Vitalik points out problems with popularization of cryptocurrencies = EthCC

Presented at EthCC

Vitalik Buterin, co-founder of cryptocurrency Ethereum (ETH), took the stage at the Ethereum Community Conference (EthCC) on the 18th and talked about the history of Account Abstraction (AA).

AA is a technology that Mr. Buterin has long expected to be “a long-standing dream of the Ethereum developer community.” While he praises the technology this time around, he also talks about the challenges.

There are two types of accounts on the Ethereum network: “contract accounts” and “externally-owned accounts (EOA)” such as Metamask. AA is to expand the functions of the contract account and unify these two accounts into a contract account.

In March of this year, the AA function was implemented on the mainnet. Since then, developers have been able to develop applications using AA’s capabilities. With AA, it will be possible to pay gas bills with ERC-20 tokens other than Ethereum, socially recover lost wallets, and have gas bills shouldered.

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Regarding the merits of AA, Mr. Buterin mentioned that it became possible to aggregate signatures this time. He said this would allow data to be compressed, leading to lower processing costs. He notes that it’s especially useful for Layer 2 rollups, where the volume of signatures is large.

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Buterin has explained this benefit before. In August of last year, he posted on Twitter how much information can be compressed with AA (ERC-4337) with the following tweet. This presentation also uses the following images.

Some quick theorycrafting of how much data space we can save by improving compression (especially in rollups).

ERC4337 signature aggregation (https://t.co/wFJI3BEq6g) is essential to this. pic.twitter.com/nrlcOpVJKb

— vitalik.eth (@Vitalik Buterin) August 4, 2022

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About assignments

While saying that AA has great merits, he pointed out the current challenges at the end of his presentation. For example, it states that an Ethereum Improvement Proposal (EIP) will be required to upgrade the EOA.

In addition, he pointed out that dealing with existing technologies such as biometric signatures and current wallets is also an issue. Despite this, AA has made great progress, and he concluded his presentation by expressing his expectations that the future of the technology is something to look forward to.

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