What Ethereum’s latest deployment means for ETH and its roadmap
- Ethereum’s new protocol aims for another account abstraction
- As new addresses have joined the network, the TVL has also increased
An important part of Ethereum’s future roadmap is Account Abstraction (AA). AA focuses on the UI/UX (User Interface/User Experience) elements of the Ethereum ecosystem. The goal of AA is to enable more user-friendly interactions between wallet developers, application developers and end users. It also aims to produce smart contract wallets natively powered by Ethereum.
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Looking at abstractions
In the last few days, the ERC-4337 contract has been deployed on the Ethereum network. The provision of this contract brought Ethereum’s goal of account abstraction much closer.
The deployment of the contract aims to improve the experience of developers working on Ethereum wallets and infrastructure. Compared to smart contract developers, wallet developers didn’t have ERC-20 standards to work with.
One of the features of the ERC-4337 is the introduction of the EntryPoint contract, which addresses this issue. The EntryPoint contract provides a standard similar to the ERC-20 for wallet developers.
It would also help users switch from EOA (External Owned Accounts) wallets to smart contract wallets. However, moving from EOA to smart contract wallets would cost users more as these wallets are inherently more expensive than EOAs. This could cause some problems for the users in the future.
Source: Messari
The current state of Ethereum
As Ethereum developments continue towards AA, the Ethereum ecosystem will become more user friendly in the long run. It will also result in more addresses being attracted to the Ethereum network.
While Ethereum has yet to meet its AA goals, that hasn’t stopped addresses from increasingly joining the network.
According to Glassnode, the number of addresses with more than 0.01 coins has increased over the past month. In fact, it hit a 7-month high at 23.20 million.
Source: glass node
This wave of new addresses on the Ethereum network also helped the network maintain its dominance in the DeFi sector. According to data from Defi Llama, Ethereum’s dominance on the TVL front remains between 58% and 60%.
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Furthermore, Ethereum has managed to maintain its dominance, although many L2 solutions have seen growth in the sector in recent months.
Source: Defillama
Ergo, it remains to be seen how the landscape of the Ethereum network will change. Especially as it nears the goals on its roadmap.