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ERC 4337 : Account Abstraction

Account Abstraction (ERC-4337) is a framework that allows smart contract wallets to act like regular user accounts (EOAs) by removing the need for private keys and enabling powerful programmable features.

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Transaction Flow in ERC-4337​

  1. Initiation: A user creates a UserOperation, specifying their transaction intent (e.g., transferring tokens).
  2. Bundling: A Bundler collects this UserOperation, along with others, and batches them into a single transaction.
  3. Submission: The Bundler submits the batched transaction to the EntryPoint smart contract on the blockchain.
  4. Verification: The EntryPoint verifies the UserOperations, using an Aggregator (if applicable) to validate signatures efficiently.
  5. Execution: The EntryPoint forwards each valid UserOperation to the corresponding Smart Contract Account.
  6. Gas Handling: If a Paymaster is involved, it handles gas payment (e.g., sponsoring fees or accepting alternative tokens).
  7. Completion: The Smart Contract Account executes the UserOperation, completing the user’s intended action.

Advantages of ERC-4337 Account Abstraction​

  • Gasless Transactions: Paymasters allow users to interact without holding crypto assets for gas, as fees can be sponsored or paid in other tokens, enhancing accessibility.

  • Improved User Experience: Users can use smart contract wallets with custom logic (e.g., social recovery, spending limits), eliminating the need for EOAs and seed phrases.

  • Transaction Efficiency: Bundlers batch multiple UserOperations, reducing gas costs and network congestion, while Aggregators streamline signature validation.