• Home
  • Cryptocurrency
  • Blockchain
  • Analysis
  • News
    • Regulations Security
    • Getting Started
  • Insights
    • Opinion
    • Expert Interview
  • All Posts
Facebook X (Twitter) Instagram
Trending
  • KiloEx Exchange Exploiter Restores All Stolen Funds Following $7.5 Million Hack
  • Hashkey Targets XRP ETF in Asia with New Fund Supported by Ripple
  • Sygnum Predicts Potential Altcoin Rally in Q2 2025 Due to Enhanced Regulations
  • Media Tycoon Files Counterclaim Against Justin Sun in $78 Million Sculpture Dispute
  • Yemenis are embracing DeFi in response to US sanctions on the Houthi group
  • Saylor and ETF Investors’ ‘Stronger Hands’ Contribute to Bitcoin Stabilization — Analyst
  • Bitcoin Dip Buyers Show Interest at BTC Range Lows, Yet Remain Risk-Averse Until $90K Establishes Support
  • Kyrgyzstan’s President Enacts CBDC Legislation Granting Legal Status to ‘Digital Som’
Facebook X (Twitter) Instagram
CoinovelCoinovel
  • Home
  • Cryptocurrency
  • Blockchain
  • Analysis
  • News
    • Regulations Security
    • Getting Started
  • Insights
    • Opinion
    • Expert Interview
  • All Posts
CoinovelCoinovel
Home » Unleashing Ethereum’s Full Potential: The Power of Smart Accounts and Account Abstraction
Unleashing Ethereum's Full Potential: The Power of Smart Accounts and Account Abstraction
Unleashing Ethereum's Full Potential: The Power of Smart Accounts and Account Abstraction

Unleashing Ethereum’s Full Potential: The Power of Smart Accounts and Account Abstraction

0
By admin on 2024-03-21 Blockchain

The Ethereum ecosystem is on the verge of experiencing advanced security features and transaction functionality through the emergence of smart contract wallets and account abstraction. However, the adoption of this technology is still progressing slowly. During ETHGlobal in London, Cointelegraph interviewed Lukas Schor, co-founder of Safe, to explore the potential of smart contract accounts and account abstraction in unlocking Ethereum’s full potential.

Schor referred to a recent blog post by Vitalik Buterin, which outlined three transitions that need to occur in Ethereum, one of them being the shift to smart accounts. Safe, originally developed as an in-house multisignature wallet by Gnosis, was created to manage a substantial amount of Ether raised during its initial coin offering. As there were no battle-tested multisignature wallets available at the time, Gnosis founder Stefan George decided to build his own and open-sourced it. This wallet soon became the standard for multisignature wallets in the Ethereum community.

Thus, Gnosis Safe was born and eventually became a standalone offering known as Safe. It now serves as the smart account infrastructure for Ethereum users, layer-2 solutions like Optimism and Polygon, and exchanges like Bitfinex. Safe currently secures over $100 billion in value across more than 7.5 million smart account addresses.

Smart accounts address security and user experience challenges within the Ethereum ecosystem. They offer new design spaces to solve long-standing UX and security issues, such as cross-chain interoperability and key management. Smart accounts allow for batch transactions, making DApp interactions more seamless by bundling multiple on-chain actions into a single transaction. They also provide security guarantees through multisig functionality and key rotation, allowing users to change signing keys without migrating assets to a new account.

Furthermore, smart accounts enable the automation of traditional finance concepts like subscriptions and offer on-chain security features such as allow and deny lists to block interactions with malicious contracts. They can also reduce friction for non-Web3 users by allowing them to onboard using Web2 social accounts or email addresses, with the option to transition to a more trustless setup later.

Schor believes that the adoption of smart accounts will follow a “first slowly, then all at once” trajectory. He acknowledges that most users still utilize externally owned accounts (EOA) through wallets like MetaMask, which is why many applications and wallets cater to this user base. However, layer-2 protocols have the opportunity to start fresh, and the proposed migration EIP-7377 could expedite adoption by eliminating the need to optimize for legacy users.

Safe has focused on specific user groups that would benefit the most from the additional security and flexibility of smart accounts, including Ethereum ecosystem teams and DAOs. Over time, adoption has gradually expanded to less technical and lower-value use cases, as evidenced by Worldcoin’s deployment of six million smart accounts. Schor believes that 2024 could be a breakout year for smart accounts, with catalysts such as Coinbase leveraging them, the development of cross-chain smart accounts, and the implementation of EIP-7377 driving migration.

