Unexpected Surge in ERC-4337 Smart Contracts
In the fourth quarter of 2023, Alchemy witnessed a remarkable increase in ERC-4337 smart contracts, resulting in the creation of more than 960,000 accounts. This surge demonstrates the enthusiasm of app developers in addressing user experience challenges.
Rapid Adoption and Ethereum Foundation’s Deployment
Will Hennessy, Alchemy’s account abstraction lead, expressed his surprise at the quick adoption of ERC-4337 contracts. He attributed this rapid growth to the Ethereum Foundation’s recent deployment and developers’ eagerness to tackle user experience problems like gas sponsorship.
Smart Accounts Enhancing Efficiency and Convenience
Unlike traditional wallet accounts, smart accounts allow users to create “user operations” instead of just transactions. This innovation improves efficiency, particularly in trading and gaming. The introduction of sponsored transactions in ERC-4337 enables entities to cover gas fees for users, which simplifies account recovery and enhances security.
Lowering Barriers with Account Abstraction
Account abstraction plays a crucial role in making web3 apps more user-friendly. By implementing features like social login and gas sponsorship, it becomes easier for anyone to start using web3 apps. This approach attracts a diverse user base and lowers the barrier to entry.
Increase in User Operations and Paymasters
In Q4, there was a significant 194% increase in user operations performed by “bundlers,” driven by popular apps such as Grindery, FanTV, and Cyberconnect. Additionally, the introduction of paymasters allowed gas fees to be paid in ERC-20 tokens, covering an estimated $1.16 million in gas fees.
Hot Take: Alchemy’s Report Reveals Growing Interest in ERC-4337 Smart Contracts
Alchemy’s report highlights the unexpected surge in ERC-4337 smart contracts, indicating the growing interest among app developers to address user experience challenges. The Ethereum Foundation’s deployment and the introduction of sponsored transactions have played a significant role in this rapid adoption. Account abstraction has made web3 apps more accessible to a diverse user base, attracting more users with lower intent. The increase in user operations and the popularity of paymasters further demonstrate the positive impact of these innovations on efficiency and convenience within the crypto ecosystem.
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