Account Abstraction Security Considerations, Risk Mitigation & Best Practices.

Mayowa Olatunji (@web3MIO)
5 min readJul 9, 2023

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Account abstraction is an innovative technology introduced in Ethereum to enhance user experiences and address limitations in traditional externally owned accounts (EOAs) and smart contracts.

With account abstraction, a single contract account can perform transactions with tokens and create new contracts. Previously, these functionalities were limited to separate types of accounts.

AA implementation: HashEx

One way to understand the concept of account abstraction, specifically in the context of ERC-4337, is that it brings the power of smart contract functionality to wallets within a single account. This means that wallets can incorporate features such as social recovery, customization options, and upgradeability, which were traditionally associated with smart contracts.

By allowing smart contracts to initialize transactions, AA enables various features such as paying gas fees with tokens, sponsorships for transactions, flexible security mechanisms, and cross-chain compatibility without the need for native currency. While account abstraction offers significant benefits, it also introduces certain risks.

By allowing smart contracts to initiate transactions, account abstraction introduces new security considerations and associated risks.

Here are some of the risk considerations:

  1. Smart Contract Vulnerabilities: Account abstraction expands the attack surface by introducing smart contracts as user accounts. The complexity of smart contracts increases the likelihood of vulnerabilities such as reentrancy attacks, logic flaws, and access control issues. Special care must be taken during smart contract development and auditing to ensure the absence of vulnerabilities.
  2. Bugs in Implementation: Like any technology, the implementation of account abstraction may contain bugs or vulnerabilities that could be exploited by attackers. Comprehensive testing, code reviews, and security audits are crucial to identify and mitigate potential vulnerabilities.
  3. Incompatibility with Existing Smart Contracts: Account abstraction may not be compatible with all existing smart contracts. Contracts relying on specific features like tx.origin or EOA signatures may behave unexpectedly when interacting with account abstraction wallets. This incompatibility could lead to the loss of funds or unexpected behavior, making it essential to thoroughly assess the compatibility of smart contracts before integrating them with account abstraction.
  4. Third-Party Services and Code: Utilizing third-party code, such as wallet factories or paymasters, introduces additional security risks. These services may contain vulnerabilities or be compromised by malicious actors, potentially leading to the loss of funds or unauthorized access. It is crucial to assess the security practices and reputation of third-party providers and conduct thorough code reviews before integrating their services.

The entry point contract loops

The architecture of account abstraction, specifically the use of an entry point contract, introduces additional security considerations that need to be thoroughly addressed during auditing and formal verification processes. These considerations primarily focus on ensuring the robustness and security of the entry point contract, as it serves as a central trust point for all ERC-4337 interactions.

Ethereum Improvement Proposals
  1. Auditing and Formal Verification: Given the critical role of the entry point contract, it must undergo extensive auditing and formal verification processes. These processes are essential to identify and eliminate any vulnerabilities or potential attack vectors that could compromise the security of the entire account abstraction ecosystem. Rigorous testing, code reviews, and mathematical proofs should be employed to ensure the contract’s safety.
  2. Protection against Arbitrary Hijacking: The entry point contract must be designed to prevent arbitrary hijacking of user operations. It should only invoke generic calls to specific accounts if the corresponding validateUserOp function has passed and the op.calldata matches the calldata of the generic call.
    This ensures that only validated and authorized operations are executed, mitigating the risk of unauthorized access or manipulation of user accounts.
  3. Protection against Fee Draining: The entry point contract should incorporate measures to protect against fee-draining attacks. If the validateUserOp function is called and passes, the contract should ensure that the subsequent generic call is made with calldata identical to the op.calldata. This ensures that the fees associated with the operation are correctly accounted for and prevents unauthorized fee draining.

It is important to note that in addition to securing the entry point contract, further security measures and verification are required to protect paymasters and establish peer-to-peer level denial-of-service (DoS) resistance.

Risk Mitigation Strategies

Comprehensive Auditing

Smart contracts involved in account abstraction should undergo rigorous security audits by reputable blockchain security companies. Audits help identify vulnerabilities, logic flaws, and potential attack vectors, allowing developers to address them before deploying the contracts.

Formal Verification

Employ formal verification techniques to mathematically prove the correctness of smart contracts. Formal verification can help identify and eliminate potential bugs and vulnerabilities, providing an additional layer of assurance for the security of account abstraction implementations.

Compatibility Testing

Prior to integrating existing smart contracts with account abstraction, conduct compatibility testing to ensure the smooth functioning of contracts. Identify any potential issues or unexpected behavior that may arise from the interaction between account abstraction wallets and existing contracts.

Employ only Trustworthy Third-Party Providers

When utilizing wallet factories or paymasters, choose services provided by trusted and reputable entities. Thoroughly evaluate their security practices, perform due diligence, and consider conducting independent code audits. Regularly monitor the reputation and security of third-party providers to stay informed about any potential vulnerabilities or issues.

You can also monitor contract interactions, transaction patterns, and account activities to identify potential security breaches or suspicious behavior. Having an incident response plan in place will help mitigate the impact of any security incidents.

Best Practices

To ensure the security of account abstraction implementations, several best practices should be followed. First, regular code reviews and testing should be conducted to identify and address vulnerabilities or issues. This should include comprehensive unit testing, integration testing, and security-focused testing methodologies to ensure the reliability and security of the implementation.

Second, security awareness training should be provided to developers and stakeholders to educate them about the specific security considerations associated with account abstraction. This training should foster a security-conscious mindset and promote best practices in coding, contract design, and secure development methodologies.

Lastly, maintaining up-to-date documentation on security considerations, best practices, and lessons learned is crucial. This documentation should be shared within the development community to facilitate the adoption of secure practices and encourage collaboration in addressing security challenges.

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