{"id":163922,"date":"2023-09-27T22:02:11","date_gmt":"2023-09-27T16:32:11","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=163922"},"modified":"2023-09-27T22:02:11","modified_gmt":"2023-09-27T16:32:11","slug":"account-abstraction-finding-a-balance-between-on-and-off-chain-activity-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/account-abstraction-finding-a-balance-between-on-and-off-chain-activity-crypto-news\/","title":{"rendered":"Account abstraction: Finding a balance between on- and off-chain activity &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Account abstraction and concepts like user intents \u201cadd a ton of design to the space,\u201d Chase Chapman believes. But the development of off-chain scaling solutions, she notes, could create centralized layers in the system.\u00a0<\/p>\n<p>Dune headmaster Andrew Hong says he has spoken to a number of teams about the conundrum. Some apps, such as <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/tag\/uniswap\">Uniswap<\/a> or <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/cow-swap-mev-problem\">CoWswap<\/a>, could implement <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.educative.io\/answers\/what-is-gossip-protocol\">gossip networks<\/a> for the sake of transparency, he suggests.<\/p>\n<p>\u201cYou can have a node network without a blockchain,\u201d he adds. \u201cThat\u2019s kind of what databases are, to begin with.\u201d<\/p>\n<p>Speaking on the On the Other Side podcast (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/open.spotify.com\/episode\/101RCD9YhLhCFNLewVx5qP?si=6028ae8e6ed24675\">Spotify<\/a>\/<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/podcasts.apple.com\/us\/podcast\/91-intents-as-protocol-moats-w-andrew-hong\/id1570685120?i=1000629396628\">Apple<\/a>), Hong says he doubts that every application will provide this level of participation, mostly for practical reasons.\u00a0<\/p>\n<p>\u201cIf I\u2019m a game developer,\u201d he explains, \u201cand I need things to move really quick, maybe for those [elements], it stays centralized and there\u2019s nothing users can really do to force things to be otherwise.\u201d<\/p>\n<p>\u201cThere is some risk there.\u201d<\/p>\n<p>Hong concedes that in some cases, the trade-off between better user experience and adoption for some \u201clayer of centralization\u201d is probably worth it.\u00a0\u00a0<\/p>\n<p>\u201cLet\u2019s say I\u2019m playing Magic the Gathering on-chain,\u201d he says. In this hypothetical scenario, Hong says that while he might not be able to check the game\u2019s logic as it operates on a centralized layer, he can verify that his <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/crypto-gaming-web3-argus-labs-web2\">on-chain<\/a> cards are under his control.<\/p>\n<p>\u201cSome components? Yes, I really care,\u201d he says. \u201cSome other ones? It\u2019s like, all right, worst case scenario, I still have my <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/tag\/nfts\">NFTs<\/a>.\u201d<\/p>\n<p>The user intent mechanism is an attempt to find a balance between what does and does not need to be on-chain, according to Chapman. \u201cThey\u2019re minimizing the amount of unnecessary complexity on-chain,\u201d she says.<\/p>\n<p>\u201cYou still have the outcome of your transaction. You just don\u2019t entirely know how it got there, which is probably the case for users anyway.\u201d<\/p>\n<p>The key is to ensure that users retain the option to act directly on-chain, Chapman says, by submitting transactions to the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/mev-privacy-in-blockchain\">Ethereum public mempool<\/a>. \u201cBut if they want to, they can basically opt into this intent-based system.\u201d<\/p>\n<p>Chapman mentions the example of Uniswap and the recently introduced <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.uniswap.org\/uniswapx-protocol\">UniswapX<\/a> protocol. \u201cIf you want to take advantage of an intents-based architecture, where you have gasless transactions and you might actually end up getting a better rate, you can use UniswapX,\u201d she says. \u201cIf you are worried about censorship, for example, then you can use Uniswap.\u201d<\/p>\n<h2 class=\"wp-block-heading\" id=\"this-is-not-a-one-way-path\">This is not a one-way path<\/h2>\n<p>The possibility that UniswapX could theoretically censor user activity is a \u201cpotential threat,\u201d Chapman says. She then wonders if it\u2019s possible to limit activities to only interact with smart contracts through user intents.<\/p>\n<p>\u201cThat, to me, is where things get a little bit scarier,\u201d she says. \u201cIt\u2019s basically like, forced use of a centralized provider versus optional opt-in use of a centralized provider.\u201d<\/p>\n<p>Hong notes that many mechanisms such as whitelists and airdrop lists are \u201calready centralized ways\u201d of limiting user activity. \u201cEverything\u2019s a balance,\u201d he says. \u201cYes, if you centralize things so that you can only go through intents, there probably is a censorship risk to it.\u201d<\/p>\n<p>\u201cPeople like to build,\u201d he says. \u201cI trust the community of developers to figure this out.\u201d<\/p>\n<p>Chapman retorts, \u201cthey\u2019re gonna build it and then eventually get slapped by the CFTC \u2014 and then we\u2019ll be like, oh shit, censorship is a problem in these systems.\u201d<\/p>\n<p>\u201cAnd then we build backwards,\u201d Hong replies.<\/p>\n<p>\u201cWe can always go back to just the contract-based way of doing things,\u201d he says. \u201cThis is not a one-way path.\u201d Externally owned accounts (EOAs) and smart contracts are <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/news\/ethereum-erc4337-account-abstraction-smart-contract\">features that are \u201cnever going away<\/a>,\u201d Hong says.\u00a0<\/p>\n<p>\u201cThere\u2019s at least that saving grace.\u201d<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n<p><strong>Don\u2019t miss the next big story \u2013 join our\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockworks.co\/newsletter?source=end\">free daily newsletter<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Account abstraction and concepts like user intents \u201cadd a ton of design to the space,\u201d Chase Chapman believes. But the development of off-chain scaling solutions, she notes, could create centralized layers in the system.\u00a0 Dune headmaster Andrew Hong says he has spoken to a number of teams about the conundrum. Some apps, such as Uniswap [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":163923,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-163922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/163922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=163922"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/163922\/revisions"}],"predecessor-version":[{"id":163925,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/163922\/revisions\/163925"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/163923"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=163922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=163922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=163922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}