Account Abstraction (AA) is an important concept in blockchain technology, aimed at enhancing the flexibility and functionality of smart contract accounts. Traditionally, accounts in blockchain networks are divided into Externally Owned Accounts (EOA) and Contract Accounts. EOAs are controlled directly by users and transactions are signed using private keys, while Contract Accounts are controlled by code and transactions are processed using smart contract logic. The goal of account abstraction is to blur the boundaries between these two types of accounts, giving contract accounts more functionality while also allowing EOAs to have the flexibility of smart contracts.
By enhancing the flexibility and functionality of accounts, account abstraction greatly enhances the user experience, security, and innovation capabilities of Web3. With the continuous development of account abstraction technology, the Web3 ecosystem will become more diverse, attracting more users and developers to participate and promoting the popularization and application of blockchain technology.
In 2016, Vitalik Buterin first proposed the concept of account abstraction in a blog post for the Ethereum Foundation, suggesting enhancing the functionality and flexibility of accounts through smart contracts. In 2022, EIP-4337 proposed a Layer 2-based account abstraction standard, which implemented account abstraction functionality without changing the protocol of Ethereum Layer 1. In 2023, EIP-4337 was successfully deployed and implemented on the Ethereum mainnet, marking a new stage in account abstraction. With the implementation of this proposal, more and more DApps are adopting account abstraction technology to provide a more flexible and secure user experience.
Account abstraction technology is expected to be adopted by more blockchain platforms and applications in the future. New proposals and improvements will continue to emerge, further enhancing the functionality and scope of account abstraction. Vitalik Buterin has also publicly stated that account abstraction is a key factor in Ethereum's goal of expanding its user base to 1 billion.
In 2024, with the approval and listing of BTC spot ETF by the SEC, the cryptocurrency market enters a bull market again. Account abstraction and the simplicity and convenience of smart wallets can greatly reduce the user threshold and promote the widespread adoption of Web3. The account abstraction infrastructure has attracted the attention of developers and investment institutions, and Biconomy has once again come into view.
Biconomy Account Abstraction Infrastructure
Biconomy is a development platform that provides a specialized toolkit SDK and on-chain extension solutions for ERC-4337 abstract accounts. It provides modular AA smart account functionality for DApps, promoting the popularization and large-scale application of Web3 by simplifying the user experience of wallets and decentralized applications. In simple terms, it provides a complete solution for Web3 application developers with abstract account requirements. Currently, Biconomy has created over 1.25 million wallets on all chains and processes around 50,000 transactions for over 70 DApps and blockchain applications every day, making it an indispensable presence.
As the infrastructure for AA wallets, Biconomy provides a full-stack account abstraction tool, including ERC4337-compliant modular smart accounts, Paymasters (simplified transactions, receiving other tokens as gas), pluggable API services, and binding programs as services. In addition to supporting the Ethereum mainnet, Biconomy also supports multiple chains such as Arbitrum, Polygon, Base, Optimism, BNB Chain, Blast, and TON, and recently added support for Scroll, covering most mainstream EVM chains on the market.
Biconomy has recently made frequent moves, attracting a lot of attention at the Token 2049 event in Dubai and partnering with Chappyz, BetSwirl, and others. The official will also release Biconomy SDK v4.2 and implement more updates to provide additional functionality and tools.
Specific Implementation and Contributions of Biconomy in Account Abstraction
Gasless Transactions
Gas is the first barrier for new users to perform on-chain operations. Biconomy enables gasless transactions through the Relay Protocol. Users can use DApps without the need to hold ETH to pay for gas fees. By introducing relayers, Biconomy enables gasless transactions where the transaction fees can be paid by DApp developers or third parties, greatly improving the user experience.
Multi-Signature and Multiple Authentication Methods
Biconomy supports multi-signature and multiple authentication methods, allowing users to authenticate and sign transactions using social logins, hardware wallets, biometrics, and other methods. This simplifies user wallet management, increases security, and makes it more convenient for Web2 users to log in and use Web3 DApps using social accounts, email, biometrics, etc., without worrying about private key leaks, thereby reducing the threshold for novice users to use DApps.
Smart Contract Wallets
Biconomy has launched smart contract wallets that support user-defined transaction logic and security rules. Users can set specific transaction limits, time locks, and other features to further enhance the security and flexibility of their accounts. The smart contract wallets also support all EVM chains, simplifying the user experience of DApps and reducing the frequency of multiple approvals, enabling simple interactions.
Integration with Layer 2 Solutions
Biconomy integrates with multiple Layer 2 solutions such as Polygon and Optimism to improve transaction speed and reduce transaction costs. These integrations also promote the application of account abstraction on different blockchain platforms.
Developer-Friendly SDK
Biconomy provides a developer-friendly software development kit (SDK) that simplifies the integration process of account abstraction functionality, allowing developers to extend their DApp applications and deploy AA accounts in a short period of time. This not only shortens development time but also reduces the complexity of user interactions and gas fees while improving security.
Applications of Biconomy in Traditional Fields
Biconomy collaborates with traditional institutions to simplify on-chain payment processes. For example, in November 2023, Biconomy collaborated with financial giant JPMorgan Chase to build a gas payment solution using Paymasters, enabling convenient payment of any ERC20 token.
Paymaster is an on-chain contract launched by Biconomy, which allows users to customize payment with other tokens and use smart contracts instead of paying on-chain gas fees. This reduces the cost for users and simplifies the user operation process. In addition, Biconomy collaborated with Mercedes-Benz in March of this year to establish a secure and low-cost data marketplace solution.
