Title: Empowering Innovation: ERC-4337 Account Abstraction Grant Round Recipients

Author: ERC-4337

Compiled by: Deep Tide TechFlow

The ERC-4337 account abstraction grant program has successfully concluded. This grant initiative will support 18 teams in building diverse projects around ERC-4337 (also known as account abstraction).

Each team's project uniquely aligns with the goals of the ERC-4337 AA grant, and we believe the outcomes of these efforts will resonate throughout the ecosystem, sparking new ideas and collaborative opportunities.

The passionate and talented individuals driving these projects are the core of this round of funding's success. They demonstrate a profound understanding of the Ethereum spirit and are committed to pushing the boundaries of possibility. The recipients of this round of funding possess a variety of skills and experiences, collectively dedicated to advancing Ethereum's capabilities.

To understand the various projects and leading teams, we have written project overviews provided by the teams themselves (in no particular order). As these projects progress, we eagerly anticipate their advancements and the potential impact on Ethereum's developmental trajectory.

ZeroDev Kernel

ZeroDev Kernel, abbreviated as Kernel, is a smart contract account designed from the ground up with the following features:

• For AA wallets - Kernel is compatible with ERC-4337;

• Efficient - We place a strong emphasis on optimizing its Gas usage;

• Modular - Kernel can be extended through "plugins."

Plugins are smart contracts that customize account behavior. We recognize that it is impossible to predict users' needs for smart contract accounts, as they will interact with many different DApps during their account usage. Therefore, the only solution is to make accounts extensible so that users can add new functionalities to their accounts over time.

As of the writing of this article, Kernel is the most widely used AA account across all major EVM networks (Ethereum/Polygon/Arbitrum/Optimism/Base). Kernel is a project of ZeroDev, which provides infrastructure and tools for developers to integrate AA.

Etherspot's Skandha Bundler

ERC-4337 introduces a dedicated memory pool set up for account abstraction wallets. Additionally, it proposes a novel concept called "bundler," which merges user operations into the traditional transaction framework. This bundler-driven approach allows for the execution and implementation of account abstraction without altering the underlying protocol. This mechanism also lays the groundwork for future seamless integrations. In this context, the importance of the P2P interface within the bundler becomes apparent. By integrating the P2P interface, user operations received by a specific bundler will propagate across all interconnected nodes. Therefore, even if a specific bundler exhibits faulty behavior or conducts transaction reviews, these user operations can still be processed by other bundlers in the network.

The Etherspot team has assisted the Ethereum Foundation in formulating the protocol specifications for the shared memory pool and is piloting the implementation of the shared memory pool (P2P interface) using Etherspot's bundler. Etherspot's bundler is named Skandha. It is already available on six test networks and eleven mainnets, including Ethereum, Polygon, Optimism, Arbitrum, Fuse, Mantle, Gnosis, Base, Avalanche, BNB, and Linea.

MynaWallet

MynaWallet is a contract account integrated with the government-issued identification card in Japan (Myna Card), which is currently held by approximately 100 million residents. MynaWallet enables users to seamlessly make token payments, transfer or receive NFTs, and execute any transactions supported by their accounts without being aware of the existence of cryptocurrency.

This has the potential to enable most Japanese residents to access cryptocurrency. We would be very pleased if this initiative could set a precedent, inspiring other countries to conduct similar experiments that connect their national identity infrastructure with Ethereum and introduce their residents to the world of cryptocurrency.

Blocto: AA Support for web3.js

We believe our Web3.js project not only aligns with the goals of the ERC-4337 AA grant but also plays a significant role in the broader field of dApp development.

To promote the development of ERC-4337, we decided to share 4337-specific RPC methods through Web3.js, such as sendUserOperation, estimateUserOperationGas, getUserOperationByHash, getUserOperationReceipt, and supportedEntryPoints.

By doing so, developers can focus on what truly matters to them: creating amazing dApps. For example, if dApps want to provide a better user experience, they can change the calling method from sendTransaction to sendUserOperation as long as the wallet provider supports this feature.

Blocto firmly believes in simplifying these processes, fostering the growth of a supportive dApp ecosystem, and ultimately ushering in a new era of decentralized applications that prioritize both developers and users.

