Alchemy reports over 1 million Smart Accounts deployed
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In the fourth quarter of 2023, Alchemy saw an unexpected surge in the number of ERC-4337 smart contracts, with more than 960,000 accounts created.
According to Alchemy’s report, this explosion of interest highlights the enthusiasm of app developers to solve user experience challenges.
Will Hennessy, Head of Account Abstraction at Alchemy, expressed his surpriseattributes its rapid adoption to the Ethereum Foundation’s deployment and developers’ eagerness to solve user experience challenges.
“The Ethereum Foundation just deployed the ERC-4337 contract in March 2023, so early adoption is faster than expected,” he said via his personal X account. “This shows how eager app developers are to solve (user experience) issues like gas sponsorship.”
Unlike traditional wallet accounts, smart accounts let users create “user actions” rather than just transactions. Hennessy said the innovation “shows how eager app developers are to solve (user experience) problems like gas sponsorship.”
This feature increases efficiency, especially in trading and gaming. ERC-4337 introduces sponsored transactions that allow entities to pay gas fees for users, which Hennessy emphasized is “a departure from the current approach, where fees are only paid in the network’s native currency.”
this standard It also improves security and convenience with multi-signature transactions and simplified account recovery, marking an important step towards making web3 more user-friendly. Hennessy emphasized that account abstraction’s role in facilitating easy adoption of web3 applications will continue to attract a diverse user base.
“Account abstraction makes it easy for anyone to start using web3 applications,” he said. “By lowering the barrier to entry through social login and gas sponsorship, apps can attract more users, including those with lower intent.”
“Bundler” user operations grew significantly by 194% in the fourth quarter, mainly driven by applications such as Grindery, FanTV and Cyberconnect.
Hennessey added, “Current retention rates are largely driven by how useful the app is. They are developing new features to continue to engage users.”
The introduction of Paymasters, which allows gas fees to be paid in ERC-20 tokens, has proven popular and is expected to cover $1.16 million in gas fees.
Hennessey emphasized that “flexibility in transaction fee payments remains a common demand among users.”
