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:
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Chainlink Launches Payment Abstraction System
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Ethereum Pectra Upgrade Explained by Etherspot
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Overtime Integrates Full Account Abstraction UX
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Deeply Intents #12: Chain Abstraction Logic with OneBalance Co-Founder
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Paradigm’s Interactive Demos for EIP-7702
Please fasten your belts!
Chainlink Launches Payment Abstraction System
Chainlink has announced the launch of its Payment Abstraction system, a cross-chain payment solution designed to reduce payment friction and simplify fee conversion for Chainlink services.
The system enables users to pay with a variety of tokens including ETH, WETH, and eventually additional blockchain-native gas tokens and stablecoins, which are automatically converted into LINK via Chainlink Automation, Price Feeds, CCIP, and a decentralized exchange.
The announcement details a four-step process in which user fees are collected on various blockchains, consolidated on Ethereum to optimize costs and liquidity, converted to LINK through an automated smart contract system using Uniswap V3, and ultimately sent to a Reserves contract for withdrawal by Chainlink Network service providers.
Chainlink SVR serves as the first use case where fees generated from Aave’s integration are split between the Aave community and the Chainlink ecosystem, marking an important effort to support economic sustainability within the network.
The innovative approach also aims to streamline rewards for node operators by consolidating multi-chain rewards to a single blockchain, thereby saving time and costs.
Chainlink’s Payment Abstraction represents a significant step toward the consolidation and sustainability of Oracle network rewards, with plans to further integrate Chainlink Staking and additional services over time.
Ethereum Pectra Upgrade Explained by Etherspot
Etherspot has released an educational article explaining what the Pectra upgrade means for users and developers. The upcoming Ethereum Pectra upgrade represents a critical step within Ethereum’s roadmap, succeeding previous updates and setting the stage for a more efficient and adaptable ecosystem.
The upgrade, successfully deployed on the Sepolia and Hoodi testnets earlier this month, combines elements of the Prague and Electra updates to introduce several key improvements.
Among these, EIP-7702 enables account abstraction, allowing externally owned accounts (EOAs) to adopt many capabilities typical of smart contracts. Furthermore, validator staking limits have been significantly increased via EIP-7251, although this change has raised concerns regarding potential centralization. Additional enhancements include upgrades to Layer-2 scalability through EIPs 7691 and 7623, along with streamlined smart contract deployment and consensus improvements through EIP-7549.
The comprehensive update is expected to lower transaction fees, reduce confirmation times, and promote faster deployment and improved performance of decentralized applications.
These advancements are designed to benefit both developers and users by making interactions within the Ethereum network faster and more cost-effective. Overall, the Pectra upgrade marks a significant evolution in Ethereum’s efforts to balance increased network performance with a sustainable and secure blockchain environment.
Overtime Integrates Full Account Abstraction UX
Overtime has announced several major updates, including the integration of its parent protocol Thales under the unified Overtime brand and the launch of its new native token, OVER.
This consolidation also introduces a new primary domain and a full account abstraction experience aimed at enhancing user accessibility and simplifying onchain interactions.
The upgrade brings a range of features designed to improve the operational experience on a fully decentralized sportsbook platform. Notably, Overtime accounts leverage Particle Network for wallet creation via social logins and Biconomy’s SDK for smart account functionalities.
These changes remove common blockchain barriers, allowing users to deposit collateral and access features such as parlays, futures, and live betting without requiring ETH for gas fees. The update is expected to increase participation and promote transparent, accessible, and secure betting operations.
Deeply Intents #12: Chain Abstraction Logic with OneBalance Co-Founder
In Episode 12 of the Deeply Intents podcast, OneBalance co-founder Ankit Chiplunkar shares his journey from aerospace engineering to blockchain, discussing everything from MEV and order flow auctions to his resource lock research and the “CAKE” framework for chain abstraction. He emphasizes clear, logic-driven research and user-first thinking in crypto infrastructure design.
Chiplunkar dives into OneBalance’s mission: enabling users to interact across chains without dealing with multiple wallets or assets manually. Central to this is the “resource lock” primitive, which allows users to make credible commitments across chains without waiting for transaction finality, improving UX and enabling multi-chain intents.
He also explains the logic behind chain abstraction as a user-centric movement, moving from “chains have users” to “users have chains.” Applications, according to Chiplunkar, will increasingly rely on chain-agnostic toolkits that let them tap into liquidity, execution, or specific assets on any chain — while hiding complexity from the user.
The episode ends with a preview of OneBalance’s upcoming Bitcoin integration and reflections on how TEEs and user intent-based design can improve key management and bring crypto to the masses.
Paradigm’s Interactive Demos for EIP-7702
Paradigm released a series of interactive demos showcasing the potential of EIP-7702, Ethereum’s upcoming transaction type included in the Pectra hard fork. These experiments demonstrate use cases like WebAuthn-enabled accounts, sponsored transactions, and batch contract calls.
The demos and the newly introduced “Porto” smart account — highlight seamless onboarding, flexible signing, and powerful user customization.
Links:
EXP-0001: Account Delegation with EIP-7702
EXP-0002: App Sessions
EXP-0003: Application Subscriptions
Introducing Porto: Next-generation account for unstoppable applications
🐞 Create a next-level Web3 user experience! Etherspot’s Modular ERC-7579 SDK empowers developers with unparalleled customization for smart accounts.
Start exploring Account Abstraction with Etherspot!
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Learn more about account abstraction here.
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Head to our docs and read all about Etherspot Prime.
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Skandha — developer-friendly Typescript ERC4337 Bundler.
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Arka — an open-source Paymaster Service for gasless & sponsored transactions.
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Explore our TransactionKit, a React library for fast & simple Web3 development.
❓Is your dApp ready for Account Abstraction? Check it out here: https://eip1271.io/
➡️ Read the previous AA digest here.
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