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Account Abstraction on Starknet

Karolina

16 Nov 2023
Account Abstraction on Starknet

Innovations that enhance user experience and broaden the scope of technological capabilities are always in the spotlight. One such groundbreaking development is the implementation of "Account Abstraction" on Starknet. This concept, although technical, holds immense significance for both everyday users and developers within the blockchain ecosystem. In this article, we delve into the intricacies of Account Abstraction on Starknet, exploring its transformative potential and how it's reshaping interactions in the blockchain world. Our goal is to demystify this complex topic, providing you with a clear understanding of its implications and benefits.

Table of Contents

Understanding Starknet

Starknet Overview

Starknet, developed by StarkWare, represents a cutting-edge layer 2 scaling solution for Ethereum. Its primary aim is to enhance the scalability and privacy of Ethereum transactions by using STARK technology (Scalable Transparent ARguments of Knowledge), a zero-knowledge cryptographic proof. This technology allows for massive throughput increases while ensuring data privacy and security. Since its inception, Starknet has rapidly gained attention for its potential to address some of the key challenges faced by blockchain networks, such as high gas fees and slow transaction speeds.

MUST READ: What is Account Abstraction

Key features

  • High Scalability. By offloading computation and storage from the Ethereum main chain, Starknet significantly reduces congestion and fees.
  • Increased Privacy. STARK technology ensures transaction privacy, a critical feature for many users and applications in the blockchain space.
  • Enhanced Security. The framework offers robust security features, leveraging the inherent security properties of Ethereum.

Demystifying Account Abstraction

The Concept of Account Abstraction

Account Abstraction is a revolutionary concept in the blockchain world, initially proposed for Ethereum and now being implemented in platforms like Starknet. At its core, account abstraction blurs the traditional lines between contract accounts and externally owned accounts (EOAs). In typical blockchain models, these two account types have distinct roles and capabilities. Externally owned accounts are controlled by private keys and are used for basic transactions, while contract accounts are governed by their code and can execute more complex operations.

The abstraction of these accounts means treating all accounts as smart contracts, simplifying the user experience, and expanding functionality. This unified approach allows for more complex and automated transactions, akin to traditional banking services, but within the blockchain's decentralized framework. This shift not only streamlines operations but also opens up new avenues for smart contract development and deployment, making blockchain technology more accessible and versatile.

Benefits of Account Abstraction

The implementation of account abstraction brings several key benefits to the blockchain ecosystem:

  • Simplified User Experience. Users can interact with the blockchain with greater ease and flexibility. For instance, multi-signature wallets, which previously required complex smart contract interactions, can become more straightforward and user-friendly.
  • Enhanced Security. By allowing users to set rules for transaction execution in their accounts (such as limits on withdrawal amounts or the need for multiple signatures), the risk of theft and unauthorized access is significantly reduced.
  • Increased Flexibility for Developers. Developers gain more control over how transactions are processed and validated. This facilitates the creation of more sophisticated DApps and services on the blockchain.
  • Interoperability. With a unified account model, the compatibility between different types of transactions and interactions across the blockchain is improved, leading to a more seamless experience.

Account Abstraction in Starknet

MUST READ: Native Account Abstraction: Opening Blockchain to New Possibilities

Implementing Account Abstraction on Starknet

Starknet's integration of Account Abstraction represents a significant leap forward in the blockchain domain. Unlike traditional blockchain networks that distinguish between user accounts and smart contract accounts, Starknet treats all accounts as smart contracts. This approach not only streamlines the user experience but also enhances the network's flexibility and functionality.

Technicals

The technical implementation of account abstraction in Starknet involves several key aspects:

  • Unified Account Model. In Starknet, all accounts, whether they belong to individual users or are part of a decentralized application (dApp), are treated as smart contracts. This uniformity simplifies interactions and transactions on the network.
  • Customizable Transaction Logic. Users and developers can define custom rules and logic for processing transactions within their accounts. This could range from simple validations to complex, multi-step processes.
  • Enhanced Security Features. Starknet's account model allows for built-in security features, such as multi-signature verification and recovery options, directly within the account's smart contract.
  • Ethereum Compatibility. Despite these advancements, Starknet maintains compatibility with Ethereum, allowing users to leverage the benefits of Account Abstraction while staying connected to the broader Ethereum ecosystem.

