Original title: Announcing Smart Wallet-as-a-Service: Elevating ERC-4337 with Modular Infrastructure
Original article by: Carlos Maximiliano Cano, Ethan Francis, Particle Network
Original translation: Babywhale, Foresight News
Account Abstraction (AA) is a "big gamble" for Web3 to solve user experience problems.
Currently, the Web3 industry is looking for better products to compete with traditional products. In this context, Account Abstraction (AA) comes into being, which can assist in the construction of complex business scenarios and applications, bring better experience to end users, and bring greater flexibility to developers.
AA is a significant improvement over the existing Externally Owned Account (EOA) framework that dominates the EVM ecosystem. However, AA adoption must be led through decentralized, organic growth, with no direct roadmap to achieve this.
At the same time, WaaS tools allow end users to quickly create and manage wallets using only Web2 credentials. They also simplify the experience of interacting with DApps by signing and other activities directly in the application. In addition, thanks to some technical solutions (such as Particle Network's MPC-TSS), these wallets can also achieve non-custodial and security at the same time.
Current WaaS tools are a standalone, direct solution for seamlessly connecting users to Web3. However, Particle Network believes that incorporating AA into WaaS products is a way to accelerate the adoption of account abstraction, empower developers to build better applications, and upgrade Web3 infrastructure.
Therefore, we are proud to introduce Particle Network's Smart Wallet-as-a-Service Modular Stack, which is committed to providing developers with maximum flexibility in implementing AA in their applications. To introduce this product, let's first understand the motivation for releasing this product and the existing features of the WaaS tool. Then, we will introduce the features of the Smart WaaS Modular Stack and the benefits it can bring to developers and the entire ecosystem.
Shortcomings of the EOA Framework
To better illustrate the differences between EOA-centric WaaS tools and Particle Network’s Smart Wallet-as-a-Service modular stack, it is first necessary to understand the possibilities enabled by AA and how the EOA framework limits these possibilities.
The fundamental problem with the EOA framework is that it cannot meet application scenarios that require advanced logic or multi-step procedures, which are essential for complex applications. For developers, this means repetitive coding, inability to decide how users interact with their DApps, and a steep learning curve that is prone to errors.
AA solves these challenges through programmability, enabling transactions to automatically respond to on-chain events, perform regular multi-signature authorization for enhanced security, and enable more flexible and secure user authentication protocols directly within the wallet infrastructure. For developers, this also means a more flexible experience.
Currently, it is impractical to develop DApps for the following complex scenarios within the EOA framework, but AA makes it possible:
DeFi Aggregators: These aggregators can perform a variety of functions, such as enabling users to interact with multiple platforms at the same time, set up repeated interaction strategies with these platforms, use multiple types of tokens in activities at the same time, etc. If the user experience is attractive enough and fiat currency deposits and withdrawals are fully implemented, then AA opens up the possibility for non-custodial, fully decentralized, gas-free platforms to fully replace centralized platforms.
P2P microtransaction-driven social and media platforms: Even in low-fee L2 environments, EOAs make it hard for people to interact with social platforms. AA can improve this and make long-dreamed-of designs a reality: for example, a P2P microtransaction platform where viewers make micropayments to creators in proportion to their viewing time.
X-to-Earn, Gaming, and Income Democratization Platforms: AA can facilitate interaction and enable seamless transactions through session keys, which is ideal for scenarios that require continuous and fast transactions. As a result, "X-to-Earn" and Web3 gaming experiences can become more practical and more "addictive" for users. In this environment, democratized platforms that redistribute fees and income to users and token holders can also thrive.
When it comes to AA adoption, ERC-4337 is a key achievement as it enables working AA applications. However, as ERC-4337 is still not recognized at the protocol level, the development of AA depends largely on the community's organic guidance towards its decentralization. In this context, WaaS tools can play a key role in accelerating this process and can even serve as an intermediate step for some recommended approaches, such as voluntary migration (EIP-7377).
WaaS tools and their transition to an AA model
WaaS tools allow developers to focus on designing better experiences and make dealing with the underlying Web3 infrastructure easier. They do this by improving the user experience of setting up and using wallets, but as we explain in this article, they can do much more than that. WaaS tools can currently:
Simplify the process of creating a wallet when users log in to Web3 for the first time, allowing them to log in with their Web2 credentials for a seamless transition;
Simplify the transaction signing process by signing directly in the application;
Providing developers with a modular stack to implement the functionality they need in their DApps. This can include built-in customization tools to achieve the look and feel they want, as well as practical adaptability.
