Pioneering Account Abstraction on Ethereum: Loopring’s new AA Wallet
Account Abstraction wallets have been acclaimed as the groundbreaking new wallet innovation that will help usher in the next billion users to the Web3 era with the seamless simplicity of a Web2 user experience. Our Loopring Account Abstraction wallet is now here and going live across Ethereum soon.
Let’s dig into what sets this new wallet apart ↓
First, let’s lay out the basics for anyone that is not familiar with the concept.
What is an Account Abstraction wallet?
Account Abstraction (ERC-4337) is an Ethereum Improvement Proposal (EIP) that introduces account abstraction to the Ethereum ecosystem.
Account Abstraction wallets aim to replace old EOA (Externally Owned Account) wallets (MetaMask is a very popular EOA wallet) with new Smart Accounts using programmable logic.
More simply — Account Abstraction is a new paradigm that aims to revolutionize the user experience and enhance the functionality of crypto wallets.
It’s a new concept that has gained a lot of attention in the Ethereum community over the past months. The promise is to improve the user experience by introducing this new smart logic and abstracting away complexity for the end user.
This should improve the user experience to a point that we can compete with traditional, centralized applications (Web-2) that are seamless and extremely convenient for the end user — bringing users into the new Web-3 era on decentralized crypto rails with a familiar, simple experience.
Loopring is now helping lead the way with this new effort with the hope to onboard the next generations of users to the space.
What features set the Loopring Account Abstraction Wallet apart?
Loopring’s Account Abstraction Paymaster Service is the key behind this fresh, new user experience. This new Loopring Paymaster brings the user:
➔ A gas-free user experience with sponsored transactions
➔ Support for users to pay fees with multiple pay tokens
➔ Lower user fees by using a new pre-paid Gas Tank feature
Decentralization for the end user
This Paymaster Service is also interoperable with other Account Abstraction wallets — helping to decentralize the end user experience.
The Loopring Paymaster will be a Paymaster-as-a-service for other wallets to use and the Loopring Smart Wallet will also enable other paymasters to join our experience. If others enable this as well, this creates a decentralized user experience — users will have the ability to toggle between Paymasters to ensure uptime, optionality and a variety of services.
Now, onto the features that the Loopring Paymaster will offer users ↓
Sponsored Transactions: a gas-free user experience
This feature enables third parties to sponsor transactions and cover gas fees on behalf of users. This could include the application providers themselves (like Loopring Smart Wallet).
This creates a gas-free experience for the end user making transactions seamless and more similar to a Web2-like experience.
Hayden, the founder of Uniswap, tweeted some insight into what this future may look like. I tend to agree with this vision of the future.
Once we can bring network costs down to pennies or less with innovations like the upcoming EIP 4884 upgrade on Ethereum and Layer 3 scaling technology — these costs can eventually be abstracted away from the end user and be treated as an application cost, similar to server costs, that never needs to touch the end user.
This will create a seamless and Web2-like experience, removing a ton of friction that is currently keeping many users away from onboarding to this new crypto paradigm.
Support for Multiple Fee Pay Tokens
Although network fees may be abstracted away in the future, we are not yet there today. There will also always be other fees (trading fees, etc.) that users will have to pay. This experience will also need to be as seamless as possible for the end user.
The future of crypto will include many tokens throughout many ecosystems — not everyone will want to store ETH for every transaction. Loopring’s Paymaster enables this seamless future where any user can pay fees with whatever supported token they choose from their wallet.
This is done by the Paymaster receiving the token of choice from the user, and then using oracle pricing to swap it into the network fee token and paying the fee on behalf of the user.
Users can save further on fees by using a new pre-paid Gas Tank feature, allowing them to avoid this extra transfer (to the Paymaster) cost ↓
Lower user fees with the new Gas Tank
Pre-funding a new gas tank in your wallet can save users around 30,000 gas per transaction.
This new feature eliminates the need for an additional token transfer to the Paymaster on each transaction. Users will also be able to transact worry-free without having to think about exceeding balances with transaction fees.
How it works is you pre-fill your Gas Tank in your wallet with whatever supported pay tokens you want to use. It then frees up your main wallet to use only for transacting — not having to think about fees. The fees will be automatically taken from this Gas Tank whenever you transact with the preference of tokens you choose ahead of time.
Try out Account Abstraction today
The Loopring Smart Wallet with Account Abstraction is now LIVE on the Taiko A6 testnet — you can try it out in the Loopring Smart Wallet today!
In the coming months, we will deploy this wallet across Ethereum mainnet networks, including (but not limited to) Taiko, Base, Arbitrum, Optimism, Scroll, zkSync + many more.
The new Multi-Network Loopring
With our new Multi-Network strategy, we will also be integrating all of the top DApps from each network natively into the Loopring Smart Wallet experience.
Look out for this improved user experience along with some other new innovative smart features in the wallet. We will also be deploying a new DApp of our own (Loopring Earn) baked into the wallet experience, which will also be available on the web.
The aim for the Loopring Smart Wallet is to be the #1 wallet and a one-stop-shop for every crypto user — no matter what network they want to use.
➔ a fresh, new Account Abstraction user experience
➔ bulletproof asset security
➔ innovative Smart features + DApps
➔ native DApp usage on each network
➔ smart trading capabilities
Come try it today and stay tuned for many more announcements about network deployments throughout the year!
About Loopring
Loopring is an Ethereum Layer 2 zkRollup protocol for scalable, secure DeFi and NFT applications. Loopring builds non-custodial, high-performance products atop our L2, including the Loopring Wallet — a mobile Ethereum smart wallet, and the Loopring L2 web app — an L2 orderbook and AMM DEX. To learn more, follow us on Medium or see Loopring.org.
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