Gas Abstraction Explained

Let’s be honest for a minute: gas fees are still one of the biggest hurdles in Web3 today. New users and seasoned degens alike have struggled with gas fee fluctuations and the need to hold the network’s native token (in addition to your other assets) in order to perform any actions, just to name a few.

This is slowly changing, though, thanks to a powerful concept known as gas abstraction. At Ambire Wallet, we believe that gas abstraction has the potential to help onboard more people to crypto, and to make the experience for existing users much smoother, much more predictable, and much less confusing and frustrating. In this article, we will break down what gas abstraction on Ethereum is, why it is important, and how it can be put into practice.

What is gas abstraction?

Simply put, gas abstraction removes the complexity of gas fees from the end user. Instead of having to hold a network’s native gas token in addition to your assets of choice, you can interact with a blockchain in one single currency, pay for gas in stablecoins, or skip fees altogether. End users should not have to worry about how transactions are funded behind the scenes.

Let’s look back at Ethereum’s evolution and what a major milestone gas abstraction has been. It all started with users relying on Externally Owned Accounts (EOAs) that required ETH for gas, you couldn’t do more than one transaction at a time, relied on a private key or a seed phrase, etc. Then came smart accounts, powered by account abstraction - programmable wallets that enabled new flexibility but came with their set of challenges (a new wallet address, not as widely accepted as EOAs, etc).

We can say that now we have found the the golden mean: the most recent Ethereum Upgrade, Pectra, brought us smarter EOAs - this means you can continue using the account you’re used to without having to move funds, keep the same address, batch multiple transactions into one, and most importantly: pay for gas crosschain, use stablecoins, other ERC-20 tokens or have your gas sponsored by a project e.g. and not pay yourself at all.

Of course, none of this would have been possible without account abstraction paving the way. It was always the intention for smart accounts to be native to Ethereum, even though it didn’t happen quite as fast as expected, and not fully. But ERC-4337 and EIP-7702 did bring major improvements to the status quo and to the user experience, allowing gas abstraction to no longer be just a term but a reality, too.

Benefits of gas abstraction

Gas abstraction brings many benefits to the end users. We’ve already mentioned them briefly, but let’s expand a bit on what gas abstraction brings to the table:

Non-native token payments

We’re all familiar with the EOA setup. If you want to transact on a chain, you need to have that chain’s native gas token in addition to the assets you want to transact with. You want to use another chain? Here we go all over again.

For example, on any Ethereum-based app, the user needs ETH to pay for gas, even if the app itself uses a different token (like USDC). This forces users to go through extra steps: buying ETH and transferring it to their wallet, often incurring more fees and unnecessarily complicating everything.

Gas abstraction, enabled by relayers, ERC-4337, and EIP-7702, allows you to pay for gas in stablecoins or other tokens. This means that if you want to send 100 USDC to a friend on Ethereum, you no longer have to also hold ETH, but you can pay for gas in USDC.

Ambire has pioneered gas abstraction with its unique “Gas Tank” feature. Think of it as a separate account within your wallet that is used to pay for gas. Currently, you can top it up with approximately 100 different tokens on major chains and then use it on whichever chain you like. The balance is consolidated in USDC, so you can easily see how much funds you have in it.

App- and wallet-sponsored gas

But paying with stables and other tokens isn’t all. What if you didn’t have to pay at all?

For example, a DeFi app can offer new users a few free transactions to explore the platform without cost. This way, you don’t have to worry about having the native token or any additional funds for gas fees.

For example, Ambire Rewards sponsors gas fees on Gnosis Chain for users of the Ambire Wallet browser extension:

Another great example is RevokeCash, which is sponsoring the gas for one batch revoke per week this summer, combining both transaction batching, as well as gas abstraction, all thanks to EIP-7702:

It can be confusing and intimidating for new users needing a separate token (like ETH on Ethereum) to perform basic actions, such as sending tokens, minting NFTs, or interacting with decentralized applications. This is exactly where gas abstraction comes in and solves this problem by removing the need for users to manage or even understand gas fees, resulting in a much smoother onboarding experience, increased stickiness of a wallet or an app, and improved engagement.

EIP-7702: Bringing gas abstraction to all Ethereum accounts

Recent developments in the Ethereum ecosystem pave the way for account abstraction for all accounts, not just smart accounts. This is a major game-changer for user experience, developer flexibility, and wallet design. But what does it really mean? Let’s break it down.

Why is EIP-7702 so important?

Despite all progress and developments, Ethereum can still be frustrating and confusing, especially for new users. This creates friction and is a reason why adoption is stalling. Being able to pay for gas with any token means a smoother onboarding experience and a less steep learning curve for new users. It also opens the door for innovative models, like dApps or wallets covering users' gas fees, or integrating sponsorship systems seamlessly.

The best part: experienced users and degens can benefit from it, too! Because EIP-7702 works with existing accounts and doesn’t require users to switch to a full smart contract wallet, it offers an easy upgrade path for existing wallets. So, you can get a better UX without having to migrate your funds or change wallet providers.

Ambire Wallet is leading the way

Ambire Wallet has championed smart wallet features since day one, implementing features and concepts that EIP-7702 now brings to the wider Ethereum ecosystem. Since the very beginning, Ambire has offered gas abstraction, allowing users to pay fees in stablecoins, supported by its own smart contract infrastructure.

Ambire was also the first wallet to implement EIP-7702 straight at the launch of the Pectra upgrade, and continues to do so as L2s integrate it. As the Ethereum community embraces EIP-7702, Ambire stands out as an example that anticipated the shift to smarter accounts and built a wallet ecosystem around these advanced capabilities. While EIP-7702 will make it easier for all wallets to adopt gas abstraction, the Ambire extension has already tried and tested it. It has a mature product with intuitive features like the "Gas Tank" we mentioned earlier.

Gas abstraction solves a real pain point in Web3. It removes the complexity of gas fees and enables seamless interactions without needing native tokens. It’s more than just a UX improvement; it really is a foundational layer for advancing the adoption of new crypto users.

We at Ambire Wallet are working hard to make this vision a reality, with our innovative "Gas Tank" and gas sponsorship already simplifying user experience today, as well as smarter EOAs powered by EIP-7702.

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