DeBI - Decentralised Banking is coming...
Utpal Nath
Strategy Consultant | Social Enterprises & Sustainability | Decentralisation | Web3 | Token Economics | Advisor | Board member | Speaker | Talks about #sustainability #impact #publicaffairs #decentralisation
The next billion users of decentralized systems are not going to write 12 words on a piece of paper. Normal people don’t do that… they now have a better user experience like digital banking, so they shouldn’t need to think about cryptographic keys.
After 9years in dev and testing, a fully-audited version of the ERC-4337 standard was finally made live by Ethereum Foundation that allows accounts to be abstracted from the blockchain. With this standard implemented, we can now possibly have gasless transactions, recoverable wallets, two-factor authentication, monthly spending limits, and smart accounts. It also enables the unique cryptographic keys used for cryptocurrency to be stored on standard smartphone security modules and gives users the opportunity to experience the UX of a bank without having to trust the bank as a third party, how awesome is this!
This could be a game changer as the biggest brains in Web3 start to embed Crypto Wallets with tried-and-tested banking functionalities such as:?
ERC-4337 has the potential to provide the same UX of a bank — where e.g. a friend or a lawyer can always help recover your account via Social Recovery.
领英推荐
Account Abstraction means one can add more controls or features to the wallet. e.g. adding two-factor authentication to spend more than say $ 5,000 worth of ETH. The measure also allows users to use the cryptographic signature of their choosing, and it also authorizes transactions securely through cell phones. For more sophisticated users, it could mean adding more controls or features to their accounts.
With account abstraction, the idea would be to make the account flexible to match users' needs.
The standard has been implemented through the smart contract EntryPoint, which has been running for a few weeks already — and is designed to change how users interact with wallet services. Most of Ethereum’s existing wallets are externally owned accounts (EOA). And it even extends to hardware wallets, where only one key controls an account — meaning that if its key is compromised or lost, any tokens within the wallet would be, too.
#DeBI (decentralized banking) is coming…