Quick Summary:
- Account Abstraction is the only thing that can make crypto wallets foolproof as they are fundamentally broken.
- People are reverting back to crypto wallets after crypto exchanges fail as assets’ custodial of the users’ funds.
Now that we have ruled out exchanges to keep funds, web3 wallets are the best possible right now. We have covered the story of scammers cloning Web3 wallets like MetaMask to defraud people. Therefore, crypto wallets can be a safer option but not perfect. These Web3 wallets used to be more secure when there were no DAOs and dApps to interact. As people try to interact with these web3 products, malicious Smart contracts can gain access to their crypto assets.
Fear of losing private keys, and getting locked out forever and this single point of failure is enough to turn down the entire idea.
A quick escape from this is using the cold wallet which is fairly secure but you have to give up convince for security as hardware wallets are comparatively hard to use. Moreover, there’s still a chance of getting rugged by malicious contracts. So how we can actually solve the crypto assets? Luckily there’s a way out, the Account Abstraction.
What is Account Abstraction?
Abstraction is the term used in computer programming when programmers hide information to increase the efficiency and security of the code. Account Abstraction or AA is used in crypto to program the crypto wallets by correcting its fundamental errors.
EIP-4337 is the latest from Ethereum core devs trying to create a standard But you can access it today at the application layer, with the largest example being safe.
What is Account Abstraction?
— Argent (@argentHQ) October 19, 2022
AA turns every account into a smart contract with its own logic. This is huge because it enables everyone to have an account adapted to their needs, with seamless compatibility! https://t.co/004hQMSC7Y
What benefits Account Abstraction can offer?
The externally owned accounts are a threat to the future of blockchain as malicious smart contracts can still play their role. With account abstraction though, people can program their wallets to do whatever they want.
- Add a daily spending limit.
- Daily withdrawal limit
- Add white crypto addresses to claim the private key if the owner is locked out for some reason.
- Add a white address to only connect the wallet with a few trusted websites like Opensea or Uniswap.
You can actually program any behavior you want – the sky is the limit.
Conclusion:
Bitcoin and then other cryptocurrencies were meant to be decentralized, and free from monopolists. therefore, any centralized entity dreaming to take control is destined to fail. Blockchain is about decentralization and the Account Abstraction is the only way forward.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
