Account abstraction (AA) refers to using smart contracts to hold an individual’s digital assets when interacting with a blockchain or dApp. For the end user, having an AA crypto wallet provides greater security and flexibility. They no longer need to rely on an externally owned account’s (EOA) private key or seed phrase to access their cryptocurrency and/or NFTs.
Instead, they can set up multi-factor authentication, multi-party approvals, and even social recovery mechanisms to gain access to their digital assets. Portkey is one example of an AA wallet, with a user experience just like the TradFi or other Web3 wallet apps you’re familiar with.
Read on to learn all about what AA wallets are, how they function, and how to set up your Portkey crypto wallet.
More on Account Abstraction and AA Wallets
Web3 and AA wallets lower the barrier for Web2 users making the leap to Web3. 'Traditional' digital asset wallets—commonly known as EOAs—are fairly challenging to use, requiring you to keep your private keys secure at all times. This gets more complex if you wish to further safeguard your assets by storing them in a hardware wallet.
Conversely, an AA wallet is a programmable wallet which is used as an on-chain account. As mentioned above, it’s essentially a smart contract acting as a digital assets wallet. Therefore, this grants AA wallets the potential to be more secure and flexible than EOAs.
Place both of them side by side and you’ll see that an AA wallet like Portkey has four crucial advantages over an EOA.
1. A Seamless User Experience
AA wallets can be created and managed using your social information, whether it’s your email address, phone number, or social media account. There’s no need to memorise or note down any seed phrases or private keys just to recover your assets or port over your Web3 wallet.
2. Better Security
An AA wallet is more user friendly but it doesn’t sacrifice security to achieve that. If you’re sharing your Web3 wallet with someone, you can do so while ensuring they make their asset transfer by a certain time to a preselected list of wallets. AA wallet owners can also nominate wallet guardians to grant them new account credentials should they forget their current set.
3. More Flexible Transaction Fee Payments
With an AA wallet, you can settle transaction fees using non-native tokens. For example, if you’re transacting on the Ethereum blockchain, you can use USDT instead of ETH to pay for the transaction fees. You don’t have to go through the hassle of purchasing more ETH than you need just to make sure you have enough for your transaction to succeed.
4. A Wider Range of Features
AA wallets provide a better foundation for custom features. These include scheduling single transactions for a later date or time, batching several transactions up, and even creating a recurring transaction. For users accustomed to Web2 applications, this level of functionality is a must-have.
Convinced by the capabilities of AA wallets? Enter Portkey.
What Is Portkey?
Portkey is the first AA wallet on Layer-1 AI blockchain aelf to feature a decentralised identity (DID) solution. It introduces the social recovery mechanism mentioned earlier, enabling Web3 wallet accounts to be protected by existing Web2 accounts.
This streamlines users’ transition from Web2 to Web3 and removes the need to memorise or store seed phrases typically used by EOAs.
Portkey addresses the fundamental dilemma of balancing security and usability by eliminating this hurdle. But how exactly does social recovery function?
How Does Portkey’s Social Recovery Mechanism Work?
Social recovery rules can be encoded through the smart contract that AA wallets like Portkey use. The social recovery mechanism involves the concept of a 'wallet guardian'—Web2 accounts such as those of your family and friends—to validate your real-world identity. For example, when you log in, your wallet guardian(s) receive requests to approve the action.
Your login can only be carried out after the action is approved by a specific share of the total number of wallet guardians assigned to your account. The social recovery mechanism leverages your social connections, which are much more intuitive than random seed phrases or private keys. Therefore, it eases the burden on you having to safeguard your account.
The following diagram is an overview of the components involved to realise social recovery for Portkey’s wallet:
What Else Is Needed for Social Recovery on Portkey?
Verifiers, also known as verification methods, are critical for the approval process in Portkey’s social recovery mechanism. It’s a code sent via email, SMS, or to your crypto wallet guardian’s Apple or Google account. You can select a different verifier for each wallet guardian, empowering you to customise how decentralised and secure your Web3 wallet is.
Here are two scenarios where a verifier is used after you create your Portkey AA wallet and select an initial wallet guardian. Think of it as a multi-factor authentication process.
