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web3-philosophy-sovereignty-and-ownership
Blog

Why Batch Transactions Redefine On-Chain Agency

EOA transactions are a primitive relic. Batch transactions via smart accounts transform intent into atomic, guaranteed outcomes, finally delivering on the promise of user sovereignty.

introduction
THE AGENCY SHIFT

Introduction

Batch transactions transform user agency from direct execution to outcome specification, abstracting blockchain complexity.

Batch transactions redefine agency by shifting user responsibility from managing individual operations to defining a final state. This moves the burden of execution logic and gas optimization to specialized solvers, as seen in intent-based systems like UniswapX and CowSwap.

The counter-intuitive insight is that less direct control yields better results. Users specify what they want, not how to achieve it, enabling solvers to find optimal paths across DEXs and bridges like Across and LayerZero that a user could never manually construct.

Evidence for this shift is the volume. UniswapX settled over $7B in its first year by batching intents, proving users prioritize guaranteed outcomes over manual execution control.

thesis-statement
THE AGENCY SHIFT

Thesis Statement

Batch transactions shift on-chain agency from the user's wallet to a new class of specialized, competitive solvers.

Agency migrates to solvers. Users express desired outcomes (intents) instead of signing explicit transactions, delegating execution pathfinding to a competitive solver network like UniswapX or CowSwap.

Batch processing unlocks efficiency. Solvers aggregate thousands of intents off-chain, compute optimal execution across DEXs and bridges like Across and Stargate, and submit a single, cost-effective batch transaction.

This redefines wallet primacy. The user's wallet is no longer the execution engine; it becomes a policy engine that sets constraints, while specialized infrastructure competes to fulfill the intent at the best price.

Evidence: UniswapX, which routes orders via this model, now processes over $20B in volume, demonstrating that users delegate agency for superior execution.

market-context
THE AGENCY SHIFT

Market Context

Batch transactions are shifting agency from users to specialized solvers, creating a new market for execution efficiency.

Batch transactions shift agency from individual users to specialized solvers. Users express desired outcomes (intents) while solvers compete to find the optimal, often cross-chain, execution path using liquidity from protocols like Uniswap, 1inch, and Stargate.

This redefines the value chain by commoditizing raw transaction execution. The new moat is intelligent routing and MEV extraction, a shift visible in the rise of intent-based architectures from UniswapX, CowSwap, and Across Protocol.

The market incentive is execution surplus. Solvers profit from the difference between a user's maximum acceptable cost and the actual execution cost, creating a competitive landscape for efficiency that directly benefits end-users.

Evidence: UniswapX processes billions in volume by outsourcing routing. This model demonstrates that users prioritize guaranteed outcomes over manually managing liquidity across dozens of DEXs and L2s.

BATCH TRANSACTIONS AS A PROXY FOR AGENCY

EOA vs. Smart Account: The Agency Gap

Compares the fundamental capabilities of Externally Owned Accounts (EOAs) versus Smart Contract Accounts (SCAs), demonstrating how batch execution redefines user sovereignty and on-chain intent.

Core Agency FeatureTraditional EOA (e.g., MetaMask)Smart Account (e.g., Safe, Biconomy, ZeroDev)Implication for User Agency

Atomic Batch Execution

Multi-step operations (swap + bridge + stake) succeed or fail as one unit.

Gas Abstraction / Sponsorship

User can pay fees in any ERC-20 token or have a dApp pay; eliminates native token dependency.

Transaction Nonce Management

Linear (1, 2, 3...)

Parallel & Programmable

Enables seamless multi-app interaction without failed tx collisions.

Permissioned Session Keys

Delegates limited authority (e.g., 100 USDC swaps for 24h) to a hot wallet for specific dApps.

On-Chain Social Recovery

Recover access via pre-set guardians (other wallets, devices, entities) without seed phrases.

Intent-Based Batching (ERC-4337)

Submit desired outcome (e.g., 'get best price for 1 ETH'); bundler constructs and submits optimal tx batch.

Average Gas Overhead per User Op

0% (Baseline)

~42k gas (ERC-4337 EntryPoint)

Fixed cost enables economic batching; negligible for complex multi-op bundles.

Native Multi-Chain Identity

Single account abstraction layer (via Safe{Core} AA, Biconomy, Particle) manages assets across EVM chains.

deep-dive
THE PARADIGM SHIFT

Deep Dive: From Sequential Steps to Atomic Intents

Batch transactions transform user experience from a manual, multi-step process into a single, atomic intent.

Sequential execution is obsolete. Users currently act as their own settlement layer, manually bridging assets, swapping, and depositing across separate transactions. This exposes them to slippage and front-running.

