Deep Dive into Account Abstraction and Use Cases

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This week we deep dived into account abstraction (ERC 4337) and its use cases — joined with @EmpyrealArb Let’s deep dive further into what account abstraction is, and its practical use-cases: 🧵

Account abstraction in Web3 enhances flexibility & security using smart contract accounts over EOAs The blockchain only sees smart contracts for programmable interactions Users enjoy simpler UIs, driven by smart contract wallets Let’s explore some examples of AA in action 👇

Seedless Accounts 🌱 Traditionally in Web3, mnemonic or seed phrases protect accounts, creating entry barriers for newcomers AA offers seedless accounts—no seed phrase, upping security & simplifying user access

Web Authentication Standard 🔒 Web auth often demands managing multiple logins, complicating things With WebAuthn & AA integration, this process is simplified Private key authentication is embedded into browser logic, with AA confirming matches

This means that your smart contract wallet interacts directly with the app you're accessing—eliminating the need for tedious logins AKA an instant authentication experience

Multi-Signature Authorization 🖋️ AA can enable multiple entities to control one account — perfect for DAOs & groups needing collective decisions Plus, unlike MPC wallets where signers are set once, you can freely modify them

2FA Security Mechanism 🔐 Two-factor authentication (2FA) is a second layer of security we see in many online platforms today AA makes 2FA possible in Web3, adding an extra protective layer for accounts If someone gets your private key, this they still can't access your assets

Account Inheritance/Social recovery 💼 Life is unpredictable, which is why inheritance is important AA enables "inheritance" function, allowing user to set up "beneficiaries" for their digital assets, ensuring they're passed on securely in unexpected events

Gas Abstraction Mechanisms 🚫 Gas fees (transaction costs) in Web3 can be a pain AA offers solutions to reduce these fees & even allows payment in different tokens (e.g. stablecoins), saving users money & hassle

Transaction Batching 🎒 Instead of doing multiple transactions separately & incurring high costs each time, AA allows grouping them into one Kind of like buying groceries in bulk rather than separate trips to the store

Session Keys ⏰ AA enables temporary keys for set periods or interactions (time limits, spend limits), granting short-term access & then expiring for safety e.g. a gamer setting a 30-minute session key, setting a spend limit without wallet confirmations each time

Recurring & Scheduled Payments 📅 With AA, you can automate blockchain payments—akin to setting up monthly payments for a bill This can be revolutionary for Web3 subscriptions, ensuring they never lapse

Transactions Simulation 🔍 Before you send money or interact with a contract in Web3, AA lets you "test run" it This can help users predict outcomes, check costs, and make informed decisions

At Oasis, we're pioneering new use-cases for account abstraction with Smart Privacy, powered by Sapphire (Confidential EVM) and the Oasis Privacy Layer Learn more about AA in our recent Space with @EmpyrealArb below: twitter.com/i/spaces/1OdKrzXYqPnKX?s=20