All You Need to Know about Abstract Chain

Who remembers how Pudgy Penguins took the crypto market by storm? Only a few Web3 brands have made such an entry, and it was one for the community.

On the back of this astounding success, Pudgy’s creators returned to the labs to create a first-of-its-kind blockchain, Abstract. Abstract aims to lead the movement for consumer crypto and products that prioritize massive adoption. The run-up to its release was awesome with community involvement and rewards systems in place. Everyone is tuned in to see how well this ecosystem unifier will perform.

In this article, we will explore what Abstract chain is about, why this new blockchain is unique, the problems with today’s blockchain, Abstract chain’s approach, and who’s behind it.
Let’s dive in!

What is an Abstract Chain?

Abstract Chain is a Layer-2 blockchain that leverages Ethereum’s decentralization and zero-knowledge technology’s speed and security to create an ecosystem for consumers. It plays host to powerful and efficient customizable rollups. These rollups enable developers to create a blockchain environment that meets specific needs.

The goal of this chain is to draw more people and brands into crypto. It achieves this aim with an interface that masks technical jargon and helps consumers focus on their target activity — be it DeFi, gaming, NFT, or e-commerce.

With Abstract, blockchain developers can create scalable applications, and users can access an interactive ecosystem. It is a vision for the future, where everyone — even grandma — isn’t missing out on crypto.

The idea behind Abstract Chain

At the core of Abstract Chain is chain abstraction. This concept aims to put together the bits and pieces of today’s blockchains. There are over 1000 blockchains in existence, and navigating through a handful of them is one major barrier to crypto attaining mainstream adoption.

Chain abstraction proposes simplified interaction that addresses fragmentation, equipping developers to build cross-chain applications and giving users unbridled access.

The problem with fragmentation

Fragmentation remains the elephant in the room, and it manifests in different ways. Truly, Web3 is based on an immutable ledger, visible across a network of computers, so one single entity doesn’t store this information. This is decentralization, which has no need for intermediaries. An ecosystem everyone can trust.

However, there is no unity. Each blockchain has unique rules, consensus, and protocols. While this diversity satiates various tastes, fragmentation impacts developers and users negatively.

Near Protocol’s co-founder Illia Polosukhin highlighted this impact in his presentation on why Web3 needs chain abstraction about a year ago. Fragmentation affects the existing market in the following ways:

Single-chain apps limit the addressable market.

The protocols and infrastructure are set in stone for single-chain applications. A DApp that is stuck to one ecosystem shuts out liquidity, users, and developers from other chains.

When a user has assets across multiple chains, the burden of handling various wallets and interfaces becomes overwhelming. This stress prevents potential users from going knee-deep into DApp waters.

Fragmented liquidity, UX, DevEx, and app discovery.

Liquidity pools are isolated on stand-alone blockchains, and this is bad. It affects the overall efficiency of liquidity in trading and decentralized finance. Liquidity providers find themselves at a crossroads on whether to stay on one chain or diversify their offerings.

Developers are not left out. They face challenges getting familiar with APIs and SDKs for different chains. This expansive variety slows development time and hikes maintenance costs.

Finally, some apps lack visibility. Due to fragmentation, certain apps are isolated on their chains, and they get very low user traffic.

Managing dozens of wallets and accounts is unsustainable.

The interaction of multiple chains means more wallets and passphrases. A user dealing with such information overload can get confused, lose track, or make errors. Now, any of these takes the fun out of on-chain interaction, and Web3 loses a user.
The need to keep in touch with so many details pushes an average user to abandon blockchain.

End users want economic opportunities and cool apps

Fragmentation compels developers to choose between deep building on one chain or spreading thin across multiple chains. Replicating the same application with peculiar requirements on separate chains is a Herculean task.

This dilemma puts money-making opportunities like gaming and DeFi to rot in one corner of the blockchain or makes the apps too complex for users.

