Smart accounts are the new browser. The browser unified web access; smart accounts unify on-chain identity and execution. This shift moves the user's primary relationship from a single chain to a portable, programmable agent.
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Why the Smart Account is the New Browser for Web3
Externally Owned Accounts (EOAs) are the floppy disks of crypto. The smart account, powered by ERC-4337, is the new universal client that will manage identity, assets, and permissions, becoming the primary interface for all dApp interactions.
introduction
THE NEW PRIMITIVE
Introduction
Smart accounts are evolving from simple wallets into the primary user-facing interface for all on-chain activity.
The wallet is now an orchestrator. Unlike EOA wallets, smart accounts like Safe{Wallet} and Biconomy natively batch transactions, sponsor gas, and manage keys. They abstract the blockchain's complexity into a single interaction layer.
This enables intent-based systems. Users express a goal (e.g., 'swap ETH for USDC at best rate'), and the account, via UniswapX or CowSwap, finds the optimal path across DEXs and chains. The wallet becomes the router.
Evidence: ERC-4337 adoption is the metric. Over 4.5 million UserOperations have been processed, with Pimlico and Alchemy building the infrastructure that makes this scale possible.
thesis-statement
THE ARCHITECTURAL SHIFT
The Core Argument: From Passive Keyring to Active Agent
Smart accounts transform wallets from static key storage into programmable agents that execute complex intents.
Externally Owned Accounts (EOAs) are dead ends. They are passive keyrings that require manual, step-by-step execution for every action, from a simple swap to a cross-chain bridge, creating a user experience bottleneck.
Smart accounts are active agents. They are programmable contracts, like ERC-4337 accounts, that can batch transactions, pay gas in any token via Paymasters, and autonomously execute predefined logic, turning a user's intent into an outcome.
This is the browser moment for Web3. Just as browsers abstracted TCP/IP and HTTP, smart accounts from Safe, Biconomy, and ZeroDev abstract gas, key management, and cross-chain complexity, making on-chain interaction declarative.
Evidence: Over 7.4 million Safe smart accounts exist, with ERC-4337 bundlers processing millions of UserOperations, proving demand for this agent-centric model.
key-trends
FROM WALLETS TO INTERFACES
Key Trends Driving the Smart Account Revolution
Smart Accounts are not just better wallets; they are the programmable interface layer that makes Web3 usable for the next billion users.
01
The Problem: The Gas Fee Death Spiral
Users need ETH to pay for gas, but can't get ETH without paying gas first. This chicken-and-egg problem kills onboarding.\n- Solution: Sponsored Transactions and Paymasters (like those from Stackup, Biconomy) let apps pay gas fees in any token.\n- Impact: 0-lick onboarding; users never need to hold the native token.
~$0
User Gas Cost
90%+
Onboard Rate
02
The Problem: Key Management is a Single Point of Failure
A lost seed phrase means permanent, irreversible loss of funds—a UX non-starter for mass adoption.\n- Solution: Social Recovery & Multi-Sig Policies (pioneered by Safe, Argent).\n- Impact: Users can recover access via trusted contacts or devices, turning catastrophic failure into a recoverable event.
~$1B+
Value Secured
0
Irreversible Loss
03
The Problem: Atomic Actions are Limiting
Simple transfers require multiple wallet pop-ups and signings, making complex DeFi/GameFi interactions clunky and slow.\n- Solution: Batch Transactions & Session Keys. Bundle multiple actions (approve, swap, stake) into one signature.\n- Impact: Enables intent-based architectures (see UniswapX, CowSwap) where users specify what they want, not how to do it.
10x
Fewer Pop-ups
~500ms
Settlement Latency
04
The Problem: Chains are Silos
Users are forced to manually bridge assets and manage liquidity across fragmented L2s and app-chains, a terrible UX.\n- Solution: Native Account Abstraction on L2s (like zkSync, Starknet, Polygon) enables chain-agnostic smart accounts.\n- Impact: Seamless cross-chain experiences via intents, powered by infra like LayerZero and Across.