As the EVM ecosystem seeks to upgrade to an AA framework, WaaS tools that natively adopt AA can accelerate this process. To fully grasp this approach, it is key to understand the key differences between native and non-native AA implementations at the WaaS level.
Non-native account abstraction implementation
In a non-native implementation, the EOA WaaS provider acts as the signer (owner) of the Smart Account. In this design, the signer relies on a third-party application to align with a specific Smart Account implementation. The signer then manually validates the Smart Account's interactions through the EOA accessible through the WaaS service. This can result in the need to manually initialize the account and sometimes build/sponsor/push user actions, etc.
Refer to the example of initializing a Smart Account using a non-native AA solution.
Native account abstraction implementation
Native implementations of AA functionality support both users and developers. In the case of Particle Network, this refers to allowing end users to choose between using EOAs or Smart Accounts within their wallets. In this design, the EOA remains the signer of the Smart Account, but the assignment and unification of the two accounts is handled by the WaaS provider. In our native implementation, Smart Accounts are immutable across applications using the Particle Network Smart Wallet as a Service stack. This results in a more streamlined experience compared to non-native implementations and creates room for network effects.
Native implementations are more natural and simpler for developers. Particle Network’s AA SDK automatically handles account initialization, building user operations, and other prerequisites, eliminating the (common) requirement to manually perform user operations and smart account management when using many third-party AA stack components.
For an example implemented using the Particle Network AA SDK, refer to this link.
Native AA WaaS is the driver of widespread adoption
Given that AA is currently in the experimental stage, MetaMask and other market leaders are unable to integrate the technology at scale due to their size. Therefore, WaaS services currently have the greatest momentum and direct path to implementing these features, thanks to their position as the leader in user-onboarding solutions. With smooth user onboarding and native support, WaaS tools are critical to the adoption of Web3.
Native support also means that WaaS tools create an ideal framework for developers to explore how to integrate AA into their tools. This opens the door for modularity to come into play, and developers can decide:
Their goal Smart Accounts achieved;
What bundlers to use;
Is it possible to plug in other third party tools.
Given the unique role that WaaS tools play in accelerating AA adoption for Web3 UX, we believe that Smart WaaS is a natural evolutionary step. In our vision, these tools will allow developers to optimize their DApps with AA, enabling them to iterate faster in both quantity and quality, thus driving innovation and ultimately attracting more users to Web3 products. Taking into account all the factors we mentioned, the timeline for AA adoption may look like the following figure:
Possible AA adoption curve. In an ideal scenario, not only would AA adoption increase, but new Web3 users would also increase accordingly.
Particle Network's Smart Wallet-as-a-Service modular stack
Given all the points discussed above, Particle Network's Smart Wallet as a Service modular stack is setting out to create an ERC-4337 AA implementation that enables end-to-end adoption of AA, enabling developers to build the next generation of Web3 experiences. Particle Network's goal is to create a flexible experience for developers, allowing them to interact natively with AA while directly binding to Particle Network's WaaS instance.
Particle Network's Smart WaaS aims to provide developers with all the possibilities to leverage "WaaS+AA" in their applications, regardless of their complexity, functionality, backend implementation, etc. Ultimately, this enables them to choose the services and tools that best suit their application needs. Regardless of how developers specifically intend to implement AA in a given application, we have built in the required modules to fully utilize ERC-4337 provided by Particle Network's AA-SDK at any level of the underlying technology stack.
When building our Smart WaaS stack, we considered the following to be critical:
Seamless onboarding through WaaS and non-custodial key management: Particle Network’s existing WaaS implementation has MPC-TSS private key management capabilities. This, combined with social authentication, ensures that end users can quickly and securely join - regardless of their familiarity with Web3.
Leverage the flexibility of AA without compromising application complexity: This enables developers to develop a wide range of applications that take full advantage of AA's capabilities. Particle Network's AA-SDK enables programmatic interaction with Smart Accounts in very familiar ways, such as familiar transaction structures, builds, and account management patterns, all seamlessly handled by the SDK. This means that there is no need for complex operations to get started with AA, leverage Particle Network's WaaS for onboarding and account management, and then leverage Particle Network's AA SDK for post-AA operations and use with WaaS.
AA modularity through WaaS: Particle Network's AA SDK allows developers to approach AA in a modular way, easily plugging in their favorite smart account implementations, bundlers, paymasters, etc. As a WaaS provider, Particle Network also supports plugging in AA applications at any point, even if they did not originally use our AA SDK. Therefore, even non-native AA applications can leverage Particle Network's WaaS for adoption. This creates a fully customizable development experience for native and non-native applications.
