Account abstraction, also known as “smart accounts,” has the potential to onboard a billion users from the Asian region to Web3, according to Laura Shi, the director of strategic initiatives at ConsenSys, an Ethereum software solutions provider. In a conversation with Cointelegraph, Shi highlighted the strong expansion of the Ethereum and Web3 ecosystem in Asia this year. One of the driving factors behind this expansion is the introduction of zero knowledge Ethereum Virtual Machine (zkEVM) rollups and the mass adoption of Optimistic rollups, which are layer-2 scaling solutions for Ethereum.
Shi pointed out that these scaling solutions have led to the improvement of user experience (UX) for the Asian market, including the introduction of Asian language support in decentralized applications (dApps). This, in turn, has contributed to the increased adoption of Ethereum and Web3 technologies in the region. However, Shi believes that the development of account abstraction will play a crucial role in accelerating adoption in Asia.
Account abstraction, proposed by Ethereum co-founder Vitalik Buterin and other developers in September 2021, offers greater programmable functionality and more “bank-like” features compared to a regular crypto wallet. It aims to facilitate the onboarding of billion-level users in Asia-Pacific (APAC) to Web3. Shi emphasized that this development could be a game-changer for the Ethereum ecosystem, enabling the seamless integration of traditional banking services with decentralized finance (DeFi) platforms.
The Chainalysis Global Crypto Adoption Index for 2022 revealed that the top two countries with the highest crypto adoption rates were in Asia: Vietnam and the Philippines. Additionally, Thailand, China, and India also ranked in the top 10, despite anti-crypto sentiments from their respective governments. Shi believes that social gaming and Web3 gaming are driving mass adoption in Asia, with South Korea and China leading the way.
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South Korea’s gaming publishers are actively focusing on Web3 RPG game publishing, aiming to optimize the sustainability of the on-chain economic model. On the other hand, the Chinese-speaking developer ecosystem is primarily focused on onboarding Web2 users to Web3 gaming through the adoption of account abstraction solutions. These gaming use cases heavily rely on zkEVM rollups and the development of account abstraction.
Looking ahead, Shi sees tremendous potential for Web3 social and gaming content in the coming years, powered by zkEVM rollup solutions and account abstraction. These technologies enable gas fee subsidies and social recovery, making them ideal for the development of decentralized gaming platforms and applications. This aligns with the growing interest in Web3 games, which offer unique experiences and opportunities for players to own in-game assets.
While some speculate whether the recent regulatory crackdown in the United States is contributing to the growth of the Ethereum and Web3 ecosystem in Asia, Shi denied any direct correlation between the two. She stated that they have not observed any significant impact of U.S. regulatory dynamics on the Ethereum ecosystem in Asia. It is worth noting that U.S. crypto and Web3 companies have been exploring friendlier jurisdictions in Asia, leading to discussions about the pivot to the region.
Overall, the Ethereum and Web3 ecosystem in Asia is experiencing robust growth, driven by advancements in scaling solutions, language support, and the adoption of account abstraction. With the potential to onboard a billion users, the development of account abstraction is crucial for expanding Web3 adoption in the region. The Asian market, particularly in gaming and social applications, presents significant opportunities for the Ethereum ecosystem to thrive in the coming years.
