Chain Abstraction - Solving Crypto's Biggest Problem

Key Insights

• The multichain ecosystem has solved scaling but has fragmented liquidity and deteriorated the user experience. Old piecemeal cross-chain solutions have been ineffective at solving these problems.
• Chain abstraction aims to address these problems holistically. Liquidity aggregation at the blockchain level and master accounts at the user level with credibly neutral architecture can help fix fragmentation and improve UX.
• Polygon’s AggLayer is a neutral solution for aggregating liquidity. It creates a unified bridge secured by zk proofs. Chains can opt in while retaining sovereignty over their tech stack. As such, it is one of the most compelling solutions.
• Master wallets allow users to transact across different wallets and blockchains. They utilize multiple elements of cross-chain infrastructure, including intents, bridges, and account abstraction to aggregate balances across wallets, abstract gas, and execute complex instructions for multi-asset swapping and hopping. As such, they’re one of the most compelling solutions for UX improvements.
• If successful, chain abstraction will benefit crypto at large by helping onboard more capital and users. However, the positive impact will be greatest for modular chains and intent infrastructure.

Introduction