All About Abstraction: ERC-4337 Smart Wallets’ Growth Dilemma, Etherspot & RealT’s Real Estate Tokenization, Chain Abstraction Debates, and AI-Powered Instant DeFi Transactions
March 26th, 2025

We are welcoming you to our weekly digest! Here, we discuss the latest trends and advancements in account abstraction, chain abstraction and everything related, as well as bring some insights from Etherspot’s kitchen.

The latest news we’ll cover:

  • Etherspot and RealT: Unlocking the Future of Real Estate Tokenization

  • ERC-4337 Smart Wallets Drive Growth but Struggle with User Retention

  • Chain Abstraction Discussion with Infinex, Particle, and Jumper

  • AI Agents Enable Instant DeFi Transactions Using Chain Abstraction

Please fasten your belts!

Etherspot and RealT: Unlocking the Future of Real Estate Tokenization

RealT, a pioneer in blockchain-based real estate investing, is integrating Etherspot’s cutting-edge account abstraction infrastructure to streamline real estate tokenization.

The partnership is designed to simplify the blockchain experience for users investing in tokenized real-world assets (RWAs) by removing many traditional barriers, such as gas fees and complex transaction processes.

The integration leverages several key technological advancements. Smart accounts will manage transactions with enhanced security measures like multi-signature authentication, delivering a more robust yet user-friendly solution for property transactions. Etherspot’s Web3 Social Logins will offer traditional sign-in options such as Google and Discord, lowering the entry threshold for users unfamiliar with blockchain wallets. Furthermore, the Skandha ERC-4337 Bundler will streamline multiple actions into a single blockchain confirmation, while the Arka Paymaster will sponsor gas fees to eliminate the need for users to hold additional blockchain-native tokens.

The improvements are expected to enhance the efficiency and security of decentralized real estate transactions, broadening access to innovative investment strategies.

ERC-4337 Smart Wallets Drive Growth but Struggle with User Retention

Deep Tide TechFlow has published a comprehensive article about the impact of ERC-4337 smart wallets on on-chain activity and user behavior through gas fee sponsorship.

The analysis reveals that while gasless transactions facilitated by mechanisms such as the Paymaster drive significant user registrations and high transaction volumes, they do not necessarily secure long-term user engagement.

The report highlights that during a 30-day period, 89 projects across nine blockchains completed over 2 million gasless transactions, saving up to $117,000 in gas fees, and includes instances where NFT, gaming, and token-related activities are boosted substantially by these mechanisms.

However, a deeper look shows that many users, particularly in NFT projects like Piggybox, perform only one transaction, suggesting a short-lived interest mostly driven by one-time minting or claiming events. In contrast, products integrating more engaging dynamics, such as active gaming loops or repeated token trading, indicate paths for improved user retention, albeit with the caveat of potential bot traffic and short-term spikes that may distort true user demand.

Further, the report underlines that cost differences across chains encourage specialized use cases whereby blockchains like Base and Polygon are preferred for low-cost, high-volume applications, while higher-cost chains like Ethereum are less suited for economically demanding dApps.

Overall, the shift towards gas fee abstraction and smart wallet utilization emphasizes the need for dApps to offer compelling continued value beyond initial free transactions for sustained growth.

Chain Abstraction Discussion with Infinex, Particle, and Jumper

LI.FI has released a YouTube discussion delving into the topic of chain abstraction. The panel brought together Egor from Infinex, Tabasco from Particle, and Marko from Jumper — three teams each approaching multi-chain interoperability from a different angle, yet all seeking to enhance the user experience on Web3.

The discussion began with attempts to define chain abstraction, revealing that no single consensus exists on what the term actually means. The speakers debated whether true chain abstraction is solely about hiding blockchain networks from the user or if it should also encompass bridging processes, gas abstraction, and elements of account abstraction. Despite differing technical solutions and project goals, all three agreed that crypto’s existing interfaces remain too cumbersome for newcomers and advanced users.

While each guest shared contrasting views — from building an “everything app” to providing automated bridging flows — they concurred that greater cooperation among teams and infrastructure providers is needed to remove friction for end users.

The panel concluded that making complex, multi-chain infrastructures feel “invisible” is essential for mainstream adoption. As decentralized protocols continue to expand across numerous layer-2 networks and app chains, each project aims to simplify bridging, swapping, and liquidity management without requiring users to be aware of underlying mechanics.

By refining these approaches, they believe developers can move closer to creating a Web2-like experience where people can focus on their intended actions rather than navigating blockchain intricacies.

AI Agents Enable Instant DeFi Transactions Using Chain Abstraction

SOCKET, in collaboration with Enclave Money, has announced its new AI agent technology, which enables automated onchain actions with zero latency.

The initiative leverages SOCKET’s chain abstraction protocol to facilitate seamless DeFi transactions across multiple blockchain networks without the need for bridging, aiming to streamline asset transfers and trading operations.

The announcement outlines how the AI agents, built with Enclave’s support, interact via platforms like Telegram to help users transfer assets, track trending tokens, and execute buy or sell orders based on market or limit conditions.

This solution addresses time-sensitive operations in decentralized finance by ensuring that transactions occur instantly, which is particularly important for managing volatility inherent in the crypto market.

The innovation is significant as it combines DeFi with AI capabilities to enhance transaction efficiency and reliability.


🐞 Create a next-level Web3 user experience! Etherspot’s Modular ERC-7579 SDK empowers developers with unparalleled customization for smart accounts.

👉 Learn more


Start exploring Account Abstraction with Etherspot!

  • Learn more about account abstraction here.

  • Head to our docs and read all about Etherspot Prime.

  • Skandha — developer-friendly Typescript ERC4337 Bundler.

  • Arka — an open-source Paymaster Service for gasless & sponsored transactions.

  • Explore our TransactionKit, a React library for fast & simple Web3 development.

  • Follow us on X and join our Discord.

❓Is your dApp ready for Account Abstraction? Check it out here: https://eip1271.io/

➡️ Read the previous AA digest here.

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