Registration Using Email or Phone Number
The following sequence illustrates the AA wallet registration process using an email address or phone number as the initial wallet guardian.
After choosing the wallet guardian type, you’ll be prompted to select a verifier. A wallet guardian is configured correctly when an email address or phone number is paired successfully with a corresponding verifier.
To complete the setup, the user initiates an initial verification request. This mirrors the familiar steps you take when creating a Web2 account, but they’re executed via the decentralised verifier instead of a centralised server. Upon receiving the request, the verifier will send a code to the email address or phone number you entered earlier.
A subsequent message containing your input for the verification code is sent. The verifier checks this code to ensure it is correct, confirming you can be reached via the associated email address or phone number. Once this verification process is complete, the wallet guardian is considered as valid.
At the same time, the verifier issues cryptographically verifiable proof. Your email address or phone number and the selected verifier will be registered as the initial wallet guardian for your crypto AA wallet. Another detail included is the manager’s information created by the device. It is used for handling regular operations on behalf of the account. In short, it signs transactions.
Registration Using an Apple or Google Account
The following sequence illustrates the AA wallet registration process using an Apple or Google account as the initial wallet guardian.
Once you select the Apple or Google account option, you’ll be sent to the appropriate login page for authentication. Simply log in to your Apple or Google account once the page loads.
After you’ve successfully signed in, an identity token will be issued by Apple or Google. You will then be redirected to the application with the token and prompted to choose a verifier.
The identity token is then sent to the selected verifier to confirm its validity. Once verification is successful, the verifier will issue cryptographically verifiable proof. Your Apple or Google account ID and the selected verifier will then be registered as the guardian for your AA crypto wallet.
How Can You Add More Wallet Guardians?
After completing the registration process, your AA wallet is protected by a designated guardian. For enhanced security, you have the option to add additional wallet guardians. Akin to your initial registration, the new wallet guardian must be accompanied by valid verification proof. The approval process follows the same procedures outlined above.
However, do note that all additional wallet guardians will require approval from you and your existing guardian(s).
Social Recovery for Logging In
On Portkey, you can implement social recovery for logins. This means that you can log into your account via your guardians. The following diagrams show how the flow works. Every account needs a login guardian as the identifier of your Portkey crypto wallet.
You need to provide the information of this login guardian so that your account information can be retrieved. One piece of important information required is the list of guardians. The user needs approval from a certain number of guardians to log into your Portkey account.
Like other operations mentioned above, this approval process follows the same verification procedures. Once the required approvals are obtained, a transaction can be executed in the AA contract on the aelf blockchain. This operation will register a newly created manager (a random private key securely stored on the device) in the AA account.
Portkey’s Social Recovery Rule, Explained
Although you’re able to customise your social recovery rules, there’s a default one provided by Portkey you must follow. According to this rule, if the number of guardians added to the account is three or less, all guardians must approve the login process. If four or more guardians are configured for the account, 3/5 of the total, plus one, are needed.
For example, if four guardians are added, three are required to approve the login. If five guardians are added, four are required for approval. With the approval from the quorum of guardians, the managers can be removed and added, hence achieving the account’s recovery.
In Closing
Account abstraction was a game-changing innovation in the Web3 world in 2023. It allowed AA wallets like Portkey to be created and boost the adoption of digital assets among folks who are considering or new to Web3. Portkey’s social recovery mechanism is unique, greatly simplifying and safeguarding account logins and asset recovery.
Now that you know how AA wallets work and how Portkey’s social recovery mechanism is set up, you’ve got an easy and safe way to migrate from Web2 to Web3.
Ready to make the leap? Get started with Portkey now!
*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.
About Portkey
Portkey: Zero-Barrier Entry Into Web3
Portkey simplifies your connection to the Web3 world with its cutting-edge ZK social logins and ZK social recovery, offering a zero-barrier entry for users. Integrating into the Telegram ecosystem, Portkey seamlessly bridges Web2 users to Web3 through blockchain, leveraging advanced zero-knowledge technologies for privacy and security without compromising convenience.
Built on the high-performance AI layer 1 blockchain platform aelf, Portkey provides a smooth transition and an enhanced user experience, setting new standards in the realm of Web3 digital wallets.
Stay connected with the Portkey community at:
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