50+
Chains Abstracted
-90%
Bridge Complexity
05
The Problem: Web2-Style Subscriptions are Impossible
Recurring payments for services (streaming, SaaS) require manual, gas-heavy approvals each cycle on-chain.\n- Solution: Automated Transaction Streams. Set a spending policy once, and the account executes autonomously.\n- Impact: Unlocks subscription economies and autonomous agents that can act on behalf of the user within defined rules.
100%
Automation
$0.01
Micro-Tx Cost
06
The Problem: Privacy is an All-or-Nothing Game
Transparent EOAs link all user activity, creating toxic data leaks. Privacy chains (e.g., Aztec) require completely separate, complex tooling.\n- Solution: Programmable Privacy Modules. Attach zero-knowproof privacy for specific actions (e.g., private voting, hidden balances) to a main account.\n- Impact: Selective privacy becomes a feature, not a separate chain, enabling compliant yet confidential finance.
ZK-Proofs
Tech Enabler
Granular
Control
THE NEW USER PRIMITIVE
EOA vs. Smart Account: A Feature Matrix
A first-principles comparison of the legacy Externally Owned Account (EOA) standard versus modern Smart Contract Accounts (SCAs), highlighting the architectural shift from a passive keypair to an active, programmable user agent.
| Feature / Metric | EOA (Legacy) | Smart Account (ERC-4337 / AA) | Implication |
|---|---|---|---|
Architectural Primitive | Key Pair (Public/Private) | Smart Contract | SCA is programmable logic, not just a signature. |
Transaction Sponsorship (Gas Abstraction) | Enables paymasters like Biconomy, session keys, and fee subsidies. | ||
Native Multi-Sig & Social Recovery | Removes single point of failure; enables Safe, Argent Guardian models. | ||
Atomic Batch Transactions | Single signature can execute swaps on Uniswap, deposit to Aave, and mint an NFT. | ||
Signature Abstraction | ECDSA only | Any (ERC-1271) | Supports passkeys, MPC (Web3Auth), and quantum-resistant schemes. |
On-Chain Session Authorization | Grant limited permissions (e.g., 1 ETH/day spend limit) for 24 hours. | ||
Average Deployment Cost | 0 ETH | ~0.02 - 0.05 ETH | One-time cost for a permanent, upgradeable account. |
Account Upgradability | Logic can be migrated; no need to change address when improving security. |
deep-dive
THE INTERFACE SHIFT
The Browser Analogy: Deconstructing the Universal Client
Smart accounts are the new browser, abstracting blockchain complexity into a single, programmable user interface.
Smart accounts are the browser. Externally Owned Accounts (EOAs) are command-line interfaces, requiring manual transaction assembly. Smart accounts abstract this complexity, bundling operations like approvals and swaps into a single user intent, similar to how browsers render HTML instead of raw TCP packets.
The wallet is now the OS. A smart account wallet like Safe or Biconomy manages session keys, gas sponsorship, and cross-chain state. This shifts the security and execution layer from the protocol to the account, enabling features like social recovery and batched transactions that EOAs cannot natively support.
ERC-4337 is the HTTP. This standard creates a separate mempool for user operations, allowing bundlers (like Pimlico or Stackup) to handle transaction execution and paymasters to sponsor gas. This decouples payment from execution, enabling gasless onboarding and transaction fee abstraction across chains.
Evidence: Over 7.4 million ERC-4337 accounts have been created, processing more than 30 million UserOperations. Platforms like Coinbase's Smart Wallet use this standard to onboard users with a single click, eliminating seed phrases and pre-funding gas.
protocol-spotlight
SMART ACCOUNT INFRASTRUCTURE
Protocol Spotlight: Who's Building the New Browsers?
The smart account is the new browser for Web3, shifting the user-agent from a passive keypair to an active, programmable interface. Here are the protocols building the foundational infrastructure.
01
ERC-4337: The Standard for Account Abstraction
The problem: EOAs are dumb, insecure, and create terrible UX. The solution: A standard that decouples validation logic from a single private key, enabling smart accounts as first-class citizens on Ethereum and any EVM chain.
