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‘Account abstraction’ supercharges Ethereum wallets: Dummies guide 

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Ethereum’s just-launched ERC-4337 ‘account abstraction’ standard is a game changer for user-friendly crypto payments and mainstream adoption.

For years, Bitcoiners have repeated the mantra be your own bank. But in truth, storing any type of crypto in a wallet has been a lot closer to stuffing cash under your mattress than to a complex financial institution like a bank.

Admittedly, its an improvement in that crypto can be transferred across the globe in minutes and it’s secured with cryptography but its also a lot less user-friendly than a bank and doesnt offer anywhere near as many features.

Your crypto could be stolen in a $5 wrench attack. You could lose the seed phrase and your funds forever. And thats if you were technically minded enough to even figure out the complicated process of setting up a wallet in the first place.

That’s all set to change with the surprise announcement at WalletCon in Denver this week of smart accounts, also known as account abstraction, on Ethereum and every other chain compatible with the Ethereum Virtual Machine (the EVM is the software responsible for executing Ethereum-based smart contracts).

Chains that can now take advantage of smart accounts include Polygon, Optimism, Arbitrum, BNB Smart Chain, Avalanche and Gnosis Chain.

Years in the making, the new ERC-4337 standard transforms a crypto wallet into something with all the features of a real bank.

It gives you the same features a bank would without having to trust a bank, says Ethereum Foundation security researcher Yoav Weiss, who was one of the co-authors of the Ethereum Improvement Proposal (EIP) alongside Vitalik Buterin.

Account abstraction is a way to appeal to the next billion users.

The benefits include two-factor authentication, signing transactions on your phone, the setting of monthly spending limits on an account, the use of session keys to play blockchain games without constantly having to approve transactions, decentralized recovery of wallets; smart accounts can be configured to autopay bills and subscriptions the list goes on.

Ledger co-founder Nicolas Bacca tells Magazine hes hugely impressed with the technologys potential.

Account abstraction will completely change the crypto user experience, he says.

Timeline 1Timeline of Account Abstraction (Yoav Weiss)

What does account abstraction mean?

Account abstraction is a complicated technical term for something that is actually incredibly user-friendly. Weiss and zkSync hope to replace it with the more descriptive term smart accounts.

Account abstraction is a confusing term, says Weiss. The accounts are abstracted from the network; they are not abstracted from the user. The user is using a very concrete wallet that does very specific things. From the users perspective, its not account abstraction its more like using a smart account.

Alex Jupiter, senior product manager at MetaMask, says account abstraction means different things to different developers.

In part, thats due to the fact that non-EVM scaling solutions, including StarkWare and zkSync, have implemented a modified version of ERC-4337 in the protocol itself, while Ethereum implements the standard on top of it.

“I would’t say Ethereum came up with a workaround that’s not quite as good,” Weiss explains. “We came up with a standard that can work everywhere, focusing on interoperability and defragmentation, and it can be implemented more efficiently at the protocol level, for example, by rollups.”

A variety of EIPs to add smart accounts to the protocol have been suggested but would have required a hard fork and did not get enough support, as theyd take attention away from more important upgrades, such as the Merge.

The native implementations upgrade all user accounts to smart accounts, while Ethereums new standard requires users to set up a new account. Weiss explains there will inevitably be a hard fork in future to enable the upgrading of all accounts, but itll take a long time to get there.

Account abstraction is extremely powerful.

Here are a few of the things you can do to make the most of it: pic.twitter.com/jWavGLzBhE

— John Rising (@johnrising_) February 25, 2023

What are the benefits of smart accounts?

One of the biggest benefits for adoption is that it allows new users to onboard into the decentralized world of crypto without ever having to worry about complicated seed phrases or understand the technical process of setting up a wallet.

They can simply open a smart account via a smartphone app using a fingerprint or face scanner.

