ERC-4337 and Account Abstraction: tokens to keep on your radar
The world of digital assets is filled with narratives, especially in the Ethereum universe. Recently, the concept of Account Abstraction gained momentum with the introduction of EIP-4337, which enables account abstraction without a layer 1 change in Ethereum. Explore more about these tokens worth keeping an eye on.
The world of digital assets are filled with narratives, especially in the Ethereum universe. With the introduction of ERC-4337, which enables account abstraction without a layer 1 change in Ethereum, the concept of Account Abstraction has recently gained traction. This update was deployed in March 2023 and could facilitate the adoption of cryptocurrencies in simpler and more feature-rich wallets.
Currently, there are two types of accounts used in the Ethereum network: Externally Owned Accounts (EOA) and Contract Accounts (CAs). When an investor creates their wallet, such as in MetaMask, for example, they receive an EOA, which is a more limited type of account that relies on private keys for account access and requires a signature for each transaction. With account abstraction, it will be possible to bring the same functionalities of CAs to EOAs.
One of the limitations that often concerns users when managing their own crypto wallet is the risk of losing their private keys (seed phrases) and potentially all their assets. With account abstraction, account recovery would be facilitated with multi-factor authentication and account recovery features.
Another advantage of this update is the expanded wallet functions and the flexibility in gas fees. The former means a wider range of functions, such as automatic payments, transaction pre-approval, and batched transactions. The latter means that wallets using the ERC-4337 standard will be able to pay gas fees with any ERC-20 token, not just ETH.
Given that this concept has the potential to add value to the crypto universe, the digitra.com trading desk has identified 5 projects and tokens related to Account Abstraction that are worth monitoring. This is just a selection of projects, not an investment recommendation. Check them out:
1 - Biconomy (BICO)
Biconomy is a layer 2 infrastructure aiming to simplify the user experience for DApps. The platform offers features like instant payments, reduced costs, and an enhanced user experience. Biconomy is working on implementing the ERC-4337 improvement proposal, simplifying the user experience for wallets and decentralized applications. The $BICO token incentivizes network participants to provide services and is currently trading at $0.21 at the time of writing, according to Coingecko.
2 - Eden Network (EDEN)
Eden Network is a distributed computer network proposing to provide storage, computation, and networking services in a decentralized manner. The network uses the $EDEN token to incentivize participants to provide services and is working to implement the ERC-4337 improvement proposal to simplify the user experience for wallets and decentralized applications. According to Coingecko, $EDEN is trading at $0.013. Currently, the network is running on a testnet but is scheduled to launch on the mainnet by the end of 2023.
3 - Instadapp (INST)
Instadapp is a platform that utilizes account abstraction solutions to allow users to interact with multiple DeFi protocols at once. The platform has a simple and user-friendly interface that makes it easier for users to participate in complex DeFi strategies, such as yield farming and lending. Holders of their native token, $INST, have governance power. It is trading at $1.1, according to Coingecko.
4 - Kromatika Finance (KROM)
Kromatika Finance is a decentralized trading platform (DEX) offering a variety of features, including limit orders, swaps, perpetual trading, and liquidity fees for executed limit orders (FELO). Kromatika is built on the Uniswap V3 platform and uses Biconomy's layer 2 infrastructure to reduce gas fees. The native token of Kromatika, $KROM, is used to incentivize network participants to provide liquidity and perform tasks. According to Coingecko, $KROM is trading at $0.023.
5 - Ambire Wallet (WALLET)
Ambire Wallet is a secure and non-custodial Web3 wallet that offers a user-friendly interface and a range of advanced features. It is designed to be accessible to users of all experience levels. Through Ambire, users can enjoy a smart contract wallet, with advantages such as the elimination of seed phrases. The $WALLET token also offers governance to holders and is trading at $0.0035, according to Coingecko.
Remember that this selection is not an investment recommendation. digitra.com does not guarantee against losses. Research and understand the technologies behind digital assets before diving into a diversified investment wallet.
Keep reading DGFresh if you want to learn more about cryptocurrency trading and investing!