Silius

Silius is a modular and efficient Rust implementation of an ERC-4337 bundler. The project fully aligns with the broader ERC vision and ecosystem, keeping pace with specification changes and supporting upcoming features such as P2P protocols and alternative memory pools. The structure of this bundler allows its core building blocks—main components and libraries—to be reused as building blocks in other AA projects within the ecosystem. Silius also contributes to the Rust Ethereum ecosystem by building and extending upon other Rust libraries and projects.

Schnorrkel.js

We should emphasize the fact that Schnorr signatures are enabled through account abstraction. Without account abstraction, each dApp would have to implement Schnorr signature handling in its contracts and explain to the world and EOA wallets why they must sign two messages (ECDSA for the memory pool and Schnorr for the actual transaction), making it very cumbersome to use. All these issues are resolved by account abstraction. Simply sign the UserOperation with Schnorr and pass it to the payment entity. The Schnorr signature verification is handled by the AA smart contract. In other words, AA enables different signature schemes.

Why use multi-signature Schnorr?

• Complexity is handled off-chain, making on-chain Schnorr verification very cheap (around 3k gas);

• Privacy - On-chain, no one knows the number of participants, as they are represented by a single address.

QR-Seal is a fully ERC-4337 compatible Schnorr multi-signature wallet that utilizes the grant-winning Schnorr library, with AA and payment entities using the Ambire Wallet contract and Pimlico. We participated in the ETH Prague hackathon and won the ETH Future category award with QR seal. This hackathon highlighted how two individuals can create a multi-signature wallet and pass data through a QR code.

Ambire: Self-Sovereign Email/Password Authentication via DKIM

Email registration is a viable method for onboarding new users into the crypto world, as it provides a familiar process for access and recovery using email. We will offer a simpler, more localized way to add recovery mechanisms or transaction signatures to account abstraction wallets while providing enhanced security. This type of recovery or transaction signature will enhance the self-sovereignty and user experience of new users in Web3.

Such a library will reduce the workload required for other developers to provide a more user-friendly experience for their users while focusing on AA solutions.

Moreover, we believe that such applications will significantly attract new users to the Web3 world.

The library will be fully open-source and licensed under a permissive license like MIT, just like all our current efforts in DKIM verification or email/password accounts.

Ambire is a web-based account abstraction wallet launched at the end of 2021, and it was the first wallet to offer self-sovereign account creation through email/password authentication, thanks to the underlying 2/2 multi-signature.

After running on the mainnet and other EVM networks for a year, we believe that email/password accounts demonstrate how account abstraction can make Ethereum more inclusive. We find that email-based registration is very suitable for those who lack the technical ability or patience to handle seed phrases or browser extensions.

Ambire smart accounts offer options for multiple signers. We support two types of signers. The first is the email/password signer, and the second is EOA, such as hardware wallets, browser extensions (Web3 wallets), etc.

When using an email/password signer, Ambire creates a 2/2 multi-signature behind the scenes, where one key resides on your device and is encrypted with a password, while the other key is responsible for verifying the email confirmation code and is stored on the backend HSM. Controlling the account requires both keys, but only one key is needed to trigger the timed recovery process.

We provide recovery options for email/password accounts in case access to the password or email is lost. If only one key signs the transaction, the contract will trigger a 72-hour time-lock recovery. After 72 hours, the missing key in the transaction will be replaced by a new key provided by the user in the same transaction.

IoTeX: Zero-Knowledge Proof-Based Account Abstraction Wallet

Leveraging zero-knowledge proofs (ZKP), our zero-knowledge proof-based account abstraction wallet enhances and broadens the potential of on-chain applications such as gaming, DeFi, DeSocial, and DePIN, establishing interoperability between Ethereum and real-world applications.

This wallet uses zkSNARK to confirm account access: if the user has the correct password, they can generate a valid proof using the prover to unlock the account. The on-chain smart contract then verifies this proof to authenticate the transaction.