While there are plenty of crypto wallets currently available as smartphone apps, they come with numerous security risks and are unsuitable for holding larger amounts of cryptocurrency due to the risk of hacks. But because smart accounts enable the cryptographic keys to be stored on the phones hardware security module, phone wallets can now be almost as safe as a hardware wallet.

Magazine tries out the onboarding process for noobs at StarkWare Sessions in Tel Aviv, Israel where gaming wallet Cartridge is handing out limited edition Briq NFTs.

The whole process takes less than 30 seconds and is completely intuitive. Users scan a QR code, choose a username, and then create a passkey using the phones fingerprint scanner.

Existing crypto users will need to reconceptualize what they thought a crypto wallet was and how to access it. The noncustodial Cartridge Controller is actually a web-based wallet that interacts with StarkNet. Instead of private keys, it makes use of Android or Apple Passkeys, which are both based on the WebAuthn standard, an intiative to standardize user authentication for web apps using public-key crytography.

CartridgeThe Cartridge stand at StarkWare Sessions. Source: Twitter

While a web wallet sounds like a scary proposition to long-term crypto users, Bacca is impressed with Cartridges implementation and says Ledger is building a similar web-based wallet that he says is secure thanks to WebAuthn.

Using a smartphone as a hardware wallet

There are a couple of catches to using a smartphone as a hardware wallet. The larger screen on a smartphone still presents a security risk, as it can be hacked to trick users into approving transactions.

However, this risk can be mitigated, as smart accounts enable users to set permissions requiring two-factor authentication for higher value transactions (using a hardware wallet, for example) or to set a daily, monthly or yearly spending limit from the account.

Bacca says Ledger is experimenting with this functionality now. So, for example, you could use your phone when you only want to do a small purchase or you could use your hardware wallet when you want to do a bigger purchase, and this can be scripted in the account, he says. We are prototyping a web application for that.

A bigger problem for using a smartphone wallet on Ethereum is that the security module uses a different cryptographic signing system (elliptic curve) than crypto. With smart accounts, the two systems can finally talk to each other, but it requires a lot of work and a lot of gas.

Motty Lavie, founder of StarkNets smartphone-based Braavos Wallet, explains it takes 240,000 computational steps to take advantage of the smartphone security module:


On Ethereum, to implement that, each transaction would be very, very costly. On StarkNet, this is a marginal cost thatll add a few cents to the transaction, which makes it viable.

Ludicrously high gas fees are a problem unique to Ethereum, however, and gas costs are more than low enough on all the other EVM blockchains and layer 2s for smartphone wallets to work just fine. Various teams are also working on gas-optimized versions of the process and, longer term, a precompile could be added to Ethereum, making the process a cheap EVM operation rather than a smart contract. (A precompiled contract carries out common cryptographic functions without using a lot of bandwidth.)

When these wallets gain traction and users get used to this great usability, itll be easier to promote this change in Ethereum itself, says Weiss. If we can add this precompile, itll be a game-changer for the ecosystem.

Timeline 2Timeline of Account Abstraction (Yoav Weiss)

How to recover your account

For crypto users who dont trust the cloud, smart accounts also provide other recovery options than a seed phrase.

If a user loses their phone, time-locked social recovery means a group of trusted friends or even a commercial service can help them recover it without putting the enclosed funds at risk.

You dont ever expect to lose access [to a bank account] because if you lose your password you can always call your bank, they will verify your identity and reset your password, Weiss explains.

So, you can actually use a recovery service that lets you reset the password for your mobile phone your wallet but they cannot steal your wallet; they can only help you recover it.

Motty LavieMotty Lavie, co-founder of Braavos Wallet at StarkWare Sessions. Source: Twitter

Braavos employs a version of a time-locked recovery process that involves creating a seed phrase. Unlike normal seed phrases, this one can only put in a request to regain access to the account after four days.

Now the benefit here is that if your phone indeed gets lost or wrecked or whatever, then, you can get control on your account back in four days.

