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 with private keys, while Contract Accounts are controlled by code and transactions are processed through 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 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 promote 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 achieved 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, providing 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 the key to Ethereum's expansion to a scale of 1 billion users.
In 2024, with the approval and listing of BTC spot ETF by the SEC, the cryptocurrency market once again enters a bull market. Account abstraction and the ease of use of smart wallets can minimize user barriers 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 entered people's field of vision.
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 more than 70 DApps and blockchain applications every day, making it an indispensable presence.
As the infrastructure for AA wallets, Biconomy provides full-stack account abstraction tools, including ERC4337-compliant modular smart accounts, Paymasters (simplified transactions, receiving other tokens as gas), plug-and-play 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 collaborating 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 to on-chain operations for new users. 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 and utilizing Paymasters, 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 use social logins, hardware wallets, biometric identification, and other methods for identity verification and transaction signing. This simplifies user wallet management, increases security, and makes it more convenient for Web2 users to log in and use Web3 DApps through social accounts, email, biometrics, etc., without worrying about private key leakage, thereby reducing the threshold for novice users to use DApps.
Smart Contract Wallet
Biconomy has launched a smart contract wallet that supports user-defined transaction logic and security rules. Users can set specific transaction limits, time locks, and other functions to further enhance the security and flexibility of accounts. It supports all EVM chains and simplifies the user experience of DApps, reducing the frequency of multiple approvals and 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. At the same time, these integrations 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.
Application of Biconomy in Traditional Fields
Biconomy collaborates with traditional institutions to simplify on-chain payment processes. For example, in November 2023, in collaboration with financial giant JPMorgan Chase, Biconomy used Paymasters to build a gas payment solution, enabling convenient payment of any ERC20 tokens.
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 without the need to purchase gas tokens for each chain, simplifying the user operation process. In addition, in March of this year, Biconomy collaborated with Mercedes-Benz 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, without wallet pop-ups or 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 would pop up for each session requiring 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 is a cryptocurrency wallet invested by Binance. In addition to supporting common EOA wallets, it has launched the SWIFT feature in cooperation with Biconomy, using Biconomy Paymaster to allow 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 of derivative AA accounts), FanTV, Dexodus, DYDX, Cypherock, AlfaFrens (integration of functions to achieve wallet-free pop-up signature), etc., promoting the further application of smart accounts.
Project Financing and Tokens
Biconomy raised $1.5 million in early 2021, followed by a $9 million financing 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 financing, with a total financing 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 selling pressure. It has been listed on well-known exchanges such as Binance, Coinbase, Bitget, OKX, THX.
Biconomy's partners include not only the Web3 industry but also the Web2 and traditional industries. In addition to JPMorgan Chase, it also includes traditional giants such as Mercedes-Benz, 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 a BICO token airdrop for 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 it 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. Its main feature is to achieve minimal interoperability for modular developers and applications, helping developers customize functionality and improve user experience more conveniently. 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 achieves temporary delegation of smart contract functionality to EOA accounts by proposing a new transaction type that can accept both Contract_code and signature fields. This means that EOAs can also act as smart contract wallets, ensuring long-term effectiveness and practicality through this compatibility design.
- Exploration of AI Proxy Application Permission Management by Smart Wallets
The arrival 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 will also reduce security. Biconomy is exploring setting boundaries for AI by allowing users to define smart account permissions, ensuring that AI can operate within the permission 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 user numbers in this bull market cycle. The user experience of wallets and DApps, as the infrastructure, will directly affect users' perception and understanding of blockchain technology. The user experience of basic wallet accounts and DApps is crucial.
Smart wallets and account abstraction are the inevitable paths for Ethereum's growth, and Biconomy, with its powerful infrastructure toolkit SDK and modular design, facilitates integration into decentralized applications such as DEX, GameFi, DePIN, NFT, Restaking, etc., 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 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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