Our forward-looking vision involves applying zero-knowledge proofs to multiple aspects of account abstraction wallets, including wallet operations via web2 authentication, social recovery using web2 social media status, and initializing zero-balance wallets using universal web2 payment channels.

The project team consists of two senior researchers from the IoTeX team.

SixdegreeLab: On-Chain Data Analysis

The original vision of this project is to provide Web3 data analysts with the necessary knowledge and skills to adapt to the changes in Ethereum and EVM chain data structures caused by ERC-4337 and maintain effective on-chain data analysis. Specifically, the project will:

1. Provide several data metrics dashboards to help account abstraction practitioners understand the ecological data situation. At the same time, create an aggregated data table to assist analysts in their work.

2. Provide an educational tutorial document covering the impact of account abstraction on on-chain data analysis, which will be open to Web3 data analysts, enabling them to adapt to the new data structures and conduct effective on-chain data analysis in Web3.

3. As more participants engage in account abstraction, including infrastructure, dApps, and mainstream users, we need a data perspective report to illustrate the current adoption status of ERC-4337.

By addressing the impact of ERC-4337 on on-chain data analysis and exploring native account abstraction mechanisms in other Layer2 and EVM chains, this project can provide valuable insights and resources for data analysts working within the Ethereum ecosystem. This, in turn, can more effectively identify and mitigate vulnerabilities and performance issues on the Ethereum platform, helping to ensure its continued success and growth.

Overall, this project can help ensure that on-chain data analysis remains a valuable and effective tool for the Ethereum community and contribute to the growth and success of the Ethereum ecosystem by providing insights and resources for data analysts working in Ethereum, Layer2, and EVM chains.

Jam: Picnic's DeFi Transaction Batch Processor

Jam is an open-source API designed to generate DeFi operations for ERC-4337 applications. The goal is to enable developers to easily offer a variety of DeFi products through a simple API while making DeFi more accessible to end users. You can ask Jam how to perform specific DeFi operations and receive calldata that executes all necessary steps to complete in a single transaction.

Over the past two years, we (Picnic) have collaborated with various DeFi integrations and have felt the challenges of maintaining this infrastructure. We believe that the best way forward is to transform it into a public good, and the funding from the Ethereum Foundation is an excellent way to coordinate with the community.

TokenSight: Account Abstraction Multi-Factor Authentication Using WebAuthn

The problem TokenSight aims to solve relates to the security of on-chain smart contract wallets, focusing primarily on two overlapping directions—creating an ERC-4337 smart contract wallet with WebAuthn devices and providing developer tools for existing ERC-4337 wallets to add WebAuthn devices as a multi-factor transaction authorization mechanism.

Our approach is based on a fully on-chain implementation of a Gas cost-optimized WebAuthn signature verification scheme without using any MPC architecture, thus providing maximum security and decentralization.

The project team consists of Nasi and Blagoj, who have years of experience in the blockchain industry. We are passionate about smart contract security, and we believe that providing maximum security and a seamless user experience for funds in users' smart contract wallets is crucial for attracting the next billion users. We are currently building Tokensight, which will be the first application using our open-source WebAuthn wallet.

ZK-Team: Team Privacy-Preserving Account Abstraction from PriFi Labs

A valuable aspect of account abstraction is its ability to facilitate shared ownership of accounts among team members, allowing them to transact seamlessly as a unified entity. Organizations can create an abstract account and establish predefined rules to manage authorized individuals and their allocated spending limits. In a simple setup, team members' addresses and their corresponding allowances may be written to the blockchain. This raises a reasonable privacy concern, as organizations may not wish to publicly disclose this sensitive information.

ZK-Team is a proof of concept for a privacy-preserving abstract account that allows organizations to manage team members while maintaining individual privacy. By leveraging zero-knowledge proofs, ZK-Team enables transactions that ensure the confidentiality of team members' unique addresses and their associated allowances. We expect our project to become a one-stop solution for organizations managing teams and assets, as well as a reference for Ethereum developers wishing to protect the privacy of information stored in account abstraction using zero-knowledge proofs.

PriFi Labs is a startup based in Toronto, Canada, dedicated to researching how to enhance the security and privacy of blockchain applications.