Applications Built Using Biconomy
Web3 Game Anichess
Anichess is an international chess strategy game that has raised $1.8 million. By using Biconomy, Web2 users can register and create smart accounts using their email addresses, and users can claim NFTs in the game without the need for gas, eliminating wallet pop-ups and the need for mnemonic seeds, making it convenient for Web2 users.
Rage Trade
Rage Trade is a perpetual contract protocol based on the Arbitrum ecosystem. In previous DEX transactions, a wallet popup was required for each session for user approval and signature. By using the session mode supported by Biconomy, users can place orders and execute trading strategies without the need for cumbersome signing steps, simplifying the convenience of placing orders and self-custody of assets compared to CEX.
Trust Wallet SWIFT
Trust Wallet, an encrypted cryptocurrency wallet invested by Binance, supports various tokens and EOA wallets. Through cooperation with Biconomy, Trust Wallet introduced the SWIFT feature, allowing users to pay gas fees with various tokens. Wallet creation does not require mnemonic phrases, only Face ID and fingerprint technologies. It also supports trading of 200 different tokens.
In addition, Biconomy has collaborated with project teams such as Sushiswap, Kwenta (one-click trading for derivative AA accounts), FanTV, Dexodus, DYDX, Cypherock, AlfaFrens (integration of functions to achieve wallet-free popup signing), etc., promoting further application of smart accounts.
Project Financing and Tokens
Biconomy raised $1.5 million in early 2021, followed by a $9 million funding round in July 2021, and a $11.5 million public fundraising on Coinlist in October 2021. In March of this year, Biconomy announced another round of undisclosed funding, with a total funding amount exceeding $22 million.
Investment institutions include Jump Capital, Consensys Ventures, Binance, Mechanism, Coinbase Ventures, Blockchain Founders Fund, Eden Blocks, etc.
$BICO is the ecosystem token of Biconomy, with a total supply of 1 billion tokens, currently circulating supply is 780 million, accounting for nearly 80%, with a relatively small market sell-off pressure. It has been listed on well-known exchanges such as Binance, Coinbase, Bitget, OKX, and THX.
Biconomy's partners not only include the Web3 industry but also extend to Web2 and traditional industries. In addition to JPMorgan Chase, it also includes Mercedes-Benz and other traditional giants, providing a more convenient experience for traditional users.
BICO Staking Airdrop
BICO staking is an important part of Biconomy's token economy activities to promote the growth of the ecosystem. Biconomy conducted an airdrop of BICO tokens to users who participated in interactions during the TGE in 2021, which was well received by the market. In addition, in April of this year, Biconomy announced rewards for users who stake BICO, allowing them to receive hundreds of ARB tokens as rewards and corresponding staking income.
Currently, staking BICO also has good returns, with a 2x yield compared to Alchemy AA.
Recent Developments and Future Plans of Biconomy
- Gas Fee Subsidies for On-Chain DApps
Biconomy recently partnered with Base Chain for the ONCHAIN SUMMER event, providing up to $30,000 in gas fee subsidies for Base ecosystem projects. Users can use DApps without gas fees under certain conditions, and this also supports Base Chain, including SocialFi.
DApp application link: https://tally.so/r/wQAgVl
- Implementation of ERC-7579
ERC-7579 is a simplified modular smart account standard launched by Biconomy in collaboration with ZeroDev, Rhinestone, OKX, etc. It achieves minimum interoperability for modular developers and applications, making it easier for developers to customize functionality and improve the user experience. This solution has also been applied in the OKX wallet.
- Application of ERC-7579
EIP-7702 can be seen as an upgraded version of EIP-4337, which introduces a new transaction type that can accept both Contract_code and signature fields, enabling EOAs to temporarily delegate to smart contracts. This compatibility design ensures long-term effectiveness and practicality.
- Permission Management Exploration for Web3 AI Proxy Applications by Smart Wallets
The advent of AI has enabled many Web3 applications to implement intelligent processing of user operations. However, currently, approvals and signatures are still required, and choosing automated processing would reduce security. Biconomy is exploring setting boundaries for AI by allowing users to define smart account permissions, ensuring that AI can operate within the authorized scope.
- Release of Paymaster Documentation
Biconomy recently released documentation and guidelines for Paymasters, including wallet deployment, whitelisted smart contracts, expenditure restrictions, and Webhooks, making it easier for developers to add them to their applications.
Conclusion
With the upcoming listing of BTC spot ETF and the proliferation of Layer 2 solutions, the Ethereum ecosystem is about to experience rapid growth in its user base, and the user experience of wallets and DApps, as infrastructure, will directly impact users' perception and understanding of blockchain technology. Smart wallets and account abstraction are the inevitable paths for Ethereum's growth, and Biconomy, with its powerful infrastructure toolkit SDK and modular design, enables developers to integrate into decentralized applications such as DEX, GameFi, DePIN, NFT, and Restaking, providing users with a more convenient and secure experience.
Biconomy's efforts not only explore the concept of account abstraction but also bring new possibilities to the entire blockchain ecosystem. By implementing features such as gasless transactions, multi-signature authentication, and smart contract wallets, Biconomy effectively enhances the user experience and security of Web3. With Biconomy's continuous promotion of account abstraction technology and its close integration with Layer 2 solutions, we can expect to see more innovative solutions emerge, opening up new paths for the further development and popularization of blockchain technology.
Biconomy's efforts not only explore the concept of account abstraction but also demonstrate confidence in the future potential of blockchain technology. It will continue to lead the blockchain industry towards a more open, flexible, and convenient direction.
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