In conclusion, the emergence of smart contract wallets and account abstraction brings advanced security features and transaction functionality to the Ethereum ecosystem. While adoption is currently progressing slowly, the potential of smart accounts to enhance security and user experience is significant. With the right catalysts and the support of layer-2 protocols, the adoption of smart accounts could accelerate, leading to widespread implementation in the future.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Yemenis are embracing DeFi in response to US sanctions on the Houthi group

Polygon’s Nailwal: The Jio Partnership Will Propel Real-World Web3 Adoption for 450 Million Users

Babylon’s Total Value Locked Decreases by 32% as Wallets Unstake $1.2B in Bitcoin

  • Popular
  • Latest
  • Hot comments
2022-02-23 Getting Started

Cryptopedia: Unveiling the Metaverse’s Potential to Revolutionize the Internet

2022-03-07 Getting Started

Unveiling Cryptopedia: Grasp the fundamentals of DAOs and their operational mechanisms

2022-03-25 Getting Started

Cryptopedia: Explore Web3 and its goal to revolutionize internet services

2025-04-18 Regulations Security

KiloEx Exchange Exploiter Restores All Stolen Funds Following $7.5 Million Hack

2025-04-18 Cryptocurrency

Hashkey Targets XRP ETF in Asia with New Fund Supported by Ripple

2025-04-18 Cryptocurrency

Sygnum Predicts Potential Altcoin Rally in Q2 2025 Due to Enhanced Regulations

Latest Gallery

Latest Recommendations
2025-04-18 Regulations Security

KiloEx Exchange Exploiter Restores All Stolen Funds Following $7.5 Million Hack

2025-04-18 Cryptocurrency

Hashkey Targets XRP ETF in Asia with New Fund Supported by Ripple

2025-04-18 Cryptocurrency

Sygnum Predicts Potential Altcoin Rally in Q2 2025 Due to Enhanced Regulations

2025-04-18 Regulations Security

Media Tycoon Files Counterclaim Against Justin Sun in $78 Million Sculpture Dispute

2025-04-18 Blockchain

Yemenis are embracing DeFi in response to US sanctions on the Houthi group

2025-04-18 Regulations Security

Saylor and ETF Investors’ ‘Stronger Hands’ Contribute to Bitcoin Stabilization — Analyst

2025-04-18 Cryptocurrency

Bitcoin Dip Buyers Show Interest at BTC Range Lows, Yet Remain Risk-Averse Until $90K Establishes Support

2025-04-18 News

Kyrgyzstan’s President Enacts CBDC Legislation Granting Legal Status to ‘Digital Som’

2025-04-17 Blockchain

Polygon’s Nailwal: The Jio Partnership Will Propel Real-World Web3 Adoption for 450 Million Users

2025-04-17 Blockchain

Babylon’s Total Value Locked Decreases by 32% as Wallets Unstake $1.2B in Bitcoin

2025-04-17 Regulations Security

OpenAI pursued a deal with Anysphere prior to shifting its focus to WindSurf

2025-04-17 Analysis

Bitcoin Gold’s Imitation Strategy Could Surpass $150K as BTC Remains ‘Remarkable’

2025-04-17 Cryptocurrency

AI Tokens and Memecoins Dominate Cryptocurrency Narratives in Q1 2025: CoinGecko

2025-04-17 Cryptocurrency

Four Reasons Why the Price of Bitcoin Could Surge to $90,000 in April

2025-04-17 News

Trump Criticizes Powell for Delaying Interest Rate Cuts, Calling It ‘Too Late’

2025-04-17 News

Wyoming Commission Considers Whether Stablecoin Falls Under SEC Regulations

About
About

Coinovel is an enthralling novel of cryptocurrencies. Engage with narratives, delve into stories, and journey through the captivating world of digital currencies.

X (Twitter) Telegram
Popular posts
2022-02-23 Getting Started

Cryptopedia: Unveiling the Metaverse’s Potential to Revolutionize the Internet

2022-03-07 Getting Started

Unveiling Cryptopedia: Grasp the fundamentals of DAOs and their operational mechanisms

2022-03-25 Getting Started

Cryptopedia: Explore Web3 and its goal to revolutionize internet services

Copyright © 2025 coinovel. All rights reserved.
  • Home
  • Cryptocurrency
  • Blockchain
  • Regulations Security
  • Analysis
  • Insights
  • News
  • Getting Started

Type above and press Enter to search. Press Esc to cancel.