3 Key Benefits of ERC-4337: Why Developers Should Care

erc 4337 benefits

Are you tired of sifting through countless Ethereum proposals and standards to find the one that actually makes a difference? Look no further than Ethereum standard ERC-4337. This revolutionary protocol provides developers with a range of benefits that can take your blockchain development to the next level. In this article, we’ll discuss the three main benefits of ERC-4337 for developers and why you should care.


ERC-4337 is an Ethereum standard that implements account abstraction for traditional EOA wallets, which transforms them into smart contract wallets. Essentially, it aims to improve the functionality, security, and user experience of wallets within the Ethereum ecosystem. This standard is essential for developers who not only want to create reliable, secure, and user-friendly wallets, but also other dApps for their users. For a more in-depth introduction to ERC-4337, check out this helpful article. Now let’s dive into the benefits of ERC-4337!

Benefit 1: Better functionality

ERC-4337 provides upgraded functionality and ample space for developers to get creative with wallet designs. Here’s how:

Flexible programmable layer

The deployment of ERC-4337 introduces smart accounts with a highly flexible programmable layer that replaces the fixed requirements of EOAs. This flexible programmable layer is enabled by two services: 1) bundlers and relayers and 2) paymasters. Bundlers and relayers support successful on-chain transactions, whereas bundlers batch together user operations. On the other hand, paymasters essentially subsidize a user’s gas fees via sponsorship or enable users to pay using non-native tokens.

Improved scalability

Standardization (e.g. ERC-4337’s compatibility with any blockchain using EVM) also leads to improved scalability, which enables the development of more complex applications and transaction processing across different networks that can meet the needs of high-demand dApps.

Easier integration with existing platforms

ERC-4337 is designed to be compatible with other Ethereum standards, such as ERC-20 and ERC-721, essentially creating a unified interface. This makes it substantially easier for developers to integrate their wallets with existing platforms and services in the EVM ecosystem. The compatibility also allows wallets to work with a wide range of tokens, further enhancing their functionality.

Benefit 2: Enhanced security and privacy

ERC-4337 augments security for smart contracts and reduces the risk of attack and loss of funds in wallets. Here’s how:

Reduced risk of loss of funds in wallets

ERC-4337 significantly reduces the risk of attack and loss of funds in wallets. Before the ERC-4337 standard was deployed, access to an on-chain account would be lost forever without a password or seed phrase–until now. 

ERC-4337 enables social recovery options, which is groundbreaking for the Ethereum ecosystem. The standard allows users to have a group of trusted friends or family (guardians) who can assist in recovering your account by signing a recovery transaction through a multi-sig wallet. Additionally, key management enables users to store their private keys locally, in for example, a smartphone’s security module, reducing reliance on custodial devices or services to access funds. This improves overall security measures, which can lead to wider adoption. 

Ultimately, wider adoption makes working on ERC-4337 more worth it for developers because there will be more projects to work on and a chance to make a larger impact on the ecosystem.

Strengthened security for smart contracts

In addition to social recovery, ERC-4337 also includes another innovative security feature that makes it more secure than traditional wallets. For instance, similar to authentication services in Web 2.0 apps, ERC-4337 supports 2FA authentication to unlock wallets and sign transactions. This feature ensures that only the owner of the wallet can access the funds, improving the overall security of smart contract wallets. Therefore, through the use of guardians and different authentication mechanisms, developers can create a more secure environment, leading to wider adoption. 

Benefit 3: Optimized user experience

ERC-4337 enhances user experience for wallets. Here’s how:

Bundling transactions and execution of multiple transactions

ERC-4337 enables the bundling of multiple transactions into a single transaction. For instance, through bundling, you are able to simultaneously create a transaction, get it approved, and execute the transaction. This might be useful for developers working on dApps like video games because users will often face situations where they have to create, sign, and execute multiple transactions.*/

Gasless transactions

Although gasless transactions are already possible due to meta-transactions, ERC-4337 enables better functionality in the form of a flexible programmable layer like the introduction of paymasters. Paymasters enable users to make gasless transactions by allowing them to pay using different ERC-20 tokens, which can be swapped for ETH. Compared to normal transactions, this ultimately will improve accessibility and user experience, which should lead to more widespread adoption of the Ethereum ecosystem.


ERC-4337 is an essential standard for developers who want to create secure and reliable wallets for their users. There are many useful benefits of ERC-4337, including better functionality, enhanced security and privacy, and improved user experience, for developers who want to enter the Ethereum ecosystem. 

As the Ethereum ecosystem continues to grow, ERC-4337 will contribute to the wider adoption of the EVM because it not only makes it easier for developers to create wallets with scalability and flexibility that work seamlessly with other Ethereum-based dApps and services, but also lowers the barriers of entry for developers.

The future implications of ERC-4337 are vast, with potential implications for all industries that rely on secure, transparent, and decentralized technologies. As such, we encourage developers to explore ERC-4337 and start incorporating it into their projects. To get started with ERC-4337, developers can sign up for OpenBlocto, the starting ground for AA SDKs. Click here to sign up!