- The upgrade was implemented via the EntryPoint smart contract and announced at ETHDenver.
- The upgrade improves usability and scalability by enabling fee payment with any token, different signature schemes, and smart accounts.
Ethereum, the second-largest cryptocurrency by market capitalization, has activated a major upgrade known as account abstraction. Ethereum Foundation security researcher Yoav Weiss announced the development at WalletCon, an event related to ETHDenver, one of the largest Ethereum hackathons in the world. The upgrade is expected to improve Ethereum’s usability and scalability.
Data from Etherscan, a blockchain explorer, confirmed by Weiss, indicate that the new standard, officially known as ERC-4337, was implemented via a smart contract named EntryPoint. On March 3, Professor John Keating, CEO of Fiscal Solutions, summarized the benefits of account abstraction on Ethereum.
Account abstraction allows users to customize their own accounts on Ethereum instead of having to use predefined account types. Currently, there are two types of accounts on Ethereum: externally owned accounts (EOAs) and contract accounts. EOAs are controlled by private keys and can send transactions and hold ETH. Contract accounts (CAs) are controlled by code and can execute smart contracts.
However, these have various limitations. For example, EOAs cannot pay transaction fees with tokens other than ETH, while contract accounts cannot initiate transactions by themselves. Account abstraction aims to unify these two types of accounts into one single type that can have any logic and functionality desired by the user.
According to Keating, one of the main benefits of account abstraction is that it can make Ethereum more user-friendly and accessible. For instance, users can create accounts that can pay fees with any token they want or use different signature schemes for security purposes. Users can also create smart accounts that can perform complex actions without requiring manual intervention.
Another benefit of account abstraction is that it can enhance Ethereum’s scalability and efficiency. By allowing users to customize their own account logic, account abstraction can reduce the complexity and redundancy of transactions on the network. For example, users can create batch transactions that combine multiple operations into one transaction, saving gas fees and reducing congestion.