Original title: "What are the Ethereum improvement proposals worthy of attention in 2023?" "

Original Source: Baize Research Institute

The Ethereum developer community is constantly pushing the boundaries of innovation to improve decentralized applications ( dApp) user experience.

EIP and ERC are proposals and formal standards, respectively, aimed at improving the functionality of the Ethereum network.

They also actually represent one of the main features of Ethereum: the ability to create and manage custom tokens using various standards.

like alternatives Token ERC-20, and irreplaceable Token Standards such as ERC-721, ERC-1155, etc. have played a vital role in the growth and success of the Ethereum ecosystem, and developers have created many unique and innovative dApps through them.

Ethereum has several other standards that help it become a thriving ecosystem, including ERC-777 (a security upgrade of ERC-20), ERC-3643 (Safety Token standard), etc.

But this is definitely not the end of Ethereum's innovation path.

In 2023, the newest and most exciting standard is ERC-4337, also known as the "smart wallet" standard or account abstraction. It aims to simplify the user experience and thus promises to be a game changer for blockchain adoption by the next billion users.

In addition, there are 3 other proposals that are also making waves in the first half of 2023.

ERC-4337: Open the era of no private key

ERC-4337 aims to upgrade the EOA account used by the user to a "smart account", so that the account can be used as The smart contract runs. This means that each crypto wallet can have customizable authorization logic to suit individual user or application needs.

ERC-4337 is therefore often referred to as the "smart wallet" standard, or also as "account abstraction".

Crypto wallets are the entry point for anyone wanting to interact on the blockchain and one of the main sources of friction preventing mass adoption. Why?

The answer to this question is actually all the advantages of ERC-4337:

- Simplified access: ERC-4337 provides the possibility to use accounts without storing private keys. Private keys can be stored in the smartphone's standard security module.

- Account Recovery: If you lose your phone or private key, you can contact the previously specified user by using the social recovery function (multiple signature) to help you regain access to your account. If you don't have a trusted friend, you can also pay a third-party company that provides the service to help you recover your account if needed.

- Automated Trading: ERC-4337 allows automated trading, including monthly spending limits, AI trading, and adjusting staking positions. These features allow users to conduct transactions more easily.

- Gas-free transactions: ERC-4337 supports gas-free transactions, which allows dApps such as DeFi, chain games, DAO, etc. to sponsor users Gas fees, making transactions easier for users. This feature also allows users to use dApp's Token Pay for Gas, which can greatly reduce the cost of using dApps.

- Bundled Transactions: Every transaction requires a signature. Through account abstraction, transactions can be bundled and multiple transactions sent as one to save time and even gas costs. Similar to a shopping cart, even in the face of 10 markets, one transaction can be packaged.

- Pre-approved transactions: Say you are minting multiple NFTs, or playing a game. With Smart Accounts, you can pre-approve transactions based on custom wallet codes and session keys set in advance.  

There are many other use cases for ERC-4337, but all of them are to make the user experience of dApp as simple as Web2 application. This is why ERC-4337 is often referred to by the Ethereum community as a "game changer for blockchain adoption by the next billion users".

Although its adoption is still in its early stages, the developer community is vigorously developing new products to unlock the incredible potential of Smart Accounts.

ERC-6551: Make NFT a real on-chain identity

The idea behind ERC-6551 is to link NFT (ERC-721) and smart accounts to become Token Tie Account (TBA) - Yes, it is built on top of the ERC-4337 standard.

ERC-6551 aims to make each NFT have a corresponding TBA behind it, enabling NFT to interact with applications, record transaction history and own assets on the chain (Notably, it does not require changes to existing ERC-721).

For example, Xiao Ming obtained an NFT from a project, and then the project decided to conduct Token airdrops to NFT holders, and also released a series of POAP, for holders to collect.

Scenario A - No TBA

When Xiao Ming decides to sell his NFT, the NFT-related Token , POAP will not be transferred to the buyer.

Scenario B - Using TBA

All related to NFT Token Receiving and POAP receiving will be recorded in the NFT itself. When conducting an NFT sale, buyers will also see these records, and all relevant Token , POAP will also be transferred to the buyer. If these are missing, the value of NFT may also be greatly reduced.

The motivation behind ERC-6551 is to empower NFTs as a form of on-chain identity.

Guess the use case of TBA:

- A character in a role-playing game based on time Passes and the actions they take (e.g. nuggets), accumulating assets

- A car in the Metaverse, composed of NFTs as "components"

- A punch-through membership card that grants access to the establishment and records a history of past interactions

< p>- Social media profiles, where users own their content and data

ERC-5507: Token Refundable sales, less scams

ERC-5507, sometimes referred to as ERC-721R, because it is an evolution of the ERC-721 standard for NFTs.

It is intended to be an alternative Token and irreplaceable Token (ERC-20, ERC-721, and ERC-1155) Add refund feature: users have the right to refund their purchases before a preset time has elapsed Token .

The motivation for ERC-5507 is to help prevent Rug Pulls and scams and provide greater protection for buyers by increasing accountability in the crypto industry. By the way, it will also make the Token Compliant with EU regulations - there is a 14-day refund period for items purchased online.

Some key points and benefits of ERC-5507 are:

- Build with various NFT Interoperability of related applications, such as Portfolio Explorer and Marketplace.

- NFT marketplaces can place a sign indicating that NFTs are still refundable and provide a link to a website for refunded NFTs.

- Decentralized Exchange (DEX) can provide Token refund options.

- Better wallet confirmation dialog.

However, there are also challenges and disadvantages in using ERC-5507: increased gas cost, abuse of refund policy, difficult implementation... These are currently being discussed in the Ethereum community Discussion, so not sure if this EIP will pass (currently in review period).

It is worth noting that the emergence of EIP-5507 and ERC-5507 reflects the willingness of the encryption industry to solve compliance and investor protection issues.

EIP-4844: Prepare for Ethereum Sharding

EIP-4844 is an important Ethereum improvement proposal, a step before Ethereum DankSharding Realize the temporary storage and retrieval of off-chain data to meet the data and storage needs of blockchain applications.

This proposal introduces blob-carrying transactions (the required transaction format for sharding) that enable blobs to hold more data without incurring additional cost. A blob is a data type specifically designed for L2 data transfers, blobs are not permanent as the network deletes them after a few weeks.

If successfully activated, EIP-4844 is expected to reduce transaction costs for L2 rollup solutions, including Optimism and Arbitrum, by a factor of 10-100.

In addition to introducing blob-carrying transactions, EIP-4844 will also prepare for sharding, implementing execution layer logic, validation rules, multi-dimensional fee markets, and future sharding Additional system changes required.

EIP-4844 is expected to be implemented in the second half of 2023, but there may be delays.

Summary

These EIPs and ERCs above enable new use cases and enable It is easier for users to interact with dApps - especially for ERC-4337.

2023 could be the year of the developer as the entire crypto industry looks forward to these EIPs and ERCs and hopes to see the fruits of the work in 2024 -- Could this be the start of the next bull market?

In any case, it deserves our close attention.