Account abstraction: Finding a balance between on- and off-chain activity

The possibility that user-intent based applications could theoretically censor user activity is a “potential threat,” Chase Chapman says

article-image

THAMTECT/Shutterstock modified by Blockworks

share

Account abstraction and concepts like user intents “add a ton of design to the space,” Chase Chapman believes. But the development of off-chain scaling solutions, she notes, could create centralized layers in the system. 

Dune headmaster Andrew Hong says he has spoken to a number of teams about the conundrum. Some apps, such as Uniswap or CoWswap, could implement gossip networks for the sake of transparency, he suggests.

“You can have a node network without a blockchain,” he adds. “That’s kind of what databases are, to begin with.”

Speaking on the On the Other Side podcast (Spotify/Apple), Hong says he doubts that every application will provide this level of participation, mostly for practical reasons. 

“If I’m a game developer,” he explains, “and I need things to move really quick, maybe for those [elements], it stays centralized and there’s nothing users can really do to force things to be otherwise.”

“There is some risk there.”

Hong concedes that in some cases, the trade-off between better user experience and adoption for some “layer of centralization” is probably worth it.  

“Let’s say I’m playing Magic the Gathering on-chain,” he says. In this hypothetical scenario, Hong says that while he might not be able to check the game’s logic as it operates on a centralized layer, he can verify that his on-chain cards are under his control.

“Some components? Yes, I really care,” he says. “Some other ones? It’s like, all right, worst case scenario, I still have my NFTs.”

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. “They’re minimizing the amount of unnecessary complexity on-chain,” she says.

“You still have the outcome of your transaction. You just don’t entirely know how it got there, which is probably the case for users anyway.”

The key is to ensure that users retain the option to act directly on-chain, Chapman says, by submitting transactions to the Ethereum public mempool. “But if they want to, they can basically opt into this intent-based system.”

Chapman mentions the example of Uniswap and the recently introduced UniswapX protocol. “If 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,” she says. “If you are worried about censorship, for example, then you can use Uniswap.”

This is not a one-way path

The possibility that UniswapX could theoretically censor user activity is a “potential threat,” Chapman says. She then wonders if it’s possible to limit activities to only interact with smart contracts through user intents.

“That, to me, is where things get a little bit scarier,” she says. “It’s basically like, forced use of a centralized provider versus optional opt-in use of a centralized provider.”

Hong notes that many mechanisms such as whitelists and airdrop lists are “already centralized ways” of limiting user activity. “Everything’s a balance,” he says. “Yes, if you centralize things so that you can only go through intents, there probably is a censorship risk to it.”

“People like to build,” he says. “I trust the community of developers to figure this out.”

Chapman retorts, “they’re gonna build it and then eventually get slapped by the CFTC — and then we’ll be like, oh shit, censorship is a problem in these systems.”

“And then we build backwards,” Hong replies.

“We can always go back to just the contract-based way of doing things,” he says. “This is not a one-way path.” Externally owned accounts (EOAs) and smart contracts are features that are “never going away,” Hong says. 

“There’s at least that saving grace.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

4.png

Research

This months PPGC covered four main areas. Firstly, debriefing the progress and status of the mainnet implementation of the Ahmedabad hard fork. Secondly, a retrospective on the testnet phase of the Ahemdabad Hard Fork. Thirdly, an update on PIP-36 which involves replaying failed state syncs. Lastly, PIP-47 which pushes upgrades to the Polygon Protocol Council.

article-image

Spain-based Banco Bilbao Vizcaya Argentaria has been working in the new Visa Tokenized Asset Platform sandbox

article-image

The retail crowd is engaging with Robinhood both on and off chain, general manager Johann Kerbrat said

article-image

Gurbir Grewal, who has been at the agency almost as long as Gensler has been chair, will depart on Oct. 11, 2024

article-image

The stablecoin’s supply has declined about 50% in the last month, from $660 million to $320 million

article-image

Plus, Sky’s soaring stablecoin and simpler bitcoin staking