A quick and simple guide to account abstraction and EIP-4337

Account abstraction (AA) has become a significant topic in the cryptocurrency space due to its potential to revolutionize how individual accounts are managed on Ethereum. This guide aims to provide a comprehensive overview of AA and its implementation through EIP-4337.

What's account abstraction?

Account abstraction refers to the process of separating transaction sources from signatures and upgrading Externally Owned Accounts (EOAs) to Contract Accounts (CAs). This change allows smart contracts to control EOAs, enabling the creation of smart contract wallets. The result is improved account management flexibility and enhanced user experience.

Ethereum's history with AA

The concept of AA was initially introduced in Ethereum Improvement Proposals (EIPs) 2938 and 3074 in 2020. However, these proposals were put on hold due to the extensive changes required to the Ethereum protocol. EIP-4337 emerged as a solution that could implement AA without necessitating protocol changes.

A deep dive into EIP-4337

EIP-4337 introduces several key components to enable AA:

1. UserOperation: An object that represents a user's intent to send a transaction.
2. Entry point: A contract that executes bundled transactions of user operations.
3. Bundler: A node that handles user operations as bundle transactions.
4. Wallet contracts: User-owned smart contract accounts.
5. Wallet factory: A smart contract that creates new smart contract wallets on-demand.
6. Aggregators: Helper contracts for validating aggregated signatures.
7. Paymasters: Contracts that enable gas payment flexibility.

Understanding the flow of transactions

The transaction process under EIP-4337 involves several steps:

1. The user creates a UserOperation.
2. The UserOperation is sent to a bundler.
3. The bundler groups UserOperations and sends them to the entry point contract.
4. The entry point contract validates the UserOperations.
5. Smart contract wallets execute the transactions using the ExecuteUserOp function.

Comparison of EOA, MPC, and AA crypto wallets

Each wallet type has its own characteristics:

• EOA wallets: Low creation cost and gas fees, but limited functionality.
• MPC wallets: Similar to EOA wallets but with improved security features.
• AA wallets: Higher creation cost and gas fees, but offer multi-currency support, batch transactions, and improved security.

How does EIP-3074 AA differ from EIP-4337 AA?

EIP-3074 proposed introducing new OpCodes to enable AA, which required consensus layer changes. While it offered some advantages, such as allowing EOAs to act like smart contract wallets, it also had significant drawbacks, including the need for a hard fork.

The introduction of EIP-5003

EIP-5003 builds upon EIP-3074 by introducing the AUTHUSURP OpCode, which allows the deployment of code at EIP-3074 authorized addresses. This proposal works in conjunction with EIP-3607 to enable existing EOAs to upgrade to CAs and migrate to more efficient signature methods.

The bottom line

Account abstraction, particularly through EIP-4337, represents a significant step forward in improving the Ethereum user experience. By addressing pain points such as transaction complexity and gas payment flexibility, AA has the potential to lower the barrier to entry for new users and enhance the overall interaction with the Ethereum ecosystem.

As the cryptocurrency landscape continues to evolve, developments like AA demonstrate the ongoing efforts to make blockchain technology more accessible and user-friendly. The implementation of EIP-4337 has marked a turning point in how users interact with Ethereum and has paved the way for wider adoption of blockchain technology since its introduction.

FAQ

What is the difference between EIP 4337 and 7702?

EIP-4337 was deployed in 2023 for Account Abstraction, while EIP-7702 is part of the future Pectra upgrade. EIP-4337 is already implemented, but EIP-7702 is planned for future implementation.

What is the protocol ERC-4337?

ERC-4337 is a protocol enabling account abstraction on Ethereum, allowing for smart contract wallets and improved user experience without changing the blockchain's core protocol.

What is 4337?

ERC-4337 is an Ethereum standard for account abstraction, enabling smart contract wallets without private keys. It enhances security and user experience in blockchain interactions.

Are EIP and ERC the same thing?

No, EIP and ERC are not the same. EIPs propose improvements to the Ethereum protocol, while ERCs define token and smart contract standards within Ethereum.