Cryptocurrency security is a top priority for every blockchain user. Nevertheless, the recurrence of testimonies on hacking and theft of assets present on digital wallets continues to pile up. Since then, the introduction of Account Abstraction on Ethereum could be a long-term solution.
Account Abstraction, or in French the account abstraction, is a new way of approaching the conservation of its crypto currencies. In development for several years on the blockchain Ethereum, this new paradigm should materialize in the coming days.
For now, the private key and public key system is almost intangible in the cryptocurrency ecosystem. Although there are some exceptions, creating a wallet from this key combination is the most popular way to enter the ecosystem.
Announced at WalletCon held in Denver, ERC-4337 implementation by the Ethereum foundation aims to deploy the new feature of Account Abstraction and increase the security of assets even if the private key is lost.
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The Account Abstraction deployed by the ERC-4337 standard
While expected as a major change, Account Abstraction was deployed very easily by Ethereum developers. This simplicity is due to the simple addition of a smart contract called EntryPoint to deploy the new ERC-4337 standard.
Moreover, according to sources close to the development of Account Abstraction, EntryPoint has been the subject of a audit full security ahead of its official introduction. In fact, many infrastructure providers have already announced their intention to support this new standard within their services.
Account Abstraction: A New Paradigm for Cryptocurrency Custody
To understand the innovation brought by Account Abstraction, it is necessary to bear in mind that there are two types of accounts on Ethereum. On the one hand the contract accounts (CA) and on the other the accounts held by third parties (EOA).
EOA is the classic mechanism for sending and receiving crypto currencies on its wallet. A user receives a pair of private and public keys and can interact with blockchain by sharing their public key. Thus, only the account owner with access to the private key can issue transactions.
However, this method is particularly dangerous since the private key is the only bulwark against misappropriation of its funds. Thus, in the event of loss or compromise of the private key, the assets present on the account will be seriously endangered.
Conversely, the CA does not use the private key system. Indeed, each account created from this mechanism is entirely controlled by a code allowing remove transaction signing logic. Therefore, even in the event of account compromise, it will be impossible for a malicious actor to initiate transactions without having access to the pre-established conditions.
Development still in its infancy
Vitalik Buterin explains that “we’re setting a real path for account abstraction, something we’ve always wanted, but haven’t been able to achieve.” ERC 4337 speeds up this process and imagine many different possibilities for the future of Ethereum.
Concretely, the Account Abstraction brings many additional functionalities allowing to to secure in depth the assets present on a portfolio of crypto currencies. For example, it will become possible to add different options account recovery in case of loss of a private key. One can imagine a system in which another key takes over from the original key if the latter fails.
In the same way, thanks to the Account Abstraction, it will be possible introduce daily withdrawal limits or execute multiple transactions within a single transaction. In reality, the options are nearly endless since they are simply based on technical feasibility.
According to some specialists in the field, Account Abstraction must be seen as improved user experience of self-custody of cryptocurrencies. For sure, this feature is a new paradigm, but many obstacles still stand in the way such as the impossibility of converting, for the moment, an EOA account to a CA.
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