What is blockchain abstraction?

Blockchain, or simply chain abstraction, has become a prominent web3 topic as developers, users and enthusiasts seek ways to onboard new users and broaden the scope of the overall crypto ecosystem.

Blockchain abstraction refers to simplifying blockchain technology’s end-user experience by separating it from the blockchain’s complex underlying technology while maintaining its core benefits.

This makes it easier for users and developers to interact with blockchain applications without needing deep technical knowledge. 

Why is chain abstraction needed?

Despite improvements in the usability of various blockchain applications over the years, certain technical complexities still often persist that can prove challenging for average users. Users new to blockchain might be used to simply using U.S. dollars or their credit card to make whichever purchases they please, but once they attempt to buy an NFT for the first time, they may discover they do not have assets on the right blockchain, and thus cannot make the purchase. Or perhaps they attempt to send USDT to their wallet but select the wrong network and lose the funds. While these actions may seem straightforward to an experienced “crypto native” user, for new users it can be clunky and confusing. 

Blockchain abstraction seeks to rectify this by increasing the usability and interoperability of various blockchain networks. Interoperability refers to the ability of different blockchain systems to communicate, share data and work together seamlessly. This means that assets can be transferred between different blockchain networks without intermediaries. Building applications with more inherent interoperability would spare the user the need to bridge between chains, allowing them more direct access to DeFi protocols or NFT markets.

Just as the internet became widely adopted when it abstracted the complexities of HTTP and TCP/IP, or computers in general with Windows and Apple operating systems, blockchain needs to do the same to reach mainstream users. By providing familiar user experiences, like simple sign-ins and one-click interactions, blockchain abstraction aims to replicate the usability of popular web2 applications.

What are some examples of chain abstraction?

User-friendly interfaces are an example of blockchain abstraction. Wallets like MetaMask or Phantom simplify the process of managing private keys and making transactions. Instead of dealing with cryptographic details, users can send and receive cryptocurrencies through more intuitive interfaces similar to online banking apps. MetaMask, for instance, allows users to interact with the Ethereum blockchain directly from their web browsers, making blockchain technology accessible to anyone familiar with using a browser extension.

These wallets have also rolled out features over the years to allow users more options, such as in-app bridging or swapping, removing the need to find and connect to an external bridge to transfer assets between blockchains.

NEAR protocol is Layer 1 blockchain that has implemented certain aspects of blockchain abstraction, and it is an important goal of its founders as it can lower the barrier to entry for users. One method is by using human-readable accounts, allowing interactions using names instead of complex wallet addresses.

Middleware solutions like Chainlink provide another layer of abstraction by connecting blockchain smart contracts with external data sources. This is crucial for applications that rely on real-world data, such as DeFi platforms. Chainlink’s decentralized oracle network fetches data from various sources and feeds it into smart contracts, abstracting the complex process of integrating external data with blockchain applications.

Account abstraction on Ethereum

Ethereum founder Vitalik Buterin has also commented on account abstraction, saying that account abstraction is the way to provide security and convenience for blockchain developers and users while speaking at a conference in South Korea. Ethereum’s account abstraction standard, also known as ERC-4337, aims to enable user wallets to work as smart contracts without having to manage externally owned accounts and their private keys. ERC-4337 allows for more advanced features such as multi-signature wallets, social recovery mechanisms, and custom validation rules directly within user accounts. By shifting validation logic from the core protocol to the account level, users can implement personalized security measures, potentially making their accounts more resilient to unauthorized access and potential breaches​.

ERC-4337 could have substantial benefits for users. For instance, users can enjoy more flexible and secure ways to manage their accounts through features like multi-signature authentication, where multiple private keys are required to authorize transactions, significantly reducing the risk of hacks. Additionally, social recovery options allow users to regain access to their accounts through trusted contacts, mitigating the impact of lost private keys. Furthermore, ERC-4337 facilitates gas fee abstraction, which would allow users to pay transaction fees with tokens other than Ether or even have third parties sponsor their fees for them.