Author: 0xKofi, Cryptocurrency Data Analyst; Translator: LianGuaixiaozou
In a recent blog post, Vitalik described the adoption of smart contract wallets as one of the most important transformations Ethereum is currently facing.
ERC-4337 is the standard for smart contract wallets, also known as smart accounts. The main features of this system are as follows:
· Users perform pseudo-transactions called UserOperations (UserOps).
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· The Bundler bundles UserOps into a single on-chain transaction.
· Applications can use the LianGuaiymasters contract to represent users and pay gas fees.
Ethereum, Arbitrum, Optimism, and Polygon have deployed over 350,000 ERC-4337 accounts, with 83% of them being created just last month, showing exponential growth.
I analyzed the on-chain activities of ERC-4337 users and made the following findings:
In July of this year, Polygon experienced a significant increase in the usage of ERC-4337, mainly due to the launch of the CyberConnect social network, where all accounts are ERC-4337 wallets. CyberConnect performed approximately 360,000 UserOps in July alone.
Similarly, after the release of CyberConnect on L2, the usage of ERC-4337 on Optimism has significantly increased this week. The number of UserOps executed in the first four days of August is more than four times the total for July.
Beam is the second most popular app using ERC-4337 on Optimism, which is a smart account wallet tailored for stablecoin payments.
Most of the smart account activities on Ethereum are focused on liquidity staking. In July, 41% of UserOps were generated by users minting and transferring stETH, cbETH, and rETH.
(1) Metamask Snaps:
During the ETHCC conference, the Metamask team announced the launch of the Snap Keyring API, which allows developers to add new types of accounts to Metamask outside of EVM EOA. Keyring will add support for smart accounts later this year, as they believe smart accounts will play an important role in the future development of Metamask.
If you are running an ERC-4337 startup, you might be looking for a new opportunity, and it is recommended that you learn how to build Metamask Snaps.
Currently, ERC-4337 Bundlers have exclusive access to MEV extraction for any UserOps sent to them. Bundlers with significant activity can decide to either sell access to the order flow to MEV searchers or run their own MEV strategies.
In the long run, the plan is to create a public ERC-4337 memory pool where all UserOps will be submitted before packaging. I believe this will bring a lot of opportunities for products that provide real-time memory pool data services.
(3) Consumer app
The most successful consumer crypto app will have an abstract wallet experience, where account recovery, zero gas fees, and automatic operations will be standard features.
Currently, if you want to create a consumer crypto app, you must develop and review the custom implementation of this experience. The most popular crypto apps (such as Binance, Stake.com, Pornhub Premium, etc.) typically adopt a fully custodial form of funds management.
As the ecosystem develops, the team will be able to use ERC-4337 to provide most of these key features while offering self-custody or partial custody. Those features that are not inherent to 4337 may be built as plugins, and all modular account implementations can benefit from it. I am pleased to see that consumer crypto apps can recognize this potential and save a lot of development time as a result.