The following figure shows Particle Network's AA modular solution and overall implementation:
Particle Network’s modular stack
To learn more about this modular stack, you can watch the tutorial below from Ethan Francis from Developer Relations on how to develop an app with minimal code (he provides an example of a gas-free implementation). In this video, Ethan uses our native AA SDK with built-in Biconomy support. You can also view the code for the example in the video at this link.
As a nascent field, AA has multiple smart account implementations to choose from, and the introduction of a comprehensive modular stack ensures developers greater flexibility. Modularity means they can also plug in their favorite components, while also being friendly to developers who don’t have too many customization requirements.
Infrastructure components of the Particle Network AA stack
Particle Network's AA stack ecosystem, with built-in support for more implementations coming soon.
Currently, Particle Network officially supports Biconomy's Smart Accounts for developers and users. However, in order to promote inherent modularity and cross-compatibility across the ecosystem, Particle Network will allow users and developers to select the specific Smart Account implementation they want to use in our SDK and user interface, providing an advanced solution that does not automatically default to a single provider.
Particle Network's native modular AA support (via native SDK, Particle Network's RPC, etc.), while powerful in its own right, also has inherent cross-compatibility with other AA stack providers due to Particle Network's nature as a WaaS provider.
Here are a few examples that leverage the Particle Network stack:
Use Particle Network's AA SDK for account management, Paymaster, and UserOp building, and push through Pimlico's bundler;
Use Particle Network’s AA SDK for account management, then manually build user actions, sponsorships, and push notifications with Pimlico’s Bundler and Paymaster (Demo);
In another Smart Account implementation use the EOA derived from our WaaS as the signer and select Bundler and Paymaster.
Particle Bundler
Particle Network has also built a proprietary Paymaster and Bundler. Particle Network's Bundler is completely open source and facilitates scalable and reliable ERC-4337 interactions. In fact, Particle Bundler has already enabled large-scale adoption of account abstraction in numerous public chains through partner programs, facilitating hundreds of thousands of transactions for opBNB, Scroll Sepolia, and Combo Testnet.
Particle Bundler simplifies user transactions by managing Smart Account Nonces and automatically sending user actions in batches. It simplifies the deployment of new chains with a single command, supporting more chains in five minutes. For developers, it provides features such as bundle signer configuration, automatic replenishment, and monitoring alerts. Bundler can efficiently handle high workloads and ensure fast transaction processing. With the support of a strong infrastructure, it can maintain operational stability under various conditions.
The main features of Particle Bundler include support for standard RPC, configurable signers, multi-chain support, repeated user operations, concurrent processing of user operations, integrated Gas Oracle, and a management system for multiple Bundler signers. Bundler can also automatically replenish the balance of bundler signers, retry failed transactions, and provide accurate transaction details under the influence of MEV. You can find more details in its open source announcement.
Internal and external implementation of Particle Network
safety
Particle Network’s smart WaaS implementation also has MPC-TSS-enabled security features to protect users’ data and assets. These security considerations are shown in the following figure:
MPC-TSS Security Settings for Particle Network
Particle Network uses a 2/2 advanced TSS scheme to ensure that a user's private key is not concentrated in one location or entity throughout its lifecycle. This scheme divides the key into two parts and stores them separately, ensuring that neither part leaks any information about the complete key. Particle Network also allows users to create a master password that is used to encrypt local key fragments and then store them securely. In this way, users can restore their wallets across devices in complete security. To learn more about this mechanism and why it is the safest choice for protecting user private keys in a non-custodial manner, please refer to the article "How to Choose a WaaS".
What’s next for Particle Network and Smart Wallet as a Service?
Account Abstraction, combined with Wallet-as-a-Service solutions, has the potential to transform the Web3 developer and end-user experience, making our ecosystem more attractive.
Particle Network's Smart Wallet as a Service modular stack is a significant upgrade to an already attractive product, emphasizing practicality and simplifying the process of developing user-friendly applications using AA. In this regard, Particle Network's integrated ecosystem is one of the main advantages of our guiding principle of pursuing flexibility.
In an upcoming announcement, we will introduce Particle Network’s Omnichain Account Abstraction, which will play an important role in the token-centric design of Particle Network’s upcoming v2. Around this innovation, Particle Network will debut a suite of new products for developers and end users, creating a more integrated and comprehensive environment.
The advancements in Smart WaaS described in this article are an opportunity to innovate and improve application performance. If you’ve read this far, we invite you to leverage Particle Network’s resources, including our detailed tutorials and comprehensive documentation, to integrate these enhancements into your project. As AA adoption increases, developers building super DApps that use AA will certainly play a key role in accelerating Web3 adoption.