Unleashing the Potential of Blockchain with ERC-4337

Intro

Blockchain technology is said to be a game-changer for many industries, and this idea has been going around for quite some time. But for many years, the intricacy and sophistication of the technology have been obstacles to its widespread adoption and acceptance.?

But now, with the introduction of a new protocol, the ERC-4337, we are about to witness a major change as blockchain should become more approachable and available to more people.

In this article, we'll discuss the ERC-4337 protocol improvements and explain how they make it simpler for organizations and individuals to use blockchain technology.

ERC-4337 main features

Vitalik Buterin, who helped start Ethereum, and other developers, came up with ERC-4337 in 2021 to set up account abstraction. Its usage started on the Ethereum main net in March 2023, with user-friendly crypto wallet designs expected to follow.?

The new Ethereum standard seeks to enable the creation of more flexible and powerful wallets for users of this blockchain and its various services.

One of the most recent updates within Ethereum is known as “Account Abstraction” implemented following the standard ERC-4337.

Its goal is to enable the creation of an infrastructure that can offer smart accounts controlled by smart contracts. In this way, users of these accounts can enjoy unique features such as:

• Key recovery
• Automatic and recurring payment system
• Sponsored gas rates (at zero cost to the user)

Moreover, the new ERC-4337 makes it easier to know how data is stored on the Ethereum blockchain. Instead of using low-level tasks that demand a lot of technical knowledge, it uses smart contracts to manage storage fees and keep prices fair.

In this procedure, validators verify user data and transactions before combining them into a single Ethereum block transaction.?

Each transaction also pays for the validators, which covers the cost of gas.

This system makes it easier for organizations, businesses, and consumers to use blockchain technology without having to know how it works. It does this by making it easier to store data and by making sure prices are fair.

All the aforementioned is done simply, using a single standard, without sacrificing decentralization in account control.

What advantages does the implementation of ERC-4337 in Ethereum and its wallets offer???

1. Account Recovery

The loss of access to accounts, such as losing data from a seed phrase or hardware wallet, is a common issue that leads to the loss of millions of euros. But the ERC-4337 standard provides a way out by using smart contracts to recover the account. For example, you could schedule the return of tokens when the account has been inactive to a secondary account given at registration. You could also program the wallet with conditions that make it easier to get the money back. For example, you could sign a transaction with a specific message and destination address and send it to that address. The smart contract can then read the message and send the balance to the address you gave it.

2. 2FA authentication

The ERC-4337 lets transactions happen under certain conditions, like setting limits on how much can be spent on shared accounts and requiring two signatures for over-the-limit transactions. Customization is possible to meet the specific needs of users or platforms.

3. MultiChain Support

Another advanced property of the ERC-4337 is support for multiple strings. This is possible since it is a smart contract built on the capabilities of Solidity and EVM. This means that the ERC-4337 standard can be used on any network that supports these two technologies.

So, networks like Polygon or Gnosis can use this feature to add more functionality. This is already happening on the testnets of this and other EVM-compatible networks.

Can this innovation widen the use of the digital product passport?

The ERC-4337 innovation can increase the use of blockchain digital product passports because it makes digital assets tied to a product safer and easier to manage.

But the security of these digital product passports is a big problem because they contain sensitive information. By offering a safe means to store and manage digital assets connected to a product, ERC-4337 can help allay this worry.

For instance, a manufacturer of goods can use ERC-4337 to create a smart contract-managed account and give the customer ownership of the account. These digital assets, which are essential for maintaining the value of the product, can be things like ownership certificates, warranty paperwork, and maintenance logs.

The smart contract will grant access to digital assets only to the right people. It can also offer a clear and automatic way to settle a dispute if there is one. Additionally, if the buyer loses access to their account, the contract can be set up to guarantee that the digital assets are not lost.

Final Thoughts

For new users, the terminology surrounding crypto wallets, such as seed phrases, private keys, and public keys, might be intimidating. For some people, using cryptocurrency wallets is still a difficult task. Many people agree that the crypto interface should be as simple as possible for the average user to increase its use.

ERC-4337 lays the technical groundwork for innovative cryptocurrency wallets. Based on what they can create, developers may alter the primary interface between users and cryptocurrencies. Yet, in the years to come, it will be necessary to monitor how ERC-4337 affects the user experience and cryptocurrency in general.