One of the biggest pieces of news from the ETHDenver 2023 convention that has just finished was the introduction of the new ERC 4337 account abstraction standard on the Ethereum blockchain.

This new standard for creating smart wallets is considered to be the missing piece for mass adoption by many Ethereum enthusiasts as it brings several benefits like the implementation of a 2FA authentication or a social wallet recovery via Guardians.

The hype around the new account abstraction standard is huge in the Ethereum community but for users of the Loopring Smart Wallet, this new standard is more or less an old hat as they can already enjoy the benefits of a smart wallet right now. 

The New ERC 4337 Account Abstraction Standard

ERC 4337 sounds extremely technical but let me ensure you that this new standard is not only for nerds. The opposite is the case as this new account abstraction standard will enhance the user experience.

With the new standard, so-called smart wallets can be created that do exist entirely on the blockchain. Such a smart on-chain wallet brings several benefits for its users like paying gas fees with different ERC20 tokens, social recovery via Guardians instead of a traditional seed phrase, 2FA, processing multiple transactions at once, recurring payments, spending limits, and whitelisting of Ethereum addresses.

The Missing Piece For Mainstream Adoption?

A smart wallet brings features that are not only beneficial but already known in the Traditional Finance Sector. These are features that users expect and require if they want to make the big move from Traditional Finance to Decentralized Finance and WEB3.

Especially account recovery and login abstraction are two extremely important features to encourage more people to say goodbye to Traditional Finance and become their own bank. In the event of a death, for example, the heirs could have easier access to the wallet.

For this reason, many Ethereum enthusiasts consider the new ERC 4337 standard the missing piece for mainstream adoption.

The Loopring Smart Wallet

These "killer features" of the new ERC 4337 account abstraction standard are more or less an old hat for users of the Loopring Smart Wallet. They can enjoy these convenient features for almost two years now.

Loopring is one of the pioneers in the Ethereum Space building these innovative features like account abstraction. In short, Loopring is a zkRollup protocol that sits as a second layer on top of the Ethereum blockchain and tries to fix the current issues like high transaction fees and long transaction times.

Several non-custodial, high-performance products have already been built on Loopring's Layer 2, including the Loopring Smart Wallet and the Loopring Exchange. 

With the Loopring Smart Wallet, seed phrases have already become redundant. The wallet recovery works via social Guardians or alternatively a cloud. You can even protect your wallet against thieves by setting a 2FA, daily spending limits, and whitelisting addresses.

All of these features are coming with the speed and the cost-efficiency of Loopring's Layer 2. You are still enjoying the safety of the Ethereum blockchain but at up to 1/100th the cost and near-instant speed. 

Byron from Team Loopring stated on Twitter that the new ERC 4337 standard will completely decentralize the relayer process. Right now, most of the L2 Smart Contract Wallet services are performed by a single relayer. The new smart contract wallet will then have a decentralized solution for its operations. Rather than relying on a centralized component to cover users’ transaction fees, anyone will be empowered to pay for the required gas fees.

However, the benefits of the new ERC 4337 standard are already there and ready to use while constantly improving. 

My Final Words

I hope that I could provide you with some useful information about the new ERC 4337 account abstraction standard as well as about the Loopring Smart Wallet. 

If you like to keep yourself up to date about the latest developments on Loopring, I recommend signing up for Loopring’s Quarterly Update and following Loopring on their various social media channels:

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