Rhinestone: Modular Account Abstraction

Account abstraction promises enhanced security and meaningful user experience improvements without compromising the ethos of Web3. At Rhinestone, we believe the future of account abstraction is modular, where modules are smart contracts that extend the functionality of smart accounts, providing a new platform for permissionless wallet innovation.

However, opening smart accounts to third-party developers through modules increases the attack surface of user accounts. We are developing a standard for registering modules and declarations to state claims about the security of these modules. This registry serves as a trust delegation mechanism for smart accounts to query before installing third-party modules, increasing user security assurances.

AAA: Account Abstraction Afterhours

At AAA, it started with a simple idea—to raise awareness of AA and 4337. While we may no longer be coding in person, our passion for the technology and commitment to the widespread adoption of cryptographic technology remains steadfast. We firmly believe that account abstraction is key to driving widespread adoption.

From the initial developer meetups, we have evolved into a series of impactful events held across three continents. These events provide a platform for knowledge sharing and community building, perfectly aligning with the goals of the ERC-4337 AA grant.

Looking ahead, we are excited about further expanding our impact. Educational videos and interactive tutorials are on the way, enabling us to empower more people to engage with and understand cryptographic technology. We are honored to be part of this journey and are committed to making meaningful contributions to the field of cryptographic technology.

Unpacking 4337 - A Series of Technical Articles

The authors of this series of articles received a grant aimed at helping understand the operational mechanisms of EIP-4337 components. The goal is to reduce the time and effort required for developers and researchers to catch up on progress and begin focusing on specific areas they are interested in contributing further.

The three topics are:

1. User Operation Lifecycle: The journey of user operations in the bundler and the different functions called by the bundler at the entry point for validation and ultimately submitting them on-chain.

2. Understanding Different Gas Parameters: Several Gas parameters are specified at the bundler, memory pool, and user operation levels (as listed below). Explaining these parameters and their implications.

3. Explaining Different calldata Parameters: Input transaction calldata, UserOp.calldata, multi-send Txns calldata.

Hexlink: EIP-4972 - Linking ENS with ERC-4337 Accounts

Hexlink aims to provide all ENS users with an AA-compatible smart account that can be directly used via EIP-4972. Through Hexlink, each ENS name can derive a unique AA-compatible smart account that is deployed solely by the domain name owner and can be used to receive cryptocurrency immediately. Given that most ENS names are currently controlled by EOAs, we believe this dual-account setup will facilitate the migration from EOAs to smart accounts, transforming all existing ENS users into AA users and promoting broader adoption of AA.

UniPass: OpenID Authentication Module

Account abstraction enables developers to customize authentication logic and leverage various internet infrastructures for user authentication. Our UniPass team is introducing a novel user authentication solution that verifies the on-chain signature of ID tokens from the OpenID Connect protocol—an OpenID authentication solution for onboarding new users and recovery.

This solution works in conjunction with ERC-4337, providing new users using social logins like Google and Apple with one-click OAuth login and account creation convenience. Additionally, it simplifies the recovery process in case of key loss or damage. The project aims to build a library that allows ERC-4337 wallet developers to easily integrate OpenID authentication into their products.

Clave: Promoting secp256r1 Curve Support for AA

While account abstraction solutions are emerging, providing a better user experience without compromising security remains one of the main challenges. The Clave team (formerly Opclave) is researching and developing tools that utilize mobile device native software and hardware solutions as signers, elevating mobile wallets to the security level of hardware wallets by maximizing user experience. Here are some goals within this authorization scope:

• Sharing research outcomes utilizing solutions like Secure Enclave, WebAuthn, Passkeys, etc.

• Providing example code for using these solutions as transaction signers.

• Providing example code for smart contracts that handle these signed transactions.

• Offering example account contracts managed by these solutions through the integration of Solidity verifiers and precompiled contracts.

• Advocating for EIP-7212 to improve these solutions for efficient use in EVM.

The Clave team includes developers and researchers who first introduced this concept at the "ETHGlobal Scaling Ethereum 2023" hackathon. Now, the team is dedicated to providing account abstraction-driven accounts using the trusted execution environment of mobile devices as signers.