Author: 0XNATALIE

When it comes to ERC-4337, it is probably familiar to everyone. Initially proposed by Vitalik in September 2021, it was deployed to the Ethereum mainnet in March 2023, and currently, multiple L2s have introduced improved versions into the core execution layer. However, ERC-4337 has not been widely adopted by wallets so far. In order to promote the standardization of account abstraction and network effects, Ethereum protocol contributor Alexander Forshtat proposed the RIP-7560 proposal (with Vitalik as the first author), which is the first Ethereum RIP aimed at establishing a native account abstraction standard that can be adopted by all L2 and L1.

RIP stands for Rollup Improvement Proposal. Construction began with the first RollCall on October 18th. The purpose of RollCall is to help L2 establish optional specifications and standards so that L2 can expand the EVM and related tools while limiting conflicts with the L1 EVM.

RIP-7560: Introduction of Native Account Abstraction

In order to standardize better, RIP-7560 introduces native account abstraction for consensus layer protocol changes and merges EIP-2938 and ERC-4337 into a comprehensive account abstraction proposal. Before delving into RIP-7560, you can read the previous article to review the concept of "account abstraction": "EIP-7377: Accelerator for Comprehensive Implementation of Account Abstraction (AA)?"

Compatibility and Coexistence with ERC-4337

The native account abstraction of RIP-7560 is compatible with ERC-4337, and these two account abstraction methods will coexist for a long time. RIP-7560 provides a migration path for projects adopting ERC-4337. However, projects currently using ERC-4337 need to make modifications to support native account abstraction in the future:

• UserOperation changed to TransactionType4: The original UserOperation structure and its name were designed to avoid confusion with actual Ethereum transactions. Since native account abstraction turns UserOperation into actual Ethereum transactions, it is renamed TransactionType4. Although the name has changed, the on-chain operation is similar to UserOperation.
• Upgrade of smart contract accounts: Smart contract accounts need to upgrade their implementation to support the native account abstraction protocol. Specific modifications include setting the EntryPoint address to a constant value within the system to simplify operations, renaming the validateUserOp function and changing its parameters, and no longer requiring accounts to maintain deposits in the EntryPoint contract to pay for gas, but instead deducting directly from their balance.
• Paymaster contract upgrade: The Paymaster contract needs to be upgraded or redeployed. For ERC-20 tokens and other assets, including state, approvals need to be manually migrated. The validatePaymasterUserOp function needs to be renamed and have different parameters, and the Paymaster contract no longer needs to maintain deposits in the EntryPoint contract to pay for gas, but instead deducts directly from its balance.
• Account Factories: The same contract can still be used, and the account addresses created through the ERC-4337 or native account abstraction process will remain consistent.
• Bundlers: Bundlers in native account abstraction still need to maintain a relationship with block builders to include bundled transactions. Bundlers have privileged API access to block builders, meaning they can communicate directly with block builders and negotiate related matters before packing transactions, including handling nonce collisions (when a user sends a UserOperation with the same nonce to two bundlers in EIP-4337, one of the transactions fails).

Community Discussion on RIP-7560

The community's discussion of RIP-7560 shows diverse viewpoints. John Rising, co-founder of Stackup, believes that RIP-7560 addressing some issues in ERC-4337 could be a good thing. He points out that some key issues with the current implementation of ERC-4337 have led to most activities being concentrated in three cloud service providers or companies after the implementation of EIP-4337. This means that the infrastructure for account abstraction is too centralized relative to the entire ecosystem, and the retention rate of accounts is very low, and the profitability of bundlers running EIP-4337 is also very limited.

Jarrod Watts, an engineer at Polygon, also mentioned that he has not seen major progress in the implementation of account abstraction methods like EIP-4337 by mainstream wallets such as Metamask. This may indicate that the adoption of new features at the application layer has not reached the desired level. Therefore, the proposal of RIP-7560 is a breakthrough.

Peter Pan, co-founder of Particle Network, is very optimistic about this proposal, believing that it maintains compatibility with 4337, optimizes gas, and solves the problem of bundler privacy, which is very important for the adoption of account abstraction.

Foobar, founder of Delegate, believes that 4337 has added too much overhead and is fundamentally impossible to be widely adopted. This proposal, 7560, is developing towards formally solidifying account abstraction at the protocol level. Therefore, the best approach is to directly remove these redundant parts rather than trying to maintain "backward compatibility" with 4337, especially considering that 4337 has not existed for a long time.

Despite differing opinions, RIP-7560 also provides a new reference method for standardizing account abstraction. With in-depth discussions in the Ethereum community, the development of the account abstraction framework will continue to advance. We believe that account abstraction will eventually be widely adopted, regardless of the approach.

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