Introduction
With the rapid development of the blockchain industry especially modular solutions, creating a blockchain has become simpler than ever, even many toolkits support deploying a layer-2 in just 15 minutes, which leads to a rapid increase in the number of networks.
According to data from Coingecko, the market currently has around 300 active blockchains, and if you include projects in development, this number could be over 1,000. A major consequence of this rapid increase in number is liquidity fragmentation and poor user experience.
As we all know, each network has its own configuration, uses its own asset managers and operates differently. To start using it, users need to deposit funds into those networks via bridges, set up settings, download applications, save seed phases, etc. For non-techies, it is a real nightmare in the blockchain maze.
If you are not tech-savvy and have experience in the DeFi market, these barriers can easily cause users to give up. Not to mention that developers also have difficulty when wanting their dApps to communicate with multiple networks due to technological fragmentation.
According to a report from TripleA in May 2024, the number of global crypto owners is only 562 million, corresponding to a penetration rate of 6.8%. This number is equivalent to the Internet in the period 2001-2002, the current internet penetration rate is about 66.2%.
These were soon recognized by developers, and over the years many improvements have been introduced such as Cross-chain, Account Abstraction, Intent Centric and most recently Chain Abstraction, a solution considered to be the “end game” for the user experience problem.
In the following sections, we will learn in detail about Chain Abstraction, how it works, its advantages and disadvantages.
What is Abstraction?
You may have heard the word “abstraction” a lot about account abstraction solutions in the crypto market, but abstraction is also commonly used in other fields.
Abstraction is a concept used in many fields such as computing, mathematics and philosophy, referring to the simplification of complex systems by removing unnecessary details and focusing only on core aspects.
In programming, abstraction hides complex details, allowing users to interact with the system through a simple interface. It helps reduce complexity, increase flexibility, and reuse source code.
What is Chain Abstraction?
Chain Abstraction is a concept that refers to simplifying user interactions with different blockchains, providing a “blockchain-free” experience.
Instead of having to perform complex operations such as transferring assets between chains, managing multiple gas tokens, or switching networks, Chain Abstraction helps users interact with decentralized applications through a single interface without requiring extensive technical knowledge. This makes the Web3 experience more accessible and convenient.
Similar to when you use popular banking or e-wallet applications, do you know whether they are stored on AWS, Google Cloud or private data central servers, or do you need to care about whether you are connecting to the app via Viettel or FPT network?
In short, Chain Abstraction helps users only care about the application's features without needing/wanting to know about their infrastructure layer.
How Chain Abstraction Works
First we need to understand that Chain Abstraction is not a technology, it is a comprehensive set of solutions aimed at user experience that can only be achieved through multiple layers of technology.
The two major problems that Chain Abstraction needs to solve are Technology Fragmentation and Liquidity Fragmentation. Current solutions are trying to solve some or all of the above problems. More specifically, the tasks that need to be solved below the application layer include:
Identify users across multiple networks
Cross-chain communication and authentication
Flexible network identification and switching
Multi-chain asset management
Multi-chain gas fee processing
Although the Chain Abstraction keyword only started to be mentioned a lot in 2024, there have been quite a few models introduced. The most famous are the CAKE framework from Frontier Research, Chain Abstraction Stack from Everclear, and Multi-Layer Framework from Particle Network.
CAKE Framework
Frontier Research's CAKE Framework divides the infrastructure for Chain Abstraction into four layers:
Application Layer: The application layer that interfaces with the user. It is responsible for connecting the user to the dApp and providing a seamless experience by hiding the complex details of the blockchain.
Permission Layer: The layer that manages access rights. This layer ensures that users can perform actions and authenticate transactions. This layer is often handled by user asset management solutions such as Account Abstraction.
Solver Layer: Solver Layer. This layer calculates and optimizes transaction costs and times. It helps users choose the best options. This layer is the emergence of the Intent-Centric model.
Settlement Layer: The settlement layer. Ensures that transactions are completed and recorded on the blockchain. This layer is responsible for recording and validating transactions that have been made.
Chain Abstraction Stack
Everclear's Chain Abstraction Stack (formerly Connext) breaks down the layers further and focuses on user intent. There are 5 layers in the operating model:
Permissions: The access management layer, responsible for collecting intent and managing permissions from users.
Auctions: Choose the Solver that matches the user's intention to execute the transaction.
Solving: Where user intentions are processed at the goal chain.
Clearing: Performs cross-chain clearing to balance liquidity. This layer is handled by the Everlear project itself.
Settlement: Handles final executions on the blockchain.
Multi-Layer Framework
Multi-Layer Framework by Particle Network is a multi-layer architecture designed to optimize user experience and interoperability between blockchains. It consists of three main layers: Application, Account, and Blockchain, corresponding to the problem sets that need to be solved at each layer.
Specifically, the tasks of each class are as follows:
Application layer: The application layer, also known as Orchestration, enables developers to build and deploy dApps on multiple blockchains without changing the application structure. It helps coordinate cross-chain transactions smoothly and efficiently.
Account layer: Helps identify and manage user balances across multiple chains, allowing users to manage assets without worrying about the complexity of switching back and forth between blockchains.
Blockchain layer: Ensures interoperability and security between blockchains, allowing chains to share resources and communicate efficiently, while reducing costs and risks when conducting cross-chain transactions.
In general, all Chain Abstraction models are a combination of multiple technology layers with the ultimate goal being user experience.
At the user-facing layer are user-friendly interfaces that hide the underlying complexity of the blockchain, allowing users to focus on the product features. Projects in this group provide developers with toolkits to build applications that are less dependent on the chain.
The next layer is the access management layer through solutions such as Account Abstraction, Intent Centric. This layer helps users manage assets across different chains, capture intents and coordinate execution flows to deliver the best results.
Below is the solution layer responsible for executing user intentions, this layer often has the appearance of solutions related to the business of creating liquidity for the market.
Finally, there is the Settlement layer, where user transactions will be secured on target blockchain networks.
Featured projects
Application layer
Agoric, Socket, Skip, Orb Labs, Light, Okto, Klashter, LiFi.
Permission layer
Particle Network, Near, Xion, Arcana, Aarc, OneBalance, Orb Labs, Light, Safe, Argent.
Solver layer
UniswapX, Suave, Everclear, Essential, Anoma, Across, Socket, Aori, Enso, Khalani, Valentis, Wintermute, Amber.
Settlement layer
Ethereum, Polygon, Optimism, ZKsync, Bitcoin, LayerZero, Wormhole, Axelar, Hyperlane, CCIP (Chainlink), ZetaChain, EigenLayer, Celestia, Avai.
Conclusion
Web3 gives users more control over their data and assets. However, the price to pay is technical complexity, especially in the context of the number of blockchains that are increasing by the day in a “spam” way.
Chain Abstraction is not just a solution but the destination for the Web3 industry, focusing on smoothing the user experience will be a good stepping stone to bring this technology to the mainstream.
Above is all the information about Chain Abstraction - the "end game" solution for Web3 user experience, hope the article helps you in the research process.
