The Development and Application of Account Abstraction Technology: Biconomy's Innovative Practices

Account abstraction is an important concept in blockchain technology, aimed at enhancing the flexibility and functionality of smart contract accounts. It blurs the lines between externally owned accounts and contract accounts, giving contract accounts more capabilities while enabling externally owned accounts to possess the flexibility of smart contracts. This technology significantly enhances the user experience, security, and innovation capabilities of Web3.

Vitalik Buterin first proposed the concept of account abstraction in 2016, suggesting to enhance account functionality and flexibility through smart contracts. In 2022, EIP-4337 proposed a Layer 2-based account abstraction standard, which was successfully deployed and implemented in 2023. With the continuous development of technology, more and more blockchain platforms and applications are adopting this technology.

In 2024, as the cryptocurrency market welcomes another bull market, account abstraction and smart wallets are expected to drive the widespread adoption of Web3 due to their simplicity and convenience. In this context, Biconomy, as an account abstraction infrastructure provider, has received significant attention.

Biconomy is a development platform that provides an SDK and on-chain scaling solutions for ERC 4337 account abstraction. It offers complete account abstraction solutions for Web3 application developers and has created over 1.25 million wallets across multiple chains, providing around 50,000 transaction services daily for more than 70 applications.

Biconomy's specific implementation in account abstraction includes:

1. Gas-free transactions: Achieved through Relay Protocol and Paymaster, users can perform on-chain operations without holding ETH.

2. Multi-signature and multiple authentication methods: Supports various identity verification and transaction signing methods including social login, hardware wallets, and biometrics.

3. Smart Contract Wallet: Allows users to customize transaction logic and security rules, enhancing account security and flexibility.

4. Layer 2 Solutions Integration: Integrating with multiple Layer 2 solutions such as Polygon and Optimism to enhance transaction speed and reduce costs.

5. Developer-friendly SDK: Simplifies the integration process of account abstraction features, making it easy for developers to quickly deploy applications with AA accounts.

Biconomy has also partnered with traditional institutions, such as collaborating with JPMorgan to build a Gas payment solution for easy payments using any ERC20 token. In the gaming sector, projects like Anichess and Rage Trade are utilizing Biconomy to simplify user operation processes. The SWIFT feature of Trust Wallet was also launched in collaboration with Biconomy.

In terms of financing, Biconomy has raised over $22 million, with investors including well-known institutions such as Jump Capital, Consensys Ventures, and Binance. Its ecosystem token $BICO has a total supply of 1 billion, with a current circulation of approximately 780 million.

Biconomy recent updates include:

1. Collaborate with Base chain to conduct the ONCHAIN SUMMER event, providing gas fee subsidies for ecological projects.
2. Promote the implementation of ERC-7559 and ERC-7579 to simplify the modular smart account standards.
3. Explore the permission management of smart wallets for Web3 AI agent applications.
4. Release detailed documentation for Paymaster to facilitate developer integration.

With the upcoming launch of Ethereum spot ETFs and the booming development of Layer 2 ecosystems, smart wallets and account abstraction technologies will play an important role in the future development of blockchain. Biconomy, through its powerful infrastructure tools and modular design, is providing users with a more convenient and secure Web3 experience, promoting the popularization and application of blockchain technology.