What is Chain Abstraction? A Way to Simplify Blockchain
Chain abstraction is an emerging encrypted narrative Because it simplifies on-chain interactions, moving towards mass blockchain adoption.
For those new to cryptocurrencies, interacting with blockchain can feel complicated and overwhelming. No chain abstraction, Users must manually manage their wallets, select the correct blockchain, pay for gas, and more. The complexity involved can be intimidating to beginners, which is why Chain Abstraction was developed to simplify interactions and lower the barrier to entry for web3.
This guide will show you what the chain abstraction is, why it’s important, and the benefits it provides new crypto users. Let’s dive in!
1. The problem with mass adoption
Web3 is fragmented beyond practical usability. Source: Particle Network
One of the main reasons cryptocurrencies can be intimidating for new users is the fragmented user experience. User accounts and liquidity continue to grow as new chains, layers, and rollups are launched and grown. This creates endless problems and a clunky user experience for users.
Here are some of the main reasons
- Complex onboarding process: Many new users find blockchain interfaces too complex and difficult to navigate.
- User experience fragmentation: User experience friction remains a thorny issue for crypto users with hundreds of wallets, blockchains, and applications.
- Low usage: Decentralized application (dApp) developers often struggle to grow their user base due to complex blockchain interactions and lack of supporting infrastructure.
- Capital inefficiency: Fragmentation has also led to inefficiencies in Web3 incentives and operations, some of which have resulted in billions of dollars in waste.
The chain abstraction addresses this challenge head-on and brings Web3 closer to the Web2 experience.
2. What is chain abstraction?
Chain abstraction aims to abstract the technical details of blockchain transactions, allowing you to use decentralized applications (dApps) without having to understand the complex workings of different networks.
By hiding the technical details of each blockchain, Chain Abstraction allows users and developers to easily interact with dApps.
3. How does the chain abstraction work?
In a multi-chain environment, the permission layer, solver layer, and settlement layer work together to simplify and protect the user experience.
CAKE framework for chain abstraction.
Permission level
When you connect your wallet to a dApp, you can set intentionsuch as sending tokens to a wallet address or depositing funds into a smart contract Ethereum Layer 2. The permissions layer doesn’t need to worry about how it works on each chain, just know what you have and handle permissions to make it happen.
solver layer
Next, the solver layer works on calculating the optimal route for the transaction. It finds the ideal balance of fees, speed, and success rates, and even takes into account issues that may arise with cross-chain operations. This way you get the best value without having to manually adjust.
sedimentation layer
Once you approve using your private key, the settlement layer completes your transaction by transferring the assets to the target chain and finalizing your intent. Some protocols even offer their own liquidity to simplify this step, so you don’t have to manually bridge assets.
Together, these layers remove the hassle of multi-chain activities, allowing you to focus on what you want to achieve rather than the steps to get there.
4. Main advantages of chain abstraction
Chain abstraction offers many advantages to new users, whether in terms of cross-chain activities, token transfers or exploring new applications.
- Seamless experience: The chain abstraction simplifies interaction with ecosystem dApps. This makes it easier for new users to participate in activities such as liquidity mining or staking without being bogged down by complicated procedures.
- Cost savings: Chain Abstraction can help users optimize Gas costs by automatically selecting the chain with the lowest transaction fees, or supporting any token for Gas payments. This is especially useful when users trade volatile assets or transfer across chains.
- Interoperability: Chain Abstraction allows users to access various networks and dApps from a unified interface. You can interact with different people easily DeFi Platform or NFT marketplace without the hassle of managing multiple wallets.
- Better development: For developers, chain abstraction means creating applications that can work across chains without restrictions. They can leverage the best features of any blockchain, reach more users and enhance the ecosystem.
These benefits effectively enable users to participate more in the decentralized ecosystem while enhancing their overall experience in Web3.
5. Practical chain abstraction: some examples
There are some famous projects working on chain abstraction.
Chain abstract market map. Source: Summary
1. Particle Network
Particle Networks are one of the major players in the field of chain abstraction. The network’s chain abstraction is built on the Cosmos SDK and covers both EVM and non-EVM networks, meaning users of almost any chain can interact seamlessly. Their core features make this interoperability possible:
- Universal Account: Single account and cross-chain balance so users don’t have to deal with multiple wallets at the same time.
- Universal Liquidity: Cross-chain atomic swaps can easily interact with multiple chains without holding assets on each chain.
- Universal Gas: Users can use any token to pay gas fees, further simplifying cross-chain transactions.
2.NEAR protocol
The NEAR protocol uses a unique multi-chain signature method that allows you to use a single NEAR account to conduct transactions between NEAR, Ethereum, Avalanche, BNB Smart Chain and Bitcoin
Imagine all these chains using one account – no more switching wallets or managing different accounts. NEAR’s cross-contract calls allow smart contracts on one chain to trigger operations on another chain. Chain signatures are verified across chains, allowing for seamless interaction without the need to switch back and forth.
Embed tweet: https://x.com/PinkBrains_io/status/1841040660067205381
3. Socket
Another builder in Chain Abstraction is Socket. It can be viewed as a chain abstraction marketplace where various players are incentivized to provide the most seamless and cost-effective experience to developers and users.
Magic Account is one of the Socket-based features that provides an understanding of the chain abstraction for the first time. Specifically, Magic Account consolidates your balances across chains into one account, so you can use your assets on any app, anywhere.
Embed tweet: https://x.com/litocoen/status/1833581746946036028
last words
While most projects in this space are still in their early stages, Chain Abstraction will change the way people interact with blockchain. By simplifying complex on-chain execution, optimizing costs, and improving user experience, it lowers the barriers to cryptocurrency adoption and makes it easier for beginners to enter the blockchain space.
