Navigating Intents, Unveiling a User-centric Pathway in Blockchain Transactions

Problem Statement

In traditional systems, users have to specify every step of a process, much like giving turn-by-turn directions. This is called a transaction-based approach. However, this can be tiresome and doesn't always lead to the best outcome, especially when users aren't aware of all the options available to them.

Enter the concept of "intents." Instead of specifying every step, users simply state their desired outcome, like telling a taxi driver a destination without worrying about the route. In the crypto space, this means users can express what they want to achieve, and specialized entities, known as "solvers," figure out the best way to make it happen. For instance, if someone wants to swap a token, they don't need to know about all the exchanges or the best rates; they just state their intent, and the system takes care of the rest.

However, this new approach isn't without challenges. There are concerns about privacy, as all intents could be visible to everyone. There's also the risk that a few efficient solvers might dominate the market, reducing competition. Plus, not all intents can be fulfilled immediately or even at all.

But despite these challenges, the move towards intent-based systems is seen as a positive step towards a more user-friendly digital experience. It simplifies interactions and can potentially lead to better outcomes by considering a broader range of solutions than a user might be aware of.

Intent in simple terms

Intents are about focusing on the final result, not the steps to get there. So, while a transaction tells you the entire route, an intent just points to the destination.

Now, who decides how we get to that destination? Both transactions and intents rely on someone else to figure out the best path. But there's a key difference. Transactions are set by apps that only consider what the user directly asks for, without looking at the bigger picture. For instance, if you use a specific DEX, you're limited to what that site offers, even if there are better options elsewhere.

Take a simple trade on Uniswap as an example. You might want to exchange some Ethereum for USDC. But there are hidden choices made for you, like which pool to use or what fees you'll pay. Some of these choices can be changed, but others can't. And often, you might not even be aware of them.

There are tools that try to give you more options, like DEX aggregators. But they still have limits. The real game-changer is letting experts, with a full view of the market, figure out the best way to achieve your goal. That's the magic of intents. They ensure you get the best outcome, tailored to your needs, without the hassle of micromanaging every step.

More complex dive into intents

Transactions on blockchain networks, especially for newcomers, can be a daunting task due to their complex nature. Users often find themselves lost in a web of technical details. Intents marks a shift towards simplifying this experience. Unlike the conventional transaction methods that require users to specify every detail, intents allow users to merely express their desired outcome, making transactions more user-friendly. This shift aims to lessen the burden on users, making blockchain interactions more accessible and efficient.

Intents alleviate the complexity of transaction creations, like managing a network of smart contracts and gas fees. Intents can also be bundled into a single transaction, enhancing gas and economic efficiency. However, they also pose challenges. Intent-based designs can impact off-chain infrastructure, with concerns around Miner Extractable Value (MEV) and market control. Existing designs like Account Abstraction (AA) struggle with seamless cross-chain operations, and the Ethereum mempool's design doesn’t support intent propagation, hindering adoption.

Currently, they're seen as a means to improve blockchain interactions, with projects exploring their implementation. While intents present an exciting shift in transacting on blockchain, they also bring forth challenges and risks, especially concerning Ethereum's ecosystem. The adoption of intents could steer user activity towards alternative mempools, risking centralization and the rise of rent-seeking middlemen if not well-managed. A poorly handled migration out of the public mempool might centralize block production, threatening the competitive market essential for block builders. Trust issues also arise as intent-based architectures rely on intermediaries, creating high entry barriers that could stifle innovation and competition

Moving forward, there's excitement around intents, especially concerning cross-chain MEV and ERC-4337 style account abstraction. Research is underway to discover new applications like cross-domain intents, showcasing a growing recognition of making blockchain interactions more user-friendly and efficient, providing a promising pathway towards a more accessible and optimized blockchain ecosystem.

Leading projects building intents

Anoma

Anoma offers a fresh framework for creating full-stack decentralized applications, catering to endless users and intents of any complexity. It's built on intent-centricity and a mixed architecture/security model, forming a declarative paradigm for decentralized application development. Users submit intents to gossip nodes, forming pools. Matchmakers then sift through these pools to find intents that fulfill each other. Through a protocol state machine, it orchestrates step-by-step execution with separated validation, aided by validity predicates on user accounts. This design makes it easy to develop new applications, overcoming the limitations of existing frameworks like Ethereum.

IntentX

IntentX is changing on-chain trading with an intent-based architecture. It boasts features like deep liquidity, lower fees, no reliance on oracles, a wide range of asset pairs, and no liquidity pools. Liquidity is aggregated rather than fragmented, promoting efficient access across multiple chains. It also emphasizes capital efficiency with its just-in-time liquidity feature, ensuring a liquid trading market at lower costs. This architecture supports self-custody, permissionless, and trustless trading, leveraging the full security of blockchain technology

Suave

SUAVE, standing for Single Unifying Auction for Value Expression, aims to empower users and enhance decentralization in public blockchains. It separates the mempool and block builder roles from existing setups, offering a decentralized, specialized alternative. By sharing a common sequencing layer, it ensures decentralization, enables block builders to seize cross-domain MEV, allows validators to boost their revenue, and provides users with optimal transaction execution.

Essential

Essential is crafting products to transition from value extraction to intent satisfaction in blockchain. They're developing a domain-specific language (DSL) for intents, an Ethereum standard for intent-centric account abstraction, and a modular intent layer. The DSL standardizes intent expression, aiding the development of intent-based applications. The account abstraction allows solvers to create valid transactions from user intents, integrating intent functionality into existing EVM chains. The modular intent layer focuses on an intent-only architecture, aggregated order flow, MEV resistance, and cross-chain execution, aligning with Essential's mission to empower users for a user-centric, fair blockchain future.

Conclusion

The shift from traditional transaction-based systems to intent-driven frameworks unveils a promising time for the blockchain domain. It's a leap from the rigidity of specifying every procedural step to the fluidity of expressing desired outcomes. The advent of intents is akin to opening doors to rooms filled with potential, simplifying the once daunting task of transaction crafting on blockchain networks.

Projects like Anoma, IntentX, Suave, and Essential are innovators towards a more user-centric blockchain ecosystem. Their frameworks and platforms reflect a shared vision - to diminish the barriers that shroud blockchain interactions, making them more accessible, efficient, and favorable to the user.

However, like every pioneering transition, the shift towards intent-based systems carries its share of challenges and uncertainties. Privacy concerns, potential market domination by a few efficient solvers, and the fulfilment feasibility of intents are hurdles that need thoughtful consideration and robust solutions.

As we move towards a future where blockchain transactions become as simple as stating a wish, the collaborative efforts of the blockchain community will be the linchpin for overcoming challenges and realizing the full potential of intents.