Practical Applications and Use Cases

The implementation of account abstraction on Starknet opens up a plethora of practical applications and use cases, some of which include:

  • Simplified Wallet Interfaces. Wallets on Starknet can become more user-friendly, with built-in security checks and automated transaction processes, making them more accessible to the average user.
  • Advanced Financial Instruments. The flexibility in transaction processing allows for the creation of sophisticated financial tools and services, such as automated escrow services, complex multi-party payment schemes, and advanced trading strategies.
  • Enhanced dApp Development. Developers can create dApps with more complex logic and user interactions, paving the way for applications that were previously difficult or impossible to implement on traditional blockchain platforms.
  • Innovative Governance Models. Starknet’s account model facilitates the development of decentralized autonomous organizations (DAOs) with intricate governance mechanisms, enabling more democratic and efficient decision-making processes.

Account abstraction on Starknet, therefore, is not just a technical enhancement; it's a paradigm shift that expands the boundaries of what's possible in the blockchain space. By simplifying user interactions and providing developers with more powerful tools, Starknet is setting a new standard for blockchain functionality and user experience.

The Future of Account Abstraction on Starknet

Upcoming Developments and Updates

The journey of account abstraction on Starknet is ongoing, with continuous improvements and updates being planned and implemented. These future developments are expected to further refine the technology, making it more robust, user-friendly, and versatile. 

The innovative approach of Starknet in implementing account abstraction is likely to have a significant impact on the broader blockchain landscape. This impact can manifest in several ways:

  • Setting a New Standard. As more users and developers experience the benefits of account abstraction on Starknet, it could set a new standard for user experience and functionality in blockchain platforms, influencing future blockchain developments.
  • Inspiring Innovation. The success of Starknet could inspire other blockchain platforms to adopt similar models, leading to a wave of innovation in the blockchain space.
  • Expanding Blockchain Adoption. By simplifying the user experience and enhancing the capabilities of blockchain applications, Starknet's approach to account abstraction could play a key role in driving wider adoption of blockchain technology across various industries.

Conclusion

The exploration of Account Abstraction on Starknet reveals a significant advancement in the blockchain realm, showcasing a perfect blend of innovation, user-centric design, and technical prowess. Starknet's implementation of this concept signifies a pivotal shift in how blockchain technology can be approached and utilized.

Tagi

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Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Tagi

Nextrope Partners with Hacken to Enhance Blockchain Security

Miłosz

21 Nov 2024
Nextrope Partners with Hacken to Enhance Blockchain Security
Location: Gdynia, Poland
Date: November 12, 2024

Nextrope announces a strategic partnership with Hacken, a renowned blockchain security auditor. It marks a significant step in delivering reliable decentralized solutions. After several successful collaborations resulting in flawless smart contract audits, the alliance solidifies the synergy between Nextrope's innovative blockchain development and Hacken's top-tier security auditing services. Together, we aim to set new benchmarks, ensuring that security is an integral part of blockchain technology.

Strengthening Blockchain Security

The partnership aims to fortify the security protocols within blockchain ecosystems. By integrating Hacken's comprehensive security audits with Nextrope's cutting-edge blockchain solutions, we are poised to offer unparalleled security features in our projects.

"Blockchain security should never be an afterthought"

"Our partnership with Hacken underscores our dedication to embedding security at the core of our blockchain solutions. Together, we're building a safer future for the industry."

said Mateusz Mach, CEO of Nextrope

About Nextrope

Nextrope is a forward-thinking blockchain development house specializing in creating innovative solutions for businesses worldwide. With a team of experienced developers and blockchain experts, Nextrope delivers high-quality, scalable, and secure blockchain applications tailored to meet the unique needs of each client.

About Hacken

Hacken is a leading blockchain security auditor known for its rigorous smart contract audits and security assessments. With a mission to make the industry safer, Hacken provides complex security services that help companies identify and mitigate vulnerabilities in their applications.

Looking Ahead

As a joint mission, both Nextrope and Hacken are committed to continuous innovation. We look forward to the exciting opportunities this partnership will bring and are eager to implement a more secure blockchain environment for all.

For more information, please contact:

Nextrope

Hacken

Join us on our journey to deliver top-notch blockchain tech and a safer future for the industry!

Tagi