At the beginning of the month, Ethereum — the blockchain network much-loved for storing non-fungible tokens (NFTs) — underwent an upgrade known as “ERC-4337”. The feature introduced numerous improvements to the blockchain network’s ecosystem.
One of the most significant enhancements was adding an audited version of the Ethereum Foundation’s ERC-4337 account abstraction standard.
The deployment of this new token standard was pretty “hush-hush”. But here’s everything we know:
About Ethereum’s Most Recent Token Standard
ERC-4337, otherwise known as “smart accounts” or “account abstraction”, has the potential to offer several benefits. These include account recovery and group-access wallets. Additionally, it can allow for bundled and sponsored transactions with discounted fees.
One significant perk of ERC-4337 is that it eliminates the need for users to manually create a traditional wallet and store their private key or seed phrase. Instead, keys are stored locally on the user’s hardware security module (HSM), just as secure as a self-custodial crypto wallet.
The idea behind ERC-4337 is to make it easier for new users to enter the world of decentralized cryptocurrencies. They will no longer need to learn complex seed phrases or the technical process of setting up a wallet, which can annoy some.
Instead, using account abstraction, cryptographic keys for storing cryptocurrencies are storable on smartphone security modules. Of course, this remains a security concern. However, they will be safely store in hardware wallets.
Account abstraction can also implement on any EVM-compatible blockchain. For now, usable chains are BNB Smart Chain (BNB), Polygon (MATIC), and Avalanche (AVAX).
Hardware wallets, including Ledger Nano, have one key that controls an account. If users’ keys are lost or compromised, all wallet tokens are at risk. Account abstraction aims to make the performance more adaptable to users’ needs.
Further Advantages and Implementations of ERC-4337
Other perks of ERC-4337 include offering advanced features, like two-factor authentication, spending limits, and a ‘Social Account Recovery’ security feature for all users.
This new token standard allows numerous features that improve the entire user experience for those interacting with Ethereum. For example, users can also sign transactions using a face scan or fingerprint, set monthly spending limits, and play games on-chain without constantly having to approve transactions.
Furthermore, users can trust their friends to help recover their accounts or commercial services if they misplace their devices. This new feature gives users all of the recovery features a bank does without having to trust a bank. Of course, also with numerous advantages thanks to crypto.
Already, this new technology integrates into zk-Rollup Layer2 solutions from zkSync and StarkWare. In addition, Visa also develops a crypto-bill payment system that uses it.
ERC-4337 has been in development for stages for years. Finally, it has been bought to light, once receiving the necessary support from the Ethereum Foundation.
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