December 8, 2023

Ethereum co-founder Vitalik Buterin has hinted at an upcoming upgrade to the ethereum network that could reduce costs by a factor of 100, amid a rally in the cryptocurrency market.

during his speech Ethereum At the Community Conference (EthCC) in Paris, Buterin announced the introduction of account abstraction arrive Ethereum. He described the proposed upgrade as “super elegant” because, unlike previous upgrades, its implementation would not require modifications to ethereum’s underlying protocol.

Smart contracts, smarter agreements

Account abstraction envisions turning externally owned wallets into smart contract-based wallets, Increase user control over their private key seed phrase, similar to resetting an email password. This also translates into lower transaction fees through “unsigned transactions”.

Buterin elaborated on the potential benefits:

“The idea here is that if you have these techniques that allow you to take many signatures from any transaction, combine them into an object that is much smaller and faster to verify than verifying all account abstract transactions individually, and by doing that, you save data (and) the computational cost will be 100 times lower.”

Smart contract wallet upgrade will further empower Ethereum users receive various cryptocurrencies and pay network fees No need to convert to Ethereum.

However, the statement also acknowledged the challenges ahead. Account abstraction is expected to attract a billion users to Ethereum, but it is not without its hurdles.

During the discussion, Buterin acknowledged that upgrading existing ethereum external accounts to smart contracts and ensuring the protocol works similarly in layer 2 solutions will be significant challenges. Other difficulties include integration with existing technologies such as biometrics and wallets.

Despite these hurdles, Buterin expressed enthusiasm for the project’s progress. The introduction of the account abstraction could revolutionize the Ethereum experience, enabling users and decentralized applications (DApps) to initiate transactions more efficiently. It also enables more economical data usage and faster verification times.

The news comes as the cryptocurrency market includes bitcoin and Ripple XRPis undergoing a renaissance that highlights the dynamic and ever-evolving nature of this space.

Account abstraction and the future of Ethereum

While the implementation of account abstraction has been hailed as a technological breakthrough, the complex process of this upgrade deserves careful exploration. On a practical level, account abstraction means turning an externally owned wallet into a smart contract-driven wallet. This shift could simplify the recovery of private key seed phrases, lower transaction fees, and even enable Ethereum users to accept multiple types of cryptocurrencies without conversions. That means it could be 100x cheaper in terms of data savings and computational costs.

“This is actually especially important for rollups, where a significant portion of the transaction size is the signature on the rollup,” Buterin said.

However, despite this, as Buterin pointed out rather pointedly, the transition will not go smoothly without the necessary challenges.Key upgrades to the Ethereum ecosystem, such as turning existing external accounts into smart contracts and ensuring protocol Compatibility with Layer 2 Solutions is an obstacle that must be overcome. The integration of this new system with existing technologies such as biometrics and today’s wallets creates further complications.

However, an air of optimism surrounding the account abstraction is palpable. Buterin’s enthusiasm suggests that despite the challenges, the potential rewards could be transformative, propelling ethereum to new heights of user accessibility and network Ethereum ready The industry is excited about this innovative leap, preparing for the potential arrival of a more dynamic era in the Ethereum saga.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.