Flash News: OKX Ventures Publishes Report on ‘Analyzing the Past, Present and Future of Account Abstraction’
SINGAPORE, Oct. 02, 2023 (GLOBE NEWSWIRE) — OKX Ventures, the investment arm of leading Web3 technology company OKX, has issued updates for the day of October 3, 2023.
OKX Ventures Publishes Report on ‘Analyzing the Past, Present and Future of Account Abstraction’
OKX Ventures today released its latest research report entitled ‘Analyzing the Past, Present and Future of Account Abstraction.’
The report offers an in-depth look into Ethereum’s account abstraction (AA) technology, which simplifies crypto transactions by enabling the creation of Web3 wallet accounts that conceal the more technical details of on-chain interactions behind a more accessible and user-centric interface. It explores AA technology’s key uses cases, provides examples of key projects in the market and proposes two main solutions for the future development of AA in a multi-chain environment.
Notable findings from the report include:
- Out of the 520,000 AA accounts registered on Ethereum, Arbitrum, Optimism and Polygon, 80% were created in the last two months. In particular, the Polygon and Optimism blockchains have experienced significant growth.
- AA technology’s main uses cases include its ability to simplify user operations and improve the usability of smart contract wallets. It also has the ability to improve the Web3 NFT experience, such as by enabling automated market monitoring and simplifying the trading process with AA. In addition, the social and gaming markets can benefit from AA by optimizing identity infrastructure and reducing the operational complexity of on-chain games.
- The AA market comprises two main participants: smart contract wallets and third-party infrastructure providers.
- Smart contract wallets are rapidly integrating the Ethereum Improvement Proposal (EIP) 4337, enabling features such as social recovery and gas abstraction. Meanwhile, third-party providers, such as StackUp and Biconomy, offer Bundler and Paymaster solutions for optimal user experience.
- ‘Bundlers’ are a special node that monitors an alternative mempool of user operations, by bundling user operations from multiple senders into a single transaction so they can be executed on a blockchain.
- With AA, the responsibility for paying these fees is delegated to a separate component called the Paymaster. The ‘Paymaster’ ensures that necessary funds are available to cover the gas costs associated with executing ‘user operations,’ a pseudo-transaction object that enables AA to work without requiring consensus-layer changes to Ethereum and Layer-2 blockchains that support ERC-4337.
- Smart contract wallets are rapidly integrating the Ethereum Improvement Proposal (EIP) 4337, enabling features such as social recovery and gas abstraction. Meanwhile, third-party providers, such as StackUp and Biconomy, offer Bundler and Paymaster solutions for optimal user experience.
- In the short term, the AA market’s main focus will be on expanding and establishing partnerships with Layer-2 solutions. The medium-term goal is to implement modular Bundlers and Paymasters, deploy SDKs and improve the user experience. In the long term, the conversion of externally owned accounts (EOA) to smart contract wallets will be a key area of focus.
- The AA market has significant growth potential, with the possibility of smart contract wallets reaching up to 310 times the current market size. However, further innovation, business development and monetization models are required to unlock this potential.
To read the full report, click here.
Note: The report’s findings are based on an analysis of existing data from various sources, including Dune, Paradigm and 4337Mafia. For a full list of the report’s sources, check out the reference list here.
For further information, please contact:
[email protected]
About OKX Ventures
OKX Ventures is the investment arm of the second-largest crypto exchange by trading volume and Web3 technology company OKX, with an initial capital commitment of USD 100 million. It focuses on exploring the best blockchain projects on a global scale, supporting cutting-edge blockchain technology innovation, promoting the healthy development of the global blockchain industry, and investing in long-term structural value.
Through its commitment to supporting entrepreneurs who contribute to the development of the blockchain industry, OKX Ventures helps build innovative companies and brings global resources and historical experience to blockchain projects.
Find out more about OKX Ventures here.
Disclaimer
THIS ANNOUNCEMENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE, SELL, OR HOLD DIGITAL ASSETS. DIGITAL ASSETS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.
