Discover the concept of account abstraction wallets and their benefits. Explore top 5 notable account abstraction wallet projects In 2023.

What is account abstraction wallet?

For new users to interact with the blockchain, they must create a wallet, store their private keys, purchase & transfer funds, pay gas fees, and sign every action they take on a dApp. With such an intimidating user experience for newcomers, something must change.

This is why the “account abstraction” new standard ERC-4337 emerged!

Account abstraction wallet (ERC-4337) is an Ethereum update that lets you create non-custodial wallets as programmable smart contracts. It unlocks many possibilities, such as easy wallet recovery, signless transactions, and team wallets. This makes the web3 experience safer, faster, and more flexible.

Account abstraction wallet use cases:

• Wallet recovery: Unlike EOAs, a smart account’s security does not rely on a seed phrase or private key. A smart account owner can assign multiple devices, people, or third-party services as wallet guardians. In case they lose their credentials, the guardians can sign a transaction to assign new credentials to access the smart account. This does not compromise the user’s control or ownership of the assets.
• Batch transactions: Using smart accounts, we can batch multiple transactions together and approve all of them at once. For the first time, this can make DeFi transactions feel as simple as traditional finance transactions.
• Shared accounts & team wallets: Account abstraction lets you share different levels of access to your wallet with multiple users. So, you can create a multi-signature where two or more users must sign a transaction to execute it. Further, you may add users who can only pay limited amounts to a specific set of wallets within specific durations.
• Automated transactions: In the case of smart accounts, you can define a range of parameters such as access to specific tokens, spend limits, duration, gas limit, specific actions based on pre-defined triggers, and much more. The only limit is how far we can think.

Top 5 Notable Account Abstraction Wallet Projects In 2023

1. Argent Wallet: Social recovery, multisig, fee payment in stablecoins, multicall (bundling operations) at top speeds.
2. Safe Wallet: Advanced multi-signature options, transaction simulations, internal app store for interacting with Web3 applications.
3. Avocado Wallet: Support for multiple DeFi protocols, execution of multi-network transactions from a single interface, gas fee payment in USDC.
4. Ambire Wallet: Gas fee-saving mechanisms, email & password sign-up, built-in cross-chain transfers, NFT dashboard.
5. NEAR Wallet: Upgradability, flexible gas fees, user-friendly wallet addresses, ability to change seed phrase, delegation of fee payments to third parties.

1. Argent

Introduce Argent

Argent is one of the most interesting smart contract wallets out there, targeting specifically newcomers to crypto and concentrating on Layer 2 operations. It offers top smart account features like social recovery, multisig, fee payment in stablecoins, or multicall (bundling operations) at top speeds.

Argent delivers a sleek product focusing on secure self-custody at the most convenient costs, which is what it’s currently deployed only on Ethereum mainnet and Layer 2 chains zkSync and StarkNet. This configuration follows the brand’s vision, doubling down on the networks they see as the operational working chains of our future Web3.

A mobile-first wallet, Argent is available on iOS and Android, although Argent X, used for navigating and operating on StarkNet, is a browser wallet.

Mission and Vision

To create a future where money and the internet are more open and fair, ensuring equal economic opportunities for all individuals with internet access. They believe in the potential of this brave new future, achievable through cryptocurrency.

Argent’s mission is to empower everyone with control over their digital assets and identity, enabling them to prosper securely. They have developed the world’s most user-friendly and secure smart wallet, accessible to anyone with a smartphone. Users have complete ownership and control over their assets, identity, and rights.

Argent provides many functionalities beyond traditional banking services, combining beautiful design with bulletproof security. They aim to make cryptocurrency accessible to the mainstream and stimulate breakthroughs, businesses, and opportunities. Their first mission is to provide 1 million people with an Argent wallet.

Key Highlights of Argent Wallets

2. Safe

Introduce Safe

Safe is one of the earliest smart contracts deployed on the Ethereum network, with a strong emphasis on securing the custody protocol and establishing a superior ownership standard.

Through Account Abstraction, Safe offers advanced multi-signature options, transaction simulations, and an internal app store for interacting with Web3 applications.

In comparison to other wallets, Safe places less emphasis on streamlining user experiences or simplifying onboarding, featuring a somewhat complex interface that may be perceived as daunting by crypto beginners.

Mission and Vision

Previously called Gnosis Safe, Safe spun out with a mission to build a better standard for ownership with smart contract accounts. Since 2018, Safe has grown to support several EVM chains.

Key Highlights of Safe Wallet

3. Avocado

Avocado is built by Instadapp, a DeFi-oriented developing platform that connects protocols and dApps working on EVM. It packs most of the features that the pioneers of account abstraction have already mastered and can support multiple DeFi protocols from a single interface (like a blockchain aggregator). This enables users to execute multi-network transactions while being connected to a single network.

However, the transaction fees on Avocado are currently paid only in USDC, thus limiting user use cases. The underlying tech could accommodate other options in the future. Avocado Wallet is a decentralized web application (dApp) available on desktop and mobile.

Mission and Vision

Avocado aims to revolutionize DeFi by providing a smart contract wallet for seamless multi-network transactions. With account abstraction and a dedicated RPC, Avocado enables users to transact on any supported chain without multiple wallets or native tokens. Avocado simplifies the user experience, increases accessibility, and promotes DeFi adoption.

Key Highlights of Avocado

• The Avocado network is connected to a deterministic smart contract with its own RPC node.
• The network can read on-chain data and send transactions to different blockchains.
• Wallet addresses linked to external wallets are automatically created when connected to the Avocado network.
• Tokens on supported chains can be sent and received through the network wallet.
• Gas fees are paid through USDC, which can be added from any chain and paid on any chain.
• The smart contract handles the conversion of gas fees in the background.
• The smart contract wallet simplifies the process of interacting with decentralized applications.
• Avocado’s gas scalar feature could create significant value for $INST if there are integrations and use on the network.

