Chain Abstraction

Interacting with DeFi can often mean navigating a complex maze of different chains, address types, protocols and fragmented liquidity pools. Something as simple as buying a token may require to bridge assets from one chain to another, acquire another gas token, and swap tokens on multiple different exchanges. Chain abstraction treats that fragmentation as something the software should handle, not the user.

In the most basic sense, it refers to any effort to streamline this process and push the nuts and bolts of blockchain into the background. Platforms which make use of this design approach present a simple front end where users can define their goals, then the underlying infrastructure automates a solution. Theoretically, users needn’t even know which blockchain they’re interacting with. Much like how most people use the internet without thinking about which server answered their request.

A wide range of onchain quality-of-life features fall under this definition. For example, smart contracts can be used to allow users to pay gas fees in whatever assets they hold, rather than requiring them to acquire a specific network token; intent-based trading mechanisms let users input basic information about their desired outcomes, while the trading engine routes funds through the necessary chains and protocols; and crosschain messaging services introduce shared settlement to stitch together disparate blockchains.

This results in simpler workflows with less chance of failed transactions or human error. However, it does not necessarily eliminate the underlying security concerns of crosschain operations. Routing value across different networks still incurs certain risks, with the solvers and messaging systems involved creating new points of failure.