But if an attacker stole your seed, then you would automatically get notified that someone has got control over your account, he adds, noting thats plenty of time to withdraw the funds before the hacker can get them.

Braavos is also working toward using zero-knowledge proofs to put the seed phrase under the hood so that the user can just interact with a decentralized forgot password-style prompt.

I think that will be a major move in terms of UX [user experience], he says.

Blockchain gaming smart wallet

Bacca explains that Ledger is already working along with Argent and Cartridge on plugins that enable gamers in StarkWare to set a session key, enabling numerous low-value transactions to go through automatically so they dont have to painstakingly approve each one.

You could load a small piece of code to your account so it will modify the way its acting with a specific game. So, you could say, If I am going to play that game… actions can be signed automatically for one hour, he says.

Thats why Im thinking that account abstraction will completely change the crypto user experience.

Happy to join the builders' council with chief strangeness officer @sylvechv and team – let's get this party open, decentralized and secure for all. More details https://t.co/7WUCrgCDwZ https://t.co/CNPNa1dLtM

— Nicolas Bacca (@BTChip) December 14, 2022



As an added bonus, smart accounts mean the game developer could decide to become the paymaster and cover the cost of the transaction fees to encourage use.

Transactions can also be bundled together to save on gas fees, explains Jupiter. Like a shopping cart scenario, Im going to reserve these 10 items and then pay for them all at once, he says.

MetaMask is building a new addition called Snaps that will crowdsource development of new features for the wallet. This will likely enable innovative uses of smart accounts that nobodys even thought of yet. A Snap that enables smart accounts was built at ETH India where it won Best ERC-4337 Tool.

Smart accounts make crypto subscriptions possible

Back in December, Visas crypto research team published a paper demonstrating how smart accounts on StarkWare can be used to pay mortgage, TV subscription and utility bills automatically from self-custodial crypto wallets.

They gave a hypothetical example of someone who wants to go on holidays and have their bills paid automatically from their crypto wallet, after they get paid in two weeks time.

You can already do this from bank accounts of course, or via a custodial wallet, but both require trusting a centralized service. The paper explains that the difficulty doing it on Ethereum is because it has two types of accounts: user accounts (also known as externally owned accounts, or EOAs) and smart contract accounts.

A user account, controlled by a private key, can send transactions, explains Visa Crypto. A smart contract has associated code that can be executed, however, a smart contract cannot initiate transactions on its own. Transactions must always originate from a user account and be signed by the user.

Visa CryptoVisa Crypto designed a method to autopay bills from crypto accounts. Source: Visa


So, if you get paid in crypto every two weeks, you have to manually initiate push transactions to pay each bill after funds are deposited into your wallet.

Smart accounts make pull payments, initiated by a biller, possible. So, for example, an electricity company could set up an auto payment smart contract on its website and list out its functions e.g., it will only initiate one transaction per month and set a maximum amount that it will charge. The user can then approve these conditional pull payments via their smart account, enabling automated bill payments after their bi-weekly pay comes in.

Suddenly, crypto becomes useful for a whole host of new payment applications.

Bacca created the worlds first Bitcoin wallet and argues that Bitcoin already lets you be your own bank. But he adds, The problem is the lack of things you can do with your money. Thats one reason hes excited about recurring payments.

Basically, saying Okay, so I am buying a subscription for a service, and then the wallet will start sending money directly matching the subscription for a given period of time, he says.

If you can script your account, there are a lot more use cases that come to mind and that are similar to what we do in Web2.

Timeline 3Timeline of Account Abstraction (Yoav Weiss)

How ERC-4337 works

Some of the functionality that smart accounts enable was already available via smart contract wallets from Gnosis and Argent; however, these solutions require centralized components called relays to pay transaction fees for the operations.

The new ERC-4337 standard on Ethereum decentralizes that part as well with new decentralized infrastructure called bundlers.

