Everything About Account Abstraction: AA grants from Ethereum, Buterin’s Privacy Pools
Tags: softwaredevelopment, showdev, ethereum, news
Published: 2023-09-13 12:15:56

We are welcoming you to our weekly digest! Here we discuss the latest trends and advancements in account abstraction, as well as bring some insights from Etherspot’s kitchen.

Please fasten your belts!

#Ethereum Foundation issues 18 grants (Etherspot among recipients)#

The Ethereum Foundation has finalized its [latest grants program](https://mirror.xyz/erc4337official.eth/hRn_41cef8oKn44ZncN9pXvY3VID6LZOtpLlktXYtmA), focusing on advancing the ERC-4337 account abstraction standard. The foundation has awarded 18 grants to a diverse range of projects. The projects range from the creation of educational resources to the development of software tailored to the needs of third-party applications.

Among the 18 selected recipients are Etherspot’s Skandha Bundler, Zerodev Kernel and UniPass, each bringing unique functionalities to the table, such as batching transactions, producing educational content, or integrating biometric authentication into existing wallets.

Here at Etherspot, we are proud to receive this grant in recognition of our efforts toward the advancement of EIP-4337 and account abstraction.


![Ethereum Foundation issues 18 grants (Etherspot among recipients)](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/mxjfoggrb77a9ovpwwb1.png)

This topic has stirred considerable interest in the Ethereum community. Historically, account abstraction proposals were intricate, requiring significant protocol modifications. However, EIP-4337 offers a novel approach, introducing a unique mempool and bundler system that doesn’t require protocol changes.

Etherspot’s contribution, the [Skandha bundler](https://etherspot.io/skandha/), is operational on multiple networks from Ethereum to Polygon (currently it supports eleven mainnets and six testnets and). The team believes diverse bundler implementations will fortify the ecosystem, enhancing its security and user experience. Also, part of the grant is the development of a P2P interface bundler service.

Highlighting the importance of this paradigm shift, Ethereum co-founder Vitalik Buterin previously emphasized its potential to simplify cryptocurrency wallet management to the ease of using an email. This enhancement could significantly lower the entry barrier for individuals unfamiliar with the technical aspects of crypto.

#Consensys launches Builder Nights Tour 2023#

Consensys has announced its [Builder Nights Tour](https://lu.ma/BuidlSingapore) for 2023, a series of events designed to foster collaboration and innovation among industry pioneers.

A focal point of these gatherings will be the concept of account abstraction and greater customization within smart contract accounts. But the Builder Nights won’t just be limited to AA. Topics will range from the future of decentralization, digital asset security, and Web3 gaming to layer 2 solutions.

The tour, steered by Mirko Garozzo and Francesco Andreoli, will span Southeast Asia, with the upcoming event in Singapore featuring Ethereum’s co-founder, Vitalik Buterin.

It’s also worth noting that Etherspot will be participating in these discussions, bringing insights and expertise to the table, especially regarding recent account abstraction developments.

![Consensys launches Builder Nights Tour 2023](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/ebzw3g1o7dh4ygizlx6y.png)

#Clave releases comprehensive guide on account abstraction#

Clave, a smart wallet platform, has recently published a [guide](https://blog.getclave.io/p/ultimate-account-abstraction-guide) about account abstraction. It delves deep into the concept of AA, shedding light on its significance within the Ethereum ecosystem.


To remind you, account abstraction, a proposed upgrade for Ethereum, primarily aims to enhance user experiences and offer greater flexibility in smart contract operations. One of its standout features is the ability for users to pay gas fees using tokens other than ETH, a move that could revolutionize transaction processes on the platform.

The guide highlights several benefits of this upgrade, including:

Flexibility empowers developers with the tools to craft more complex and adaptable smart contract logic.
Streamlining transactions by permitting gas payments in a variety of tokens.
Security is achieved by bolstering Ethereum’s security framework, i.e., minimizing dependence on externally owned accounts (EOAs).
However, Clave also points out certain challenges that come with account abstraction. These include potential security vulnerabilities, a steeper learning curve for developers, and apprehensions regarding network congestion.

