Blockchain Abstraction: Concept, Benefits and Implementation
Date: 2024-07-10 Author: Oliver Abernathy Categories: BLOCKCHAIN
Blockchain abstraction is a concept that aims to separate the technical aspects of decentralized networks from the user interface and experience of interacting with applications. This is similar to how email users do not need to know email protocols to send emails.
In the blockchain context, the abstraction includes:
- Use of gas tokens to pay for transactions
- Simplify the creation and management of cryptocurrency wallets
- Transfer of assets between different networks
Such technical nuances often make the blockchain industry difficult for newcomers and prevent the mass adoption of blockchain services.
Key Benefits of Blockchain Abstraction
At the time of writing, there is no generally accepted definition of the blockchain abstraction. However, there are several key advantages:
1. Defragmentation of liquidity and audience: Abstraction removes barriers that impede the movement of capital and users between different blockchains.
2. Interface Improvement: Abstraction tools eliminate complex elements of application usage, such as the need to generate mnemonic phrases.
3. Empower developers: Product creators can choose infrastructure based on technical needs rather than liquidity or user base constraints.
4. Increased compatibility with traditional platforms: Abstraction allows you to create a seamless experience using Web2 and Web3 platforms, such as the Blinks interfaces in Solana.
Ways to achieve abstraction
The main obstacle to abstraction is the fragmentation of blockchains. To overcome this, most projects aim to improve interoperability. Depending on the direction of the team’s work and the final product, abstraction can be implemented at the level:
- Accounts (wallets: For example, Coinbase Smart Wallet supports authorization via email, 2FA and cross-chain transactions.
- Tech Stack: Projects like Near and Arcana are creating tools for developers to make it easier to implement abstractions.
- Blockchain infrastructures: Networks like Cosmos, Avalanche or Optimism provide mechanisms for interaction with other blockchains.
- General logic of interaction with the product: The concept of “intents” makes it possible to make the exchange of assets simpler by transferring operations to special agents (resolvers).
Examples and implementation
One example of a successful implementation of abstraction is the LayerZero protocol, which allows you to move assets between blockchains or stake ETH on L2 networks through products like Stargate. Another example is the abstraction of wallets on the Ethereum network, implemented in March 2023, which makes interaction with the network more convenient for users.
Implementing the blockchain abstraction faces several barriers:
- Technical: Different blockchains use different programming languages, address standards, and encryption methods.
- Cultural: There is tribalism and deliberate exclusivity of products in the industry.
- Economic: Each network competes for capital and prevents its outflow, making it difficult to create multi-network platforms.
Blockchain abstraction is an important step towards making decentralized applications easier to use and expanding their audience. Despite the technical and cultural barriers, the development of this concept promises to make interaction with blockchains more accessible and convenient, which, in turn, contributes to the widespread adoption of Web3 technologies.