- Enables gas sponsorship and session keys for seamless interaction.
- Bundler/Paymaster network creates a new relay market, similar to the mempool for transactions.
~10M
Accounts Created
EVM+
Chain Coverage
02
ZeroDev & Pimlico: The Bundler & Paymaster Stack
The problem: Running your own bundler/paymaster is complex and costly. The solution: Infrastructure-as-a-service that abstracts gas and transaction execution, letting developers focus on UX.
- Aggregated signatures (e.g., BLS) reduce on-chain costs by ~30-50%.
- Sponsored transactions enable freemium models and seamless onboarding, critical for mass adoption.
~500ms
Bundler Latency
$1M+
Gas Sponsored
03
Safe{Core} & Account Kit: The Modular Account Standard
The problem: Smart accounts need to be secure, upgradeable, and interoperable. The solution: A modular stack that turns Safe multisigs into programmable smart accounts with plugin architecture.
- ~$100B+ in assets secured, providing a trusted base for migration.
- Module marketplace enables features like social recovery, rate limits, and transaction simulations.
$100B+
TVL Secured
1M+
Deployed Wallets
04
Privy & Dynamic: The Embedded Wallet Onramp
The problem: Seed phrases block mainstream users. The solution: Non-custodial, embedded wallets that use familiar Web2 logins (email, social) to create and manage smart accounts.
- ~2-second wallet creation via MPC and sign-in with Google.
- Seamless migration to full user custody, avoiding vendor lock-in.
2s
Sign-Up Time
0 Seed
Phrases
05
Biconomy & Rhinestone: The Plug-in Economy
The problem: Smart accounts are only as useful as their features. The solution: A developer ecosystem for building, discovering, and installing modular account extensions (modules and plugins).
- One-click install for features like deFi yield automation or subscription payments.
- Runtime validation ensures module security before execution, preventing malicious upgrades.
50+
Modules
Plug-in
Architecture
06
The Endgame: Chain Abstraction via Intents
The problem: Users don't care about chains, but managing liquidity and gas across them is a nightmare. The solution: Smart accounts that express user intents (e.g., 'swap X for Y') and let a solver network handle cross-chain execution via protocols like UniswapX, CowSwap, and Across.
- Unified liquidity across Ethereum, Solana, and Cosmos.
- Gasless experience on any chain, paid in any token.
10+
Chains Abstracted
Intent
Paradigm
counter-argument
THE TRADEOFF
Counter-Argument: Centralization and Complexity
The smart account's power introduces new systemic risks and user experience friction.
Centralized failure points are inherent in the architecture. Account abstraction relies on bundlers and paymasters, which are centralized services in practice. The dominant bundler infrastructure from Stackup or Pimlico creates a single point of censorship and transaction failure, contradicting Web3's decentralized ethos.
User experience complexity shifts but does not disappear. Managing session keys for gaming or social recovery setups via Safe{Wallet} introduces new cognitive overhead. The mental model moves from seed phrase custody to signer delegation and policy management, which is unfamiliar.
Interoperability fragmentation is the new walled garden. A smart account built for EVM chains via ERC-4337 is incompatible with Solana or Bitcoin L2s. This recreates the very silos the technology aims to break, requiring new cross-chain standards.
Evidence: The Ethereum Foundation's 4337 devnet shows over 90% of bundles are processed by a single centralized entity, demonstrating the immediate centralization risk in the current implementation.
future-outlook
THE NEW FRONTIER
Future Outlook: The Aggregation Layer Wins
Smart accounts will become the dominant interface for Web3, abstracting complexity and aggregating liquidity across chains.
Smart accounts are the new browser. They abstract away private keys, gas, and chain selection, shifting the user's mental model from managing infrastructure to declaring intent. This mirrors the web's evolution from typing IP addresses to using Google Chrome.
The aggregation layer wins. Applications will compete on the quality of their intent-solving backends, not their frontend UX. Protocols like UniswapX and CowSwap already demonstrate this by outsourcing order routing to a network of solvers.
