The Age of Account Abstraction: Opportunities and Challenges by Daniel Yanev | Devcon SEA

[Music] uh hi everyone um my name is danev co-founder and CEO of rifi um and yeah today I'm going to talk to you about account abstraction and some of the challenges and opportunities that brings uh we only have five minutes so uh let's get uh let's get right into it um we would have uh heard a lot about account abstraction at this conference uh so I'm not going to repeat a lot of that but just to recap kind of what we're trying to achieve um as a basis for this talk uh where we're aming to get to with chain abstraction is that users are oblivious to what chain they're transacting on um that's completely removed from the from the from the ux they don't care is vitalic called yes the the credit card experience um and the second we're making is that users get the best execution of what they want to do if I want to buy e with usdt I can assume that I'm going to get uh the best the best price for that but what do we have today uh today we have daps which were deployed on multiple chains often in a messy way for example a is on 13 different blockchains that you need to kind of choose from the UI connect different wallets and so on um l2s and chains have direct to consumer power so there are these kind of strong Brands like let's say bass scroll arbitrum and they attract consumers directly in in different ways um and the ecosystems can be quite separate either ideologically or in ux so for example a Solana user might find using an ethereum L2 very strange um and and vice versa um but uh as we have heard a lot about this week there are a lot of Technologies coming which are which are going to uh to change this and bring us closer to that dream state now I think that's going to have some some consequences um and the way we can think about it is uh pre kind of inter pre- internet and pre Amazon uh you could have had a like let's say an electronic store in a town um and all the towns would be would be separate and your store has a captive audience the people in this town right so you could afford to run a crappy store like your store could be a bit expensive it could not be very good and people would still come to it because they don't really have choice now when Amazon comes along and people now have access to the same amazing Marketplace um running a crappy store becomes quite difficult right like you can't you can't attract um users anymore you're competing with kind of the best uh the best from all around not just in your town and I think something similar is going to happen uh with the different L2 uh ecosystems um that once users have access to the best uh protols and so on on kind of equal footing the ones which are not the best are are really going to suffer uh that's going to cause a few effects uh the first one is the kind of winner take all liquidity what I mean by that is that um we have a virtuous cycle uh that reinforces and makes the best products the best and the worst products even worse uh let's say again in our example we want to buy e with usdt our order gets rooted to the most liquid pool um and that happens with uh kind of all the orders um now that generates more fees for the LPS in that pool more LPS go into that pool it becomes even more liquid and so and so uh the wheel goes and that attracts um everything um and so you know the the top like let's say a few pools for this for this pair maybe get used the bottom ones will get no uh will get no uh flow whatsoever so that brings to the next point that like duplication is pointless having the same pool and the same protocol or a fork of it deployed on 20 chains um or multiple times on the same chain uh makes no sense and it will make even less sense um in this um in this world now that sounds a bit uh threatening a lot of a lot of our ecosystems are duplications in Forks uh right now um however there is also an upside to that uh which is the opposite this uniqueness is rewarded uh if you build uh a Dap or uh a protocol that adds value to the ecosystem it will now be exposed to the the whole ecosystem not just this chain but all the ones which are which are connected to it so if you bring if you build something of value it will be uh exposed to a much bigger audience uh regardless of what else happens on this particular chain you no longer need to have kind of Primitives on each chain um which brings to my next point that um up in this in this situation if we think about uh that a unique use case is what brings value to the chain the kind of value of this chain and the value of this protocol converge so we could see um the kind of app chain thesis um coming back that you only need one good use case on a chain to uh to make it successful uh so we could see uh each use case having um having its own chain for example you know if we here created a layer two and the only thing on it was we integrated uh Tai bat payments um now that could be into the rest of uh the l2s and so they could access that and we could have nothing else on this chain so the the use case in the chain um converge so uh we're just uh wrapping up now so I guess the whole point uh of what I'm trying to say is uh many of you may be uh Founders Builders uh maybe investors um Don't Waste Your Precious time and energy building Forks of of things um if you have that voice going in your head like oh let's do another Unis swap fork with a token on this new chain and we'll make loads of money shut that down shut it down and do something that matters because you'll be rewarded more than ever because this uh this mechanic makes sure that like unique things that add value get exposed to the whole ecosystem um immediately so you'll be rewarded more than ever for it um yeah thank you and I think now we're going to take some uh questions yes thanks a lot Danielle all right so we're going to do the questions with the catchbox if you're familiar with it I'm just going to throw it to you you're going to speak into the box and that's how we're going to do it so raise your hand if you have any questions and we'll get the box to you come on yes amazing so get ready and catch okay um so you talk about unique um daps on chains have you got any examples where this is already kind of bearing fruit um yeah so I think we can see examples of some chains that have managed to like build a mo because of um difficult to copy um Mechanics for example Tron uh which you know you know we're at Devcon uh it's not an evm chain but Tron has a very big network of payment service providers um which has made it very useful in a lot of emerging economies and now although Tron is expensive and kind of out of fashion and all is modern and like other chains are poised to kind of steal their uses that uh in that that network of PSPs is difficult to replicate so they have a mode and and that has use and I think we're going to see something similar happen with uh coinbase base and ink from Kraken being very efficient on ramping um rails because they have um the kind of relationships with the with the banks and payments providers that other chains might not have and that's something that will be difficult to to replicate um and and compete with all right I saw another question over here can you get the the box to this person perfect uh yeah one my questions is that I think liquidity definitely is the key here what are some of the best practices or strategies has worked uh to basically tracking liquidity to the CHF yeah so in terms of um yeah how do we attract liquidity how do we fight this this mechanic um so the first one which you know doesn't sound serious but it kind of is is like bribing the solvers and the intent uh intent networks um I think we will see chains of protocols essentially sort of paying for order flow which is something that um exists in in in traditional markets um and um I guess the the other the other one which hopefully is more positive is building kind of more and more efficient uh protocols so that they can have better outcome for users maybe with um maybe with less liquidity or generating more rewards for for the for the LPS perfect and that's all the time we have for questions uh give it up again for Daniel yanev thank you