In the end, users want to make money and do so with colorful, intuitive design. They won’t even realize they are dealing with the blockchain.

The solution to fragmentation

Here comes Chain Abstraction to the rescue. This concept unifies an otherwise fragmented ecosystem for a seamless user experience.

All the users see is an interactive interface. There is no need to worry about which blockchain they are currently using, the amount of gas fees, and what it takes to bridge to another network. These blockchain details are read abstractly by everyone.

In chain abstraction, one wallet or platform can take a user to whatever network they want to be on without using a complicated process or switching networks.

How does Chain Abstraction work?

Chain abstraction works on a complex interweaving of three components. These components come together to piece together blockchain’s fragments. They include:

Abstraction layer

This layer is where developers make the Midas touch. It takes the separate blockchains that sit atop the other blockchains for abstraction. This one meditates between the user DApps and target blockchains.

They are smart contracts equipped to translate the nuances of connected chains and equalize them with user requests. The target blockchain understands the user, who in turn gets a suitable response on their screen.

Messaging protocols

For the abstraction layer to communicate with the underlying blockchain, it needs a channel. A robust one at that. This is the job of messaging protocols.

These protocols send transactions initiated on the abstraction layer securely for appropriate execution on the target blockchain.

Middleware

It takes any inadequacies encountered and smoothens the entire process. The middleware does this through:

1. Relayers: They scour off-chain for fresh transaction requests on the abstraction layer and notify the right blockchain in a timely manner.
2. Verifiers: They check transaction authenticity to improve security and trust in the system.
3. Oracles: They store credible data that inform smart contracts on how to respond. These oracles need to be updated in real-time to keep the smart contracts efficient.

Abstract Chain’s unique approach to promote an engaging user experience

Abstract chain is using these features to ensure that users get the best experience while using the blockchain. They include:

Panoramic Governance

Unlike many chains where engagement and promotion do not reflect on the community, Abstract is changing the narrative. It gives users more chances than one to build on Abstract.

There are also incentives for spreading the gospel of Abstract. This makes the revenue share in the ecosystem enviable because as it grows, the trickle-down effect on value shoots up. Panoramic Governance is one in which everyone is seen. An approach that gives back to the ecosystem and to the community.

Abstract Global Wallet (AGW)

Goodbye to multiple wallets across different networks with varying 12 or 24-word passphrases. By now, you know what it means to mix up an arrangement or misplace one word: kiss the wallet goodbye. Imagine having a delicacy before you but you are unable to eat it. That’s how a lost passphrase feels. Not to mention gas fees. Abstract understands this pain, and this chain embraces AGW with easier but unique security. You can access AGW with facial recognition or fingerprint verification and find your way into a seamless wallet.

Users can sign in with a passkey only and mint an NFT in a few clicks. This ease makes a difference for someone without a strong technical background. Also, developers can employ AGW with their Software Development Kit to create diverse smart contracts for use on Abstract too.

Rewards system

Users can rack up XPs from performing simple and enjoyable tasks, and these points translate into real earnings.

To earn points? You’d have to navigate the spotlight apps in the ecosystem. The more you explore and engage, the more money you earn.

Also, you can collect badges by playing featured games. Abstract assigns these badges to fame milestones, and they do a number on your XPs.

There’s more! Abstract has a streaming section. Just like on YouTube, content creators can post their content on Abstract and enjoy revenue proportional to viewership and engagement growth!

Conclusion

Abstract Chain is changing the game for Ethereum. This layer 2 takes on the users Ethereum would have sacrificed and gives them cross-chain access. An idea that breeds adoption, low gas fees, and improved app development.

In the past years, DApps and platforms have suffered stagnation in liquidity, user traffic, and economic opportunities due to fragmentation.

Chain Abstraction puts together the pieces to give a global wallet, reduced gas fees, all-encompassing governance, and a rewards system for active contributors. This is possible through the key parts of the engine: smart contracts, messaging protocols, and middleware.

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