Wallets become distribution channels. The smart account provider (e.g., Safe, ZeroDev, Biconomy) that owns the user relationship controls the default solver network and fee capture. This creates a platform play more valuable than any single dApp.
Evidence: The success of intent-based bridges like Across and LayerZero's DVN architecture proves that users prefer guaranteed outcomes over manual, multi-step transactions. This logic extends to all on-chain interactions.
takeaways
THE INFRASTRUCTURE SHIFT
TL;DR: Key Takeaways for Builders and Investors
Smart accounts are not just better wallets; they are the new execution layer for user-centric applications, fundamentally altering the economic and security model of on-chain interaction.
01
The Problem: The EOA is a Liability
Externally Owned Accounts (EOAs) like MetaMask are a single point of failure. They force users to manage seed phrases, pay gas directly, and execute one action at a time. This creates a ~$1B+ annual market for wallet drainers and caps UX at the 1990s web.
- User Acquisition Barrier: Seed phrases block the next billion users.
- Economic Inefficiency: Users overpay for gas and cannot batch transactions.
- Security Primitive: Lacks native social recovery or multi-factor authentication.
~$1B+
Annual Drain
0
Native Recovery
02
The Solution: Programmable User Session
Smart accounts (ERC-4337) turn a wallet into a programmable smart contract. This enables session keys, batched transactions, and gas sponsorship. Think of it as moving from a static HTML page (EOA) to a dynamic web app (Smart Account).
- UX Revolution: Enable 1-click transactions, subscription payments, and intent-based flows.
- Developer Monetization: Apps can abstract gas fees or use Paymasters, creating new business models.
- Composability: A single user operation can interact with multiple protocols (Uniswap, Aave, Compound) atomically.
10x+
UX Actions/Min
-90%
User Friction
03
The Architecture: Intent-Based Abstraction
Smart accounts are the entry point for intent-centric architectures. Users state what they want (e.g., "swap ETH for USDC at best rate"), and a solver network (like UniswapX, CowSwap, Across) handles the how. The smart account becomes the settlement layer.
- Market Structure Shift: Moves value from front-end liquidity to back-end solver networks.
- Efficiency Gain: Solvers compete on execution, yielding ~5-30 bps better prices for users.
- Cross-Chain Native: Intents abstract away chain boundaries, making LayerZero, CCIP, and Wormhole infrastructure components, not user-facing hurdles.
5-30 bps
Price Improvement
1
Unified Interface
04
The Business Model: Paymaster as a Service
The Paymaster (ERC-4337) is the most disruptive B2B component. It allows dApps, chains, or brands to sponsor user gas fees in any token. This turns customer acquisition cost (CAC) into a programmable on-chain marketing budget.
- On-Chain Growth Hacking: Projects can offer gasless transactions to attract users.
- Stablecoin Dominance: Users never need native gas tokens, cementing USDC/USDT as the primary on-chain currency.
- Revenue Stream: Paymaster operators can charge a premium for this service, creating a new infrastructure SaaS layer.
$0
User Gas
New SaaS
Revenue Model
05
The Security Paradox: More Complex, More Secure
While contract wallets are more complex than EOAs, they enable superior security models that are impossible with private keys. This shifts risk from user error to audited code and decentralized governance.
- Social Recovery: Users can set guardians (hardware wallets, friends, institutions) to recover access.
- Transaction Guards: Set spending limits, time locks, or whitelist specific dApp addresses.
- Audit Surface: Risk consolidates in the smart account code, which can be formally verified, unlike scattered user device security.
Multi-Sig
Native
Formal Verify
Possible
06
The Investment Thesis: Vertical Integration Wins
Winning stacks will bundle smart account infrastructure with key applications. Look for Smart Account SDKs (like ZeroDev, Biconomy) + Intent Solver + Paymaster as a unified product. The "browser wars" of Web3 will be fought at this layer.
- Platform Lock-In: The account becomes the user's identity across dApps, creating powerful network effects.
- Data Advantage: Account abstraction generates rich on-chain user intent data, valuable for solver optimization.
- M&A Target: Major wallets (MetaMask, Phantom) and chains will acquire or build this capability to avoid disintermediation.
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