collective decisions. Account abstraction is the better way to go instead of multi-part computation wallets as instead of setting the signers once only, customization can now be done at will.
4. 2FA Security Mechanism - Unlike web2 where two-factor authentication as an extra layer of account protection is available more often than not, enabling the same in web3 was not possible prior to implementing account abstraction.
5. Account Inheritance/Social Recovery - This was a topic of discussion recently and suggestions that poured in were outlandish, from one to the next. Account abstraction can ease the process with inheritance functionality which is enabled much like traditional account nominee creation - only here the beneficiaries are set to securely access digital assets.
6. Gas Abstraction Mechanisms - Never-lowering gas fees is a hassle all web3 users encounter, and is nearly impossible to circumvent. Account abstraction can help bring down transaction costs as the fees can be payable in different stablecoins.
7. Transaction Batching - This is already happening in web3, however, account abstraction can make this feature even better than now.
8. Session Keys - Understanding this can be made easy with an example from gaming. With account abstraction, users can set temporary session keys that enable time limits or spend limits so that when the time expires or the spend cap is reached, the wallet access is automatically revoked.
9. Recurring & Scheduled Payments - Like traditional standing instructions or auto-billing, account abstraction can automate blockchain payments making manual web3 subscription management obsolete.
10. Transaction Simulation - This utility of account abstraction is very important as web3 contracts can be test run prior to actual crypto transactions. This is helpful for cost-checking and understanding predicted outcomes so that users can make informed decisions about whether to proceed or not.

Recently, Oasis conducted a Twitter Space with Empyreal and while discussing unique use cases for web3 privacy, account abstraction became a big part of the conversation. So, as we gear up for a more privacy-enabled tomorrow in the web3 space, which of the account abstraction use cases do you think will become a huge hit?