An Ethereum address can be described as a 42-bit string beginning with 0x. As the most basic part of the crypto infrastructure, addresses are the carriers of users’ assets, rights, and on-chain interactions. It is common to see users name their Twitter with 0x in order to identify themselves as blockchain players. This demonstrates how important and representative addresses are to the users of the chain.
There are over 200 million addresses in the Ethereum blockchain alone, which makes it easy for anyone to get into the on-chain realm. Each day, an average of 500,000 addresses have logged onto the Ethereum chain.
Metamask and other mainstream wallets are often used by users to manage their addresses. However, the increasing Web3 protocols have opened rich usage scenarios for users, and also stimulated many users’ demands yet to be met, such as address co-management, private key recovery, address privacy and so on. Based on these requirements, many innovative solutions are being proposed by the developers of On-chain.
Through the use of Gnosis Safe or Argent Wallet, this article will explain the goals of infrastructure developers in improving the security and usability address management. By looking into Blank Wallet, a project focusing on private transactions, and A3S Protocol, a pioneer in “transferable addresses”, having a glimpse of how the “careerists” bring revolutionary changes to this entrance-level field of the Web3 world.
1. The Dreamers are those who seek security and useability.
1.1 Security: Multisignature Management Scheme to Addresses
Gnosis Safe, the multi-signature solution to secure address management and co-management, is represented by Gnosis Safe. Multi-signature simply refers to the requirement that multiple owners and devices be set up by the user. The transaction needs to be approved by at least one role before it is possible. Gnosis Safe provides additional rights management features, including batch transactions, custom modules, and authorizations under specific conditions, like social recovery and allowance modules.
1.2 Usability: Address management is mnemonic-free
In terms of usability, a representative project is Argent, featuring “no private key” and “no mnemonic”, thereby greatly reducing the user’s threshold. Argent allows users to set up several other accounts or devices as Guardians, to facilitate the recovery of accounts and assets through Guardian’s verification if the device is replaced or the address is stolen. The wallet owner can also grant the “keeper” several permissions, including locking and unlocking accounts, triggering account recovery procedures, and approving large transactions.
At the same time, Argent also gives away 1 ENS domain per user, which allows users to convert a long list of complex addresses starting with 0x into easier-to-remember “URLs” ending with “.eth” to further improve the user experience.
2. Strong Anonymity, Subversive SBT Careerist
Privacy: Addresses Privacy Protection
As a public ledger, users’ privacy is one of the weaknesses of Blockchains. To conduct private transactions users often require a currency mix such as Tornado Cash. Blank was designed as an address management protocol for private transactions.
Blank uses the currency-mixing and zero-knowledge proof method to make private transactions. Specifically, whenever a user transfers funds, Blank will generate a password for the transaction and mix the funds, which will also become the proof of the payments sent; when a user accepts the transfer, Blank will create a brand-new address to receive the funds; also, the transaction will be mixed with Blank’s internal fund pool to conceal user’s financial information. Blank will provide users with wallet application and allow them to be added into DeFi projects or other wallets.
2.2 Liquidity – Control the separation of addresses and their transferability
Due to the nature of the private key, the ownership of addresses can only be shared but is difficult to be transferred as it’s almost impossible to ensure one has completely forgotten or discarded its private key. A3S Protocol is a protocol that separates control over the address and gives it liquidity.
This innovative idea was discovered by users during the highly anticipated Grants Round 14 (GR14) of Gitcoin. The relevant information remains to be limited as people try to understand the project developer’s “ambition”.
A3S Protocol does not function as a wallet. It no longer relies on private key signatures for address control. It is a protocol that uses NFT as the “controller” of the addresses. The protocol lets users create an address that can be controlled by NFT and then transfer the control to the NFT. A3S Protocol eliminates all mnemonics. It replaces abstract mnemonics with concrete NFTs. Just like a real key, whoever holds the “key” has control of the address. Due to the non-fungible nature of NFT, the “key” is also unique and there are no concerns of being copied. In addition, this “key” being an NFT can be easily adapted to the existing NFT infrastructure.
Project conception states that after NFT-Gated Addresses have opened up address liquidity, potential users demand more.
- OTC transactions of on-chain interests and assets that are not transferable: For example, assets like veCRV from the Curve protocol or NFT whitelist qualifications attached to addresses can be transferred by simply transferring addresses.
- Temporary address escrow: temporary entrustment of others to manage your address. This includes automatic investment, P2E Gamefi and so on. Once the escrow period ends, control over the address can be returned to NFT and the interaction record may be continued.
- One of the hottest collectibles is addresses. Jay-Z and Stephen Curry used their auction addresses to sell off addresses.
- On-chain basic services: If users need to occasionally interact with protocols using a lot of addresses, they can rent out or purchase the addresses with gasoline in bulk. This eliminates the costly and tedious task of shifting small assets.
A3S Protocol allows for the capitalization, and also offers value transfer possibilities. As with domain names addresses could become the subject of collectibles or leases. Or, they can even be a new on-chain service. At the same time, the “restrictions” and “privileges” for addresses will therefore no longer be exclusive. A3S may launch their product but it has yet not been launched. If the design can be executed, however, it could become the No. SBT and NFT are the public enemies of anti-Sybil attacks, A3S, Sybil, and Sybil.
Conclusion
Users have a variety of needs when it comes to address management, thanks to the growth of Web 3 as well as the cryptocurrency market. Addresses are not something to be lost or forgotten. How to manage the “first stop” in the crypto journey and uncover more value embedded in addresses will certainly become the focus of more and more projects. The process is constantly evolving as developers design innovative solutions. As we continue to monitor the developments and share our research, we also keep an eye out for updates on address-related projects.