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Glossary Term

Account Abstraction

A wallet architecture that turns crypto accounts into programmable smart contracts — enabling recovery options, gas sponsorship and passkey logins.

Account abstraction makes blockchain accounts programmable by implementing wallets as smart contracts rather than simple key pairs. Instead of “lose the key, lose everything,” a smart account can support social recovery, spending limits, session keys for games, transaction batching, and letting an app sponsor your gas fees.

Ethereum’s ERC-4337 standard (2023) brought this without protocol changes, and by 2026 passkey-based smart wallets — sign in with Face ID, no seed phrase shown — are the default onboarding in many consumer apps. It’s arguably the biggest usability upgrade crypto has shipped, though it shifts trust toward the wallet contract’s code quality.

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