4. Ambire Wallet

Launched in late 2021 as an account abstraction native solution, Ambire Wallet offered from the get-go advanced features like batching transactions, multisig, or fee payment in stablecoins on multiple chains. Pivoting from blockchain advertising solution AdEx Network, the company is based in Estonia and has Eastern-European roots, while the team is distributed.

These builders focus on delivering a user-friendly interface backed by a high level of security and operation complexity. They were the first to offer gas fee-saving mechanisms: the Gas Tank helps you save on transactions and lets you pay in whatever token you have. Most notably, they were also the first self-custodial wallet to offer email & password sign-up, bridging Web3 tech with Web2 UX best practices.

Ambire Wallet is available as a web app and mobile app for iOS and Android. The team plans to launch a browser extension and desktop apps, ensuring a complete product line-up for every need.

Mission and Vision

Ambire Wallet aims to provide a secure and user-friendly interface, bridging the gap between Web3 technology and Web2 user experience for individuals in the crypto space.

Ambire Wallet envisions becoming a leading self-custodial wallet that combines advanced DeFi features with an intuitive UI. With its built-in bridge, earn and swap functions, and dApp Catalog, Ambire aims to provide a comprehensive solution for crypto enthusiasts. By supporting multiple EVM chains and continuously expanding capabilities, Ambire Wallet empowers users to navigate the crypto landscape with confidence.

Key Highlights of Ambire Wallet

• NFT dashboard
• Built-in cross-chain transfers thanks to Socket
• Multiple new EVM networks, including Moonbeam, Moonriver, Arbitrum, Optimism, Metis, Gnosis Chain
• Multiple new on- and off-ramps, including Kriptomat, Guardarian, Transak and others
• Asset migration: with a couple of clicks, you can safely move assets from your EOA wallet to your smart contract wallet account on Ambire
• The Gas Tank: a feature that allows users to pre-pay fees to the relayer, significantly saving on costs: instead of paying network fees for each transaction, you just pay once
• dApp Catalog —  the doorway to navigate web3 dApps safely (diminishing the risk of phishing attacks), straight from the Ambire dashboard

5. NEAR Wallet

With infrastructure that has integrated Account Abstraction (AA) from its early stages, Near Wallet, built on the Near Protocol, appears to fully leverage all AA features, such as upgradability, flexible gas fees, and user-friendly wallet addresses (instead of lengthy character strings, users can assign memorable names to wallet addresses). Near Wallet is a subsidiary project of Layer 1 Near Protocol, which has successfully raised over $500 million.

Distinctive features of Near Wallet include the ability to change the seed phase and the capability to delegate fee payments to third parties. These features make Near Wallet stand out in the realm of AA wallets.

Mission and Vision

The NEAR wallet aims to provide a secure and user-friendly platform for managing and interacting with NEAR accounts and assets. It offers a diverse range of high-quality, open-source wallets to cater to users’ specific needs. Supported by NEAR’s active community, the NEAR wallet ecosystem reflects a commitment to decentralization and the growth of the NEAR ecosystem.

What’s Next for the NEAR Wallet

In July, the NEAR Foundation discussed the transition of NEAR Wallet from a browser wallet to a wallet hub. This shift highlights the significant growth of the NEAR ecosystem, which now provides various cross-chain wallets and native wallets. As part of this wallet transformation, the discontinuation of the NEAR Wallet is scheduled for October 31, 2023.

Users have the option to transfer their accounts to their preferred wallet using the automatic Wallet Transfer Wizard integrated into the current NEAR Wallet or manually by using their recovery phrase. Regardless of the chosen method, it is important to note that user accounts and assets will remain secure.

Users who are unable to transfer their accounts by October 31, 2023, do not need to worry, as the Transfer Wizard will still be available after the wallet functionality sunsets. It is crucial to remember that assets will remain secure until they are imported into a new wallet.

Key Highlights of NEAR Wallet

• Support for NEAR’s unique account model
• High-quality, open-source wallets
• Diverse list of cross-chain wallets
• Native wallets with innovative onboarding approaches
• Wallet Transfer Wizard for easy and secure account migration
• Browser and Extension-based wallet options
• Wallet hub for discovering and implementing the right wallets
• Timeline for transitioning the main wallet domain
• Continued availability of the Transfer Wizard after functionality sunsets
• Introduction to various wallet options in the NEAR ecosystem
• Improved user experience and compatibility with Web3 experiences

Conclusion – Account Abstraction Wallet

In conclusion, the account abstraction wallet (ERC-4337) is an Ethereum update that introduces non-custodial wallets as programmable smart contracts. It offers various benefits such as easy wallet recovery, signless transactions, batch transactions, and shared accounts/team wallets.

Traditionally, users needed to create wallets, secure private keys, manage funds, pay gas fees, and sign every action taken on a decentralized application (dApp). The complex and intimidating process discouraged many potential users. The ERC-4337 standard changes the game by enabling the creation of non-custodial wallets as programmable smart contracts.

Account abstraction wallet opens up a range of possibilities, including simplified wallet recovery, signless transactions, and the ability to manage team wallets. The result is a safer, faster, and more flexible web3 experience. Several smart contract wallets, including Argent, Safe, Avocado, Ambire Wallet, and NEAR Wallet, have embraced account abstraction and provide unique features and functionalities to empower users in managing their digital assets securely.

These wallets strive to simplify the user experience, increase accessibility, and promote the adoption of decentralized finance (DeFi). With the continuous evolution of account abstraction, we can expect further advancements in the realm of smart contract wallets and the broader crypto ecosystem.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.