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EIP-86 Simplified: Transaction Origin and Signature Abstraction

Introduction

Despite being currently inactive, EIP-86 marked a significant turning point in Ethereum’s history. It was introduced to tackle the problem of rigid transaction processing.

What is EIP-86?

EIP-86 brought flexibility to Ethereum, allowing users to create custom “account contracts” for transaction verification. This was a solution to the one-dimensional approach of Ethereum’s earlier system, which lacked adaptability for diverse user needs.

Key Features

  • CREATE2 Opcode: Introduced to streamline contract creation, making deployment predictable and less prone to errors.
  • NULL_SENDER Transactions: Innovated to allow transactions from anonymous sources under certain conditions, addressing the need for more versatile transaction types.

Goals of EIP-86

EIP-86’s goal was to turn every Ethereum account into a contract-based account. This change aimed to solve the problem of limited transaction processing methods, allowing more personalized security setups.

The Parity Hack Connection

The Parity Wallet Hack, where hackers stole a large amount of ETH due to a multisig wallet vulnerability, highlighted the need for EIP-86’s flexible security models. It underscored the importance of versatile and robust security measures in smart contracts.

Applications and Benefits

  • Multisig Wallets: Made simpler by EIP-86, which allows one transaction to carry multiple approvals, solving the problem of cumbersome multisig operations.
  • Ring Signature Mixers: Enhances privacy by making fund tracing difficult, addressing privacy concerns in cryptocurrency transactions.
  • Custom Cryptography: Offers a range of cryptographic methods, solving the limitation of only using ECDSA.

Potential Risks and Security

EIP-86, while innovative, brought risks, especially in smart contract security. The Parity Hack serves as a reminder of these risks. Importantly, delegatecall was a key function in the Parity Hack, which EIP-86 aimed to make safer by allowing more controlled use in custom contracts.

Link to Account Abstraction

EIP-86 was foundational in Ethereum’s evolution towards account abstraction, which aims to enhance user interaction and security. This initiative enabled the creation of contract-based accounts, or Smart Accounts, adding flexibility and user-friendliness to account management. Critical in moving towards a versatile Ethereum ecosystem, it allowed accounts to better meet user needs and improved security features.

Recognized as a pioneering Ethereum Improvement Proposal, EIP-86 proposed a shift from traditional security models.

It advocated for a system enabling users to create contract accounts with customized security mechanisms. Traditionally, account security depended exclusively on ECDSA signatures and a standard nonce scheme.

However, EIP-86 envisioned a scenario where every account could function as a contract, managing gas payments and allowing user-defined signature and nonce schemes. This significant move towards a flexible and user-centric Ethereum network aligned with the broader concept of account abstraction.

Conclusion

EIP-86’s impact on Ethereum’s transaction processing and account security has been significant despite its inactive status due to the meaningful conversations it has sparked within the community.

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