The following is a guest post by Lukas Schor, Co-Founder of Safe.
2024 has been a pivotal year for DeFi. Practical applications for smart accounts are already in use. Major infrastructure milestones like chain abstraction, along with positive market sentiment and consistent growth, will enable a return to fundamentals in the coming year. This means products that bring real value to users that truly revolutionize the digital world. Here are some of the developments to expect in 2025:
1. At least 20% of Ethereum users will rely on EIP-7702-enabled smart accounts
In just the first quarter of 2024, private key compromises cost the industry over $239 million in losses. Smart accounts promise to unlock a safe, more customizable user experience, but widespread adoption requires a full overhaul of existing DeFi infrastructure. Following the launch of the ERC-4337 standard in March 2023, smart account adoption was relatively slow. While it has ramped up in 2024, smart accounts are by no means ubiquitous.
Ethereum’s upcoming Pectra upgrade, scheduled for 2025, includes EIP-7702, a new standard that will allow Externally Owned Accounts (EOAs) to execute smart contract code directly from their addresses, giving EOAs some of the functionality of smart accounts. With this standard, the private key retains full control over the account, posing a security risk and limiting account recovery. Still, EIP-7702 will play a vital role in the transitionary period as the industry continues to build smart account infrastructure.
User demand for greater accessibility, security, and efficiency will drive adoption, which is why we’re anticipating at least 20% of Ethereum users will have moved to EIP-7702-enabled smart accounts in 2025.
2. Half of all DeFi users will navigate multiple blockchains from a single unified interface
If we are going to see mainstream adoption in the next five years, we need to abstract blockchain technology from user experience. Smart accounts are the ideal foundation for chain abstraction. Due to their programmable nature, smart accounts can embed chain abstraction directly into users’ accounts, freeing them from infrastructure overload.
Safe is actively working on a solution to this. With Safenet, which will launch this year. We envision an account where users can view all your assets, no matter what chain they originate from, all at once, completing multichain transactions easily. Already, Safe accounts are a pillar of DeFi, storing ~7.6% of all…
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