Atomic intents abstract the steps. Users submit a desired end-state, like 'swap ETH for USDC on Arbitrum'. Protocols like UniswapX and CowSwap decompose this into a batch of transactions executed atomically by a solver network.

This redefines on-chain agency. Agency shifts from managing execution to defining outcomes. The user's role simplifies to expressing intent, while specialized infrastructure handles the complex, cross-domain execution path.

Evidence: UniswapX processed over $7B in volume by batching orders off-chain for MEV protection and atomic settlement, demonstrating demand for intent-based abstraction.

case-study
BATCH TRANSACTIONS IN ACTION

Case Study: The Atomic Swap & Stake

A deep dive into how atomic composition restores user sovereignty by collapsing multi-step DeFi workflows into a single, risk-free interaction.

01

The Problem: Fragmented Liquidity & Slippage Loops

Traditional DeFi forces users to execute sequential transactions, exposing them to front-running and price movement between steps. Swapping ETH for a liquid staking token, then staking it, creates two separate points of failure and cost.

  • Execution Risk: Price moves between swap and stake steps.
  • MEV Extraction: Each transaction is a separate target for bots.
  • UX Friction: Requires multiple wallet confirmations and gas payments.
2-3x
More Gas
>5%
Slippage Risk
02

The Solution: Atomic Intent-Based Routing

Protocols like UniswapX and CowSwap abstract execution. The user submits a signed intent ("give me stETH"), and a solver network atomically finds the optimal path across DEXs and staking contracts.

  • Guaranteed Outcome: User gets stETH or the entire transaction reverts.
  • Optimal Execution: Solvers compete to provide the best net rate, bundling swap + stake.
  • MEV Resistance: The user's intent is fulfilled in a single, settled block state.
~0%
Slippage
1 Tx
User Experience
03

The Architecture: Cross-Chain Settlement Engines

For cross-chain swaps, infrastructure like LayerZero and Axelar provide the messaging layer, while Across and Socket act as intent-based bridges. They enable atomic swaps between native assets on different chains without wrapping.

  • Unified Liquidity: Tap into pools across Ethereum, Arbitrum, and Base simultaneously.
  • Atomic Guarantees: Funds only move on the destination chain if the source chain swap succeeds.
  • Cost Efficiency: Eliminates the double gas fee of bridge-in, swap, bridge-out workflows.
60%
Cheaper
Multi-Chain
Liquidity
04

The Result: Reclaimed User Agency

Batch transactions shift power from the protocol layer to the user's intent layer. The blockchain becomes a settlement guarantee, not an execution bottleneck.

  • Sovereign Execution: Users define the end state, not the intermediary steps.
  • Capital Efficiency: No funds are locked in intermediate, non-yielding states.
  • Composable Security: The atomic revert is the ultimate user protection, making complex DeFi as safe as a simple transfer.
10x
UX Simplicity
Zero Trust
Required
counter-argument
THE AGENCY SHIFT

Counter-Argument: Is This Just a UX Improvement?

Batch transactions are a fundamental architectural shift that transfers agency from the protocol to the user.

This is a protocol-level re-architecture. UX improvements hide complexity; batch transactions fundamentally alter the transaction lifecycle. They move the execution logic from the smart contract into the user's signed payload.

It inverts the smart contract paradigm. Traditional dApps are state machines users query. With batching, the user's intent bundle is the program, and the network becomes a generalized executor, similar to the shift from Uniswap V2 to UniswapX.

This creates a new trust surface. Users no longer trust individual contract logic mid-flow. They trust a settlement guarantee from the sequencer or solver network, a model pioneered by Across Protocol and CowSwap for intents.

Evidence: The rise of intent-based architectures and shared sequencers like Espresso or Astria proves the market values this agency shift. They treat the blockchain as a settlement layer, not an execution engine.

risk-analysis
WHY BATCH TRANSACTIONS REDEFINE ON-CHAIN AGENCY

Risk Analysis: New Primitives, New Attack Vectors

Batch transactions shift agency from users to specialized actors, creating systemic risks that demand new security models.

01

The Problem: Solver Centralization Risk

Intent-based systems like UniswapX and CowSwap rely on a small set of solvers. This creates a single point of failure for $10B+ in monthly volume.\n- MEV extraction becomes institutionalized, not democratized.\n- Censorship vectors emerge if solvers collude or are regulated.\n- Liveness risk if the dominant solver fails.

<10
Dominant Solvers
$10B+
Monthly Exposure
02

The Solution: Verifiable Execution & Force Trades

Protocols like Across and Chainlink CCIP use on-chain verification to constrain solver behavior. This enforces the cryptoeconomic security of the underlying chain.\n- Force trade mechanisms allow users to reclaim assets if a solver defaults.\n- Fraud proofs or optimistic periods create a window for challenging bad execution.\n- Shifts trust from the actor to the verification game.