The process works like this: A smart wallet signs a user operation, which gets fired to a special mempool, which is basically just an organized queue of transactions (albeit a different queue to Ethereums normal mempool).

Bundlers are like miners or validators and take user operations from the mempool and deliver the desired result back to the wallet. The bundlers also pay for the gas (transaction fee) required and are compensated by the users contract account, or by a third party known as a paymaster. This could be a decentralized app or it could be a wallet provider.

The first production grade bundler to be deployed on mainnet is from wallet and infrastructure provider Stackup, but more will be available soon. As its decentralized and permissionless, anyone can run a bundler.

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    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 12.10.25 01:12 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 12.10.25 19:53 Tonerdomark

    A crook swiped my Dogecoin. It ruined my whole world. Then Mr. Sylvester showed up. He fixed it all. He pulled back €211,000 for me. Not one cent missing from my profits. His steady cool and sharp tech know-how won back my trust. I got my money smooth and sound. After endless worry, relief hit me hard. I trusted him completely. Lost cash to a scam? Hit him up now at { yt7cracker@gmail . com }. His aid turned my life around. WhatsApp at +1 512 577 7957.

  • 12.10.25 21:36 blessing

    Writing this review is a joy. Marie has provided excellent service ever since I started working with her in early 2018. I was worried I wouldn't be able to get my coins back after they were stolen by hackers. I had no idea where to begin, therefore it was a nightmare for me. However, things became easier for me after my friend sent me to [email protected] and +1 7127594675 on WhatsApp. I'm happy that she was able to retrieve my bitcoin so that I could resume trading.

  • 01:11 elizabethrush89

    God bless Capital Crypto Recover Services for the marvelous work you did in my life, I have learned the hard way that even the most sensible investors can fall victim to scams. When my USD was stolen, for anyone who has fallen victim to one of the bitcoin binary investment scams that are currently ongoing, I felt betrayal and upset. But then I was reading a post on site when I saw a testimony of Wendy Taylor online who recommended that Capital Crypto Recovery has helped her recover scammed funds within 24 hours. after reaching out to this cyber security firm that was able to help me recover my stolen digital assets and bitcoin. I’m genuinely blown away by their amazing service and professionalism. I never imagined I’d be able to get my money back until I complained to Capital Crypto Recovery Services about my difficulties and gave all of the necessary paperwork. I was astounded that it took them 12 hours to reclaim my stolen money back. Without a doubt, my USDT assets were successfully recovered from the scam platform, Thank you so much Sir, I strongly recommend Capital Crypto Recover for any of your bitcoin recovery, digital funds recovery, hacking, and cybersecurity concerns. You reach them Call/Text Number +1 (336)390-6684 His Email: [email protected] Contact Telegram: @Capitalcryptorecover Via Contact: [email protected] His website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 01:11 elizabethrush89

    God bless Capital Crypto Recover Services for the marvelous work you did in my life, I have learned the hard way that even the most sensible investors can fall victim to scams. When my USD was stolen, for anyone who has fallen victim to one of the bitcoin binary investment scams that are currently ongoing, I felt betrayal and upset. But then I was reading a post on site when I saw a testimony of Wendy Taylor online who recommended that Capital Crypto Recovery has helped her recover scammed funds within 24 hours. after reaching out to this cyber security firm that was able to help me recover my stolen digital assets and bitcoin. I’m genuinely blown away by their amazing service and professionalism. I never imagined I’d be able to get my money back until I complained to Capital Crypto Recovery Services about my difficulties and gave all of the necessary paperwork. I was astounded that it took them 12 hours to reclaim my stolen money back. Without a doubt, my USDT assets were successfully recovered from the scam platform, Thank you so much Sir, I strongly recommend Capital Crypto Recover for any of your bitcoin recovery, digital funds recovery, hacking, and cybersecurity concerns. You reach them Call/Text Number +1 (336)390-6684 His Email: [email protected] Contact Telegram: @Capitalcryptorecover Via Contact: [email protected] His website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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