#Vitalik Buterin proposes “Privacy Pools” to separate honest transactions from criminal activity#

Ethereum co-founder Vitalik Buterin, in collaboration with four other authors, has released a research paper presenting [“privacy pools”](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4563364) — a novel blockchain feature aimed at enhancing transaction privacy while distinguishing between lawful and illicit activities.

The paper, titled “Blockchain Privacy and Regulatory Compliance: Towards a Practical Equilibrium,” comes amidst rising concerns about blockchain privacy, especially as governments target criminal entities exploiting privacy mixers for money laundering.

While Tornado Cash, a notable crypto “mixer,” provides a privacy solution, it has garnered scrutiny from the U.S. Treasury for its alleged association with the North Korean hacking group Lazarus. Buterin acknowledges Tornado Cash’s privacy efforts but emphasizes its inability to detach from illicit network activities.

The proposed privacy pools leverage zero-knowledge technology, potentially resolving the dual issue of transaction privacy and lawful distinction. By consolidating legitimate transactions, users can validate their transactions as originating from legitimate sources.

The paper states, “All users with ‘good’ assets have strong incentives and the ability to prove their membership in a ‘good’-only association set.”

#Matter Labs CEO advocates for an “Ethereum Supreme Court” to address on-chain disputes#

Matter Labs CEO Alex Gluchowski has presented an [innovative proposal](https://twitter.com/gluk64/status/1697964707548676245?s=20) for an on-chain court system on the Ethereum network, drawing inspiration from real-world hierarchical court structures.

In a recent Twitter post, Gluchowski envisioned an “Ethereum Supreme Court” that would operate similarly to the U.S. Supreme Court. This proposed court would offer a final recourse for smart contract disputes, eliminating the need for traditional legal routes.

Gluchowski emphasized that such a system would primarily shield protocols from external political interference, positioning Ethereum as a formidable network state. His proposal outlines a tiered system of on-chain courts that handle disputes and emergency upgrades, with the final appellate jurisdiction being the Ethereum layer-1 soft fork, dubbed the “Court of Final Appeal.”

![Matter Labs CEO advocates for an “Ethereum Supreme Court” to address on-chain disputes](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/aulcqwqvpk0kbokcd7m5.png)

Every protocol, such as Aave or Uniswap, would possess its governance mechanisms for standard and emergency upgrades in this framework. These protocols could then escalate disputes to intermediary courts like CourtUnchained or JusticeDAO. Should disagreements persist, they would advance to the Ethereum Supreme Court.

However, he acknowledges the system’s operational viability hinges on robust social consensus. He further noted that the court’s use would be cost-intensive, ensuring that only truly exceptional cases reach it.

Addressing existing dispute resolution methods, Gluchowski critiqued their effectiveness. He highlighted the risks associated with solutions like security councils and emphasized the potential vulnerabilities in the current system.

Closing on a proactive note, Alex mentioned that zkSync, Matter Labs’ Ethereum layer-2 solution, is keen on funding research into this groundbreaking proposal.

#17th online meeting of ERC 4337 core devs#
In a recent session, core AA developers convened to discuss the latest updates of the ERC 4337 Account Abstraction proposal.

For a comprehensive understanding of the discussions and viewpoints shared during the meeting, the full session is available on [YouTube](https://www.youtube.com/watch?v=_vWLYFHaSB8).

Watch recordings of previous core developer meetings[here](https://youtube.com/playlist?list=PLwO4AX1v74TPeNMJAOsG09r2FUdbc_JIo&si=RQw2VsNufsvKi7G4).

**Start exploring Account Abstraction with Etherspot!**

*Learn more about account abstraction here.
*Head to our docs and read all about Etherspot Prime.
*Skandha — developer-friendly Typescript ERC4337 Bundler.
*Explore our TransactionKit, a React library for fast & simple Web3 development.
*For a plug & play integration, review the BUIDLer react component.
*Follow us on Twitter and join our Discord.
❓Is your dApp ready for Account Abstraction? Check it out here: https://eip1271.io/