30 min
Typical Challenge Window
L1 Security
Trust Anchor
03

The Problem: Cross-Chain Message Forgery

Batch transactions often rely on cross-chain messaging from LayerZero, Wormhole, or Axelar. A compromised message leads to irreversible, batched theft.\n- Oracle manipulation can forge settlement instructions for an entire batch.\n- Signature quorum attacks on relayers are high-value targets.\n- Time delay attacks exploit the latency between execution and verification.

$2B+
Historic Bridge Exploits
~3 min
Vulnerability Window
04

The Solution: Shared Sequencer & Atomic Settlement

Networks like EigenLayer and Espresso propose a shared sequencer layer. This provides a canonical ordering source, making cross-domain batches atomic and observable.\n- Prevents double-spends across rollups in the same batch.\n- Reduces latency arbitrage and related MEV.\n- Creates a unified data availability layer for batch proofs.

~500ms
Ordering Latency
Atomic
Cross-Rollup Tx
05

The Problem: Privacy Leaks in Intents

Submitting an intent to a public mempool (even via a private RPC) reveals future trading strategy. Solvers can front-run the entire batch.\n- JIT liquidity attacks become more profitable at scale.\n- Cross-intent correlation exposes complex DeFi strategies.\n- Privacy is fundamentally at odds with permissionless solving.

>90%
MEV-Extractable Value
Public
Intent Mempool
06

The Solution: Encrypted Mempools & Threshold Cryptography

Adoption of FHE (Fully Homomorphic Encryption) or TEEs (Trusted Execution Environments) for intent submission. Projects like Fhenix and Phala Network are pioneering this.\n- Solvers compute on encrypted data, bidding for the right to solve.\n- Transaction content is only revealed after commitment.\n- Preserves competition while eliminating information leakage.

TEE/FHE
Core Tech
Zero Leakage
Goal
future-outlook
THE AGENCY SHIFT

Future Outlook: The Intent-Centric Stack

Batch transactions are shifting agency from users to specialized solvers, redefining on-chain interaction.

Batch transactions abstract execution complexity. Users express desired outcomes (intents) while solvers compete to fulfill them optimally. This moves agency from manual transaction crafting to intent specification.

This creates a solver economy. Protocols like UniswapX and CowSwap demonstrate that solvers, not users, compete on gas efficiency and MEV extraction. User agency shifts to choosing the best intent standard.

The counter-intuitive insight is reduced sovereignty. Users trade direct chain control for better prices and guaranteed outcomes. The system's agency resides in the solver network's competition, not individual wallet actions.

Evidence: 90% of CowSwap volume is settled via batch auctions. This proves users delegate execution agency for superior pricing, validating the intent-centric model's economic dominance.

takeaways
WHY BATCHING IS A PARADIGM SHIFT

Key Takeaways

Batch transactions move agency from the user's wallet to a solver network, fundamentally altering the on-chain interaction model.

01

The Problem: The Wallet is a Bottleneck

Every user signature is a sequential, atomic operation. This creates combinatorial complexity for multi-step DeFi actions and exposes users to front-running and MEV extraction on every step.\n- Gas inefficiency: Paying for each step's overhead.\n- Execution risk: One failed transaction kills the entire sequence.

~30%
Wasted Gas
High
MEV Leakage
02

The Solution: Intent-Based Batching (UniswapX, CowSwap)

Users submit a signed intent (desired outcome), not a transaction. A competitive solver network uses private mempools to find optimal execution across DEXs and bridges.\n- Better prices: Solvers compete on fill quality, not gas bidding.\n- Atomic composability: Cross-chain swaps and complex routes succeed or revert as one unit.

10-30%
Better Price
Atomic
Execution
03

The Architectural Shift: From State Chains to Settlement Layers

With Across and LayerZero enabling batched cross-chain messages, L1s/L2s evolve into settlement layers for proven state updates. Execution moves off-chain to specialized networks.\n- Scalability: Batch proofs compress thousands of actions.\n- Specialization: Separates execution, data availability, and settlement.

1000x
Scale Potential
Modular
Stack
04

The New Risk: Solver Trust & Centralization

Agency shifts to the solver, creating new trust assumptions. Users must trust the solver's liveness and correctness. This risks re-centralizing power to a few dominant solver networks.\n- Censorship risk: Solvers can exclude certain transactions.\n- Cartel formation: Solvers could collude on fees or order flow.

New
Trust Vector
Critical
Decentralization
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