Smart Contract Wallets Need a Catalyst – Is Gamification the Answer?
In 2023, Vitalik wrote a blog post in which he forecasted that Ethereum would need to undergo three major transitions in order to progress to the next stage of maturity. The first was the transition to rollups, where the majority of transactions move off the main Ethereum chain in favor of a Layer 2 scaling solution. Another was privacy, with the idea that transactions, accounts, and identities are protected on-chain. The final was wallet security, with the transition to smart contract wallets to achieve what’s known as account abstraction.
It’s fair to say that the first two are well underway, with Layer 2s now accounting for more transacted value than the Ethereum main chain, and privacy solutions such as on-chain fully homomorphic encryption (FHE) become more realistic. However, the transition to account abstraction is taking a lot longer. What’s the deal with smart contract wallets, and can projects like Ambire, which is gamifying the transition, help speed up the shift?
What are smart contract accounts?
Smart contract accounts are accounts controlled by smart contracts rather than private keys. They represent an advancement on established wallets such as MetaMask or Ledger (known as Externally Owned Accounts or EOAs) for many reasons. Rather than relying on the user to intervene with their private key each time a transaction is made, a smart contract account can be programmed to certain tasks automatically, allowing for more flexibility and functionality in how the wallet is used.
Smart account users can also batch transactions, bundling multiple on-chain activities into a single transaction, enabling lower fees. Fees can also be paid in any ERC-20 tokens, meaning the user doesn’t always need to maintain a minimum ETH balance to be able to transact.
Furthermore, smart wallets offer better security. EOAs have a single point of weakness in the form of the private key. If it’s lost or stolen, the user no longer has access to their crypto. However, the programmability of smart contract accounts allows for security and recovery protocols to be put in place. For instance, multi-sig arrangements mean users can co-manage accounts with a trusted third party, and time locks can selectively delay the ability to send transactions.
Smart accounts also enable easier onboarding, reducing friction for users accustomed to the Web2 journey. However, the adoption of smart accounts is still relatively low, which could be explained by several factors. Firstly, existing wallet users are reluctant to transfer their existing wallets, and secondly, new wallet users are still most likely to come across EOA wallets in the first instance, missing the opportunity to overcome the friction of the past.
A catalyst for adoption?
Ambire is now taking aim at both groups with the introduction of Ambire Legends, an on-chain adventure game designed to promote the usage and adoption of the Ambire Wallet. The gamified interface is designed to make it easy and appealing to use the wallet, while Ambire is also the first hybrid wallet that supports both EOA and smart accounts, meaning that existing users of wallets such as MetaMask or hardware solutions such as Ledger or Trezor, can easily onboard without needing to transfer their existing assets between wallets.
The game is an on-chain adventure with quests, allowing users to rack up experience points (XP), which will translate into participation tiers for Ambire’s upcoming WALLET token airdrop. The project’s recent governance vote allocated 195 million $WALLET tokens towards incentives for the launch of its wallet browser extension, of which the Ambire Legends campaign is a part. In the game, users are represented by their unique soul-bound NFT character, which they mint at registration to enable them to start playing and accrue XP. As the XP balance increases, their Legends character evolves to reflect the development.
Along with free participation in daily games to win XP, a notable feature is that all users participating in Legends can also earn XP for any on-chain activity on the five chains Ambire supports. This means transactions on Ethereum, Base, Optimism, Arbitrum, and Scroll outside the Legends app can all earn XP rewards. Therefore, there are significant incentives to link existing EOA accounts to Ambire and participate in Legends to earn the rewards.
Account abstraction is viewed by many in the blockchain community, and indeed, Vitalik Buterin himself, as key to the mass adoption of on-chain technologies, given the advantages over the status quo. With the right catalyst to promote take-up, 2025 could be the year that wallet security and UX finally get a long-awaited and much-needed overhaul.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
More articles
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
