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Account Abstraction

Account Abstraction

Account Abstraction replaces the limitations of traditional Ethereum wallets with programmable smart contract wallets that control how transactions are authorized, executed, and paid for.

In Ethereum’s default model, all actions originate from Externally Owned Accounts (EOAs). EOAs are controlled by a single private key and are limited to basic signing. They cannot batch transactions, enforce custom permissions, or abstract gas payments. For a wealth management protocol involving complex flows, delegated execution, and long-term asset security, this model is insufficient.

Account Abstraction, standardized under ERC-4337, introduces Smart Wallet Accounts (SWAs). These are smart contracts that act as wallets. Instead of relying solely on a private key, authorization logic lives inside the wallet itself. The wallet becomes programmable, recoverable, and policy-aware without modifying Ethereum’s base protocol.

How It Works​

ERC-4337 introduces a new transaction primitive called a UserOperation.

Instead of sending a standard transaction to the Ethereum mempool, users submit UserOperations to a dedicated mempool monitored by Bundlers. Bundlers aggregate and simulate these operations, then submit them on-chain through a globally shared contract called the EntryPoint.

The EntryPoint coordinates execution by:

  • Calling the user’s Smart Wallet Account to validate the operation
  • Executing the requested calls if validation passes
  • Handling gas payment logic

Gas fees can be sponsored by a Paymaster, which may cover fees entirely or accept payment in ERC-20 tokens instead of ETH.

From the outside, the wallet behaves like a normal Ethereum account. Internally, it executes custom logic defined by the wallet contract.

How BLOK Capital Uses Account Abstraction​

BLOK Capital uses Account Abstraction as the core user account layer, not as a UX add-on.

Each investor interacts with the protocol through a Smart Wallet Account, integrated via ZeroDev.

Smart Wallet as Investor Identity​

The Smart Wallet Account is the on-chain identity that:

  • Owns the investor’s Garden
  • Holds assets
  • Appears as msg.sender across all protocol interactions

The underlying EOA is only a control key. The protocol recognizes the wallet contract, not the key itself. This separation enables programmability, recovery, and policy enforcement without custody.

BLOK Capital uses MPC-based key management with Smart Wallet Accounts. This means the private key is split across multiple parties, so no single point of failure exists. The system remains fully non-custodial, and users don't need to manage a seed phrase.

Gas Abstraction​

Investors are not required to hold ETH to use the protocol.

Using ERC-4337 Paymasters:

  • BLOK Capital can sponsor gas for onboarding actions
  • Ongoing transactions can be paid in BLOKC tokens
  • Network-specific gas complexity is hidden from the user

This removes a major friction point for non-crypto-native investors.

Batched Execution​

Many protocol actions require multiple contract calls.

For example, Garden creation involves:

  • Deterministic Diamond deployment
  • Registry registration
  • Ownership setup
  • Facet upgrades and initialization

With Account Abstraction, all of this is bundled into a single UserOperation. The investor signs once. Execution is atomic. Complexity stays at the protocol layer, not the user layer.

Session Keys for Wealth Managers​

Account Abstraction enables BLOK Capital’s non-custodial delegation model.

Smart Wallet Accounts support session keys scoped, time-bound keys that can execute specific functions under strict constraints.

Wealth Managers can be authorized to:

  • Execute strategy logic
  • Trigger rebalances
  • Interact only with approved facets

They cannot withdraw funds, escalate permissions, or exceed predefined limits. These rules are enforced directly by the wallet contract, not by off-chain policy or intermediaries.

Control remains with the investor at all times.

Upgrade Authorization​

After deployment, the investor’s Smart Wallet authorizes upgrades to their Garden by calling the upgrade function directly.

Because the wallet can batch deployment, upgrades, and initialization, the entire setup flow is seamless and requires no additional manual steps.

No party including BLOK Capital can modify an investor’s Garden without authorization from the wallet that owns it.