The bull case for Chain Abstraction

Introduction

Web3 deserves a better multichain user experience. The rise of Layer 2 (L2) solutions, and soon Layer 3 (L3), has brought cheap and fast dApp interactions to everyone in the space. However, this progress has also created a confusing experience for users who must navigate bridging, gas fees, and infrastructure across multiple chains.

To address this issue, a new infrastructure innovation has been introduced: Chain Abstraction. This innovative approach aims to simplify multichain interactions, making it easier for users to engage with decentralized applications (dApps) without worrying about the complexities of underlying chains.

Interacting with a dApp across different chains today is challenging and time-consuming, even for experienced crypto users. For example, a simple task like supplying liquidity to a lending pool on another chain requires several steps: discovering the pool, bridging funds to the correct chain, acquiring gas on the target chain, and finally, depositing funds back into the original application. This cumbersome process discourages all but the most dedicated users and becomes increasingly fragmented as more L2s are launched.

This pattern applies to nearly any dApp user flow, such as depositing funds into a pool or vault, participating in an LBP or airdrop, paying for infrastructure or middleware, purchasing an NFT or POAP, or staking ETH in an LST protocol. Chain Abstraction represents a significant step forward in improving the user experience in the multichain Web3 world, making it more accessible and user-friendly for everyone.

What is Chain Abstraction

Chain abstraction simplifies how users interact with blockchain technology by separating the technical details from the user experience. This approach ensures users are unaware of the specific blockchain they are using, making the technology more accessible and user-friendly. Just as people use the internet without understanding its underlying technology, users should benefit from blockchain without needing to grasp its complexities.

Imagine using a dApp that allows seamless transactions across multiple networks. For example, Jane could order a coffee, buy discounted shoes, and earn rewards stored as NFTs on Ethereum, all within a single app. Later, she could use those rewards to buy event tickets on the BNB Smart Chain. Chain abstraction removes the need for Jane to manage multiple wallets, switch networks, or handle transaction fees, providing a smooth, integrated experience.

This approach also defragments liquidity and simplifies development. Liquidity often isolated within specific blockchains becomes accessible across various chains, offering users like Jane more competitive interest rates for lending tokens. Developers gain the flexibility to build dApps without being constrained to a single blockchain, choosing the best tools for their needs. This results in innovative and efficient dApps, driving broader adoption and more seamless blockchain interactions.

The Bull Case

Chain abstraction refers to creating an infrastructure and user experience that allows anyone to seamlessly interact with decentralized applications (dApps) across multiple blockchain networks without being aware of the complexities involved in dealing with each individual chain. These are a few reasons why we need Chain abstraction.

1. Simplifies Multi-Chain Interactions: Chain abstraction aims to abstract away the manual processes required for users to interact with multiple blockchain networks, such as bridging assets, managing multiple gas tokens, and keeping track of balances on different chains.
2. Enhances User Experience: By hiding the underlying complexities of interacting with various blockchains, chain abstraction provides a unified and intuitive user experience, making it easier for users to access and use dApps without needing to understand the technical details of each chain.
3. Enables Cross-Chain Interoperability: Chain abstraction facilitates seamless interoperability between different blockchain networks, allowing users to leverage their assets, accounts, and balances across multiple chains as if they were unified on a single platform.
4. Fosters Decentralized Application Development: Developers can build dApps that are not tied to the limitations or user base of a specific blockchain, enabling them to tap into resources from across the ecosystem and reach a broader audience.
5. Improves Cost Efficiency and Scalability: By enabling dApps to access value and users from around the ecosystem, chain abstraction can help optimize transaction costs and scalability, as developers can choose the most cost-effective and scalable blockchain for specific tasks.
6. Promotes Mainstream Adoption: By removing technical barriers and providing a user-friendly experience, chain abstraction aims to drive mainstream adoption of decentralized applications by making them accessible to a broader audience beyond the Web3-native community.

Conclusion

Chain abstraction offers a transformative approach to the multichain web3 ecosystem, making blockchain technology more accessible and user-friendly. By hiding the complexities of underlying chains, it allows users to interact seamlessly with decentralized applications, regardless of the blockchain they are built on. This enhances user experience and simplifies development, defragments liquidity, and fosters cross-chain interoperability. As a result, chain abstraction paves the way for broader adoption of decentralized applications, reaching a wider audience beyond the Web3-native community.