Account abstraction: The next narrative to lead a billion users into crypto

Written by: Ignas

Compiled by: Deep Tide TechFlow

There is a hot new narrative that has the potential to drive mass adoption of Web3. This is not just a fleeting trend, but a powerful way that is changing how we interact with Web3. In this article, crypto researcher Ignas will introduce some of the latest developments in account abstraction and GameFi, and explore how to make this narrative more popular to attract more users into the crypto world. Here is the original text.

My girlfriend recently bought cryptocurrency for the first time. As I gradually introduced her to the world of DeFi, I became aware of the challenges that newcomers face:

• Mnemonic phrases;

• High gas fees;

• Poor user experience;

• Cryptocurrency jargon, etc.

Recent developments and projects are fundamentally changing the way we use cryptocurrency. Among them, EIP-4337 is a key catalyst. This upgrade takes account abstraction to a new level.

The benefits of ERC 4337 account abstraction are revolutionary:

• Two-factor authentication;

• Mobile transaction signing;

• Monthly spending limits;

• Mobile as a hardware wallet;

• Decentralized wallet recovery;

• Automatic payments, etc.

It is Web3, but with a Web2 user experience.

"Account abstraction" sounds unappealing, so it is suggested to change it to "smart accounts." But it is more than that—several cryptocurrency projects are working to bring cryptocurrency to the masses through revolutionary user experiences. Here are the top projects:

Avocado: Breaking Down Barriers

Instadapp's Avocado is bringing blockchain aggregation and next-generation smart wallets.

It has the potential to become an all-in-one dApp for DeFi and NFTs, without worrying about which blockchain to use and which tokens are needed to pay gas fees.

Biconomy: Simplifying the Experience

Biconomy brings a one-click experience to dApps:

• Easy onboarding with social login and fiat entry;

• Transactions without gas fees or any token payments;

• Handling Web3 operations on behalf of users;

• A gasless experience for cross-chain tasks.

dApps only need to integrate it.

Argent Wallet: Enhancing Security

Argent Wallet is a groundbreaking smartphone wallet.

If you use Metamask, you will find it very refreshing to create and recover wallets using email addresses and phone numbers.

It is an all-in-one investment application for staking, lending, token swapping, and more.

Argent is not a new product, but I believe it is preparing for more adoption:

• EIP-4337 account abstraction;

• L2 adoption with low gas fees and fast transactions;

• Avocado for blockchain aggregation and USDC-denominated fees;

• zkSync Era launch + airdrop?

Smart wallets can train new DeFi users without them needing to know what Metamask is.

AmbireWallet: Improving the Experience

Wallets like AmbireWallet offer an improved user experience:

• Email login;

• Two-factor authentication protection;

• Built-in transaction batching;

• Stablecoin payments for gas fees;

• Transaction simulation.

MetaMask recently announced two significant changes:

• First, MetaMask Snap will transform the wallet into a platform. It will support any blockchain to accommodate a multi-chain future, such as Bitcoin or StarkNet. Through Snap, anyone can add new features to the core wallet.

• Second, the MetaMask SDK on the Unity Asset Store enables developers to link games with the MetaMask wallet, bringing Web3 functionality into games. Used with smart accounts, it transforms "crypto games" into "games with crypto features."

In my view, these changes will be a huge boost for the development of GameFi.

Immutable

The Immutable protocol is helping GameFi achieve mass adoption. It is the fourth largest Layer 2 with a total value locked (TVL) of $136 million. It provides zero gas fees, instant transactions, and scalability for games, applications, and markets, greatly improving the user experience.

Additionally, Immutable announced the launch of Immutable zkEVM powered by Polygon.

What stands out to me the most is the tokenomics.

$MATIC will become the "staking token," while Immutable's $IMX will become the "core gas currency." The competition to become the layer for mass adoption is intensifying. zkSync supports native account abstraction on the zkSync Era mainnet, with all the advantages of blockchain-level AA wallets. Similarly, StarkNet's AA supports features like 2FA, improved payments, and any token as gas.

Safe

Next, Safe has launched the Safe{Core} account abstraction SDK, making self-custody simple. Any dApp can integrate Safe, transforming its application into a smart account. I also like their slogan "Reclaim Ownership."

In Conclusion

This is a powerful narrative to bring a new wave of users into the crypto world. We now have all the necessary tools, so I really hope this narrative can take off.

The protocols that successfully achieve this will become the next Amazon, Facebook, or Apple.

I think terms like "account abstraction" or even "smart accounts" are not trendy enough to capture the community's interest.

Terms like "real yield" can draw attention to dApps that generate real returns through actual usage.

I sincerely hope there will be an equally powerful term to describe "account abstraction," leading a billion people into the crypto world.