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Account abstraction

How Account Abstraction Simplifies Crypto Wallets on L1 and L2

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  • 8 min read
  • July 28, 2025
  • Account Abstraction for L1 and L2

    Crypto wallets have long felt like those remote controls with 50 buttons, but you only know what five of them do. While the tech-savvy might enjoy the complexity, most everyday users just want to send, receive, and store crypto without worrying about seed phrases, gas fees, or which blockchain layer they’re on. 

    That’s where Account Abstraction for L1 and L2 comes into play.

    In both Layer 1 (L1) and Layer 2 (L2) blockchains, account abstraction is being hailed as the future of user-friendly Web3. It’s not just a developer buzzword, it’s a game-changer for crypto wallets, and it’s redefining how users interact with decentralized applications (dApps).

    From gasless transactions to enhanced wallet security and recovery, account abstraction is making crypto more intuitive, especially when paired with smart systems like LYNC. Let’s take a step back to better understand all this!

    What is Account Abstraction?

    Account abstraction is a concept in Ethereum and other blockchain ecosystems where user accounts (externally owned accounts or EOAs) and smart contracts are blended into a single customizable account.

    Most traditional crypto wallets, like MetaMask, are controlled by a single private key. That key is like a master password, and if you lose it, there’s no way to get your wallet or funds back.

    They also don’t come with extra security features like two-factor authentication. To get that, you’d need to set up a separate, more advanced type of wallet using smart contracts.

    With account abstraction, every wallet becomes a programmable smart contract. This means you can add features like:

    • Biometric login
    • Daily spending limits
    • Social recovery
    • Automated payments
    • Gas fee sponsorship

    Think of it as turning your wallet from a basic calculator into a full-fledged smartphone.

    Account Abstraction for L1 and L2: What’s the Difference?

    A proper understanding of the differences requires a brief explanation of the fundamental components:

    1. L1 (Layer 1) is the base blockchain layer featuring Ethereum, Bitcoin, Solana, etc.
    2. L2 (Layer 2) is built on top of L1 to improve scalability, think Arbitrum, Optimism, zkSync.

    Account abstraction is being implemented across both L1 and L2, but the approaches and challenges differ.

    On Layer 1

    On Ethereum (L1), the ERC-4337 standard was introduced in 2023 to enable account abstraction without requiring changes to the Ethereum protocol itself.  It introduces a new concept called UserOperation, which allows users to send transactions to a decentralized “bundler”. This is a system that gathers and processes these requests, kind of like how a delivery service picks up and organizes packages before they’re shipped out on the blockchain.

    According to Ethereum Foundation, ERC-4337 is now live on mainnet and enables features like:

    • Gasless transactions
    • Multi-operation execution in one tx
    • Social recovery without seed phrases

    On Layer 2

    Layer 2s are generally more nimble and flexible than Layer 1s. Projects like zkSync Era, Starknet, and Arbitrum are embedding account abstraction directly at the protocol level. This makes using apps on these networks much easier and smoother, without having to deal with overly complicated steps.

    For example:

    • Starknet uses Cairo-based smart accounts, making abstraction the default rather than an add-on.

    Then there’s LYNC, an autonomous AI and Web3 Layer that pushes abstraction even further by building on top of both L1s and L2s with a user-first, abstraction-centric approach.

    Why LYNC Matters in L1 and L2 Account Abstraction

    At LYNC, we are convinced that account abstraction is the solution to mass adoption of Web3. Hence, we’re establishing a robust AI and Web3 layer that’s optimised to make user experiences easy and scale both on Layer 1 and Layer 2 setups.

    Our platform removes the complexity of blockchain development by offering a unified, no-code environment. Developers can launch smart wallets, deploy dApps, and tokenize assets without needing to write or manage smart contract code, reducing build time by up to 90%. As a business, a developer, or a founder, LYNC enables you to build next-generation Web3 experiences fueled by abstraction, automation, and AI, all from a single unified stack.

    Account Abstraction Use Cases

    So how does account abstraction actually help in real life? Here are a few simple scenarios:

    • Gaming: A new user signs into a blockchain game using only their email. Their wallet gets set up in the background, they get paid in tokens for playing the game, and they never have to pay gas fees because the game pays it.
    • DeFi Made Easy: A user wants to lend crypto on a DeFi platform. Instead of signing three different transactions, their smart wallet bundles them into one seamless step, with gas fees paid in USDC, not ETH.
    • NFT Marketplaces: A first-time NFT buyer uses a wallet created via Google login. If they lose access, they recover it with a backup email or Face ID. No seed phrase is needed.

     These are just a few ways account abstraction is turning Web3 from a complex frontier into a familiar, user-friendly space. Platforms like LYNC are making it possible.

    What’s Next? The Era of Mainstream Onboarding 

    With the development of Ethereum and its scaling layers, account abstraction is not a developer-centric feature anymore. It’s turning out to be a key building block to mass adoption. Those seed phrase management days, dealing with complex interfaces, or shelling out exorbitant gas fees are soon going to be in the past.

    The next billion users entering Web3 won’t want to deal with blockchain jargon or clunky wallet setups. With account abstraction, they won’t have to.

    Instead, they’ll be able to:

    • Log in with Apple ID, Google, or biometrics just like they do with everyday apps
    • Store their NFTs and tokens in wallets that are easily recoverable, even if they lose their phone
    • Use dApps on Ethereum and L2s like zkSync or Starknet without needing to know which chain they’re interacting with

    Platforms like LYNC are leading the way to easy transactions. Developers and users alike can now expect a Web3 experience that feels as seamless as using a mobile banking app or social media platform. The infrastructure is here. The tools are ready. Now, the focus is on designing for people, not just protocols.

    Final Thoughts

    Account abstraction for L1 and L2 is more than a technical upgrade, it’s a UX revolution. As protocols like Ethereum adopt ERC-4337 and L2s integrate native abstraction, the Web3 onboarding experience finally begins to match Web2.

    And with tools like LYNC heading the charge, developers and startups can craft elegant wallet experiences that meet users where they are.

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