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Consumer Protection w/ Account Abstraction

User Experience in blockchain is a critical factor that requires more attention that "ease of use". Its design determines adoption, consumer protection as well as ability to adhere to regulations around compliance.

Account Abstraction is native on D-Chain to provide flexibility for decentralised applications to create user interfaces that can provide the same level of consumer protection as current compliant financial applications.

Principles:

  • SSI driver access control
  • Web2 level Usability
  • Provide financial applications level consumer protection
  • Web3 compatible for natives and exchanges

Account Abstraction on D-Chain​

D-Chain provides a module that interacts seamlessly with smart contracts, see Vectis repository, that allows for extensible and flexible account management.

Extensibility​

Since accounts are programmable, they are extensible by installing "plugins" developed and registered in the chain's account Plugin Registry. This provides user with fine-grained control over their account's behaviour and the ability to provide web2 usability.

The following utilities for accounts are provided by default:

  • key rotation / guardianship
  • hardware signing (webauthn signature verification support)
  • account recovery / suspension

Additionally, fine grain transaction automation can also be achieved, examples of plugins are:

  • transaction automation (e.g. recurring payments, see demo)
  • safe guards against user errors (e.g. transaction limits, pre / post transaction hooks)

Native account experiences and handling​

The transactions signature / authentication method of the smart accounts should be dealt with in the same way as EOA. i.e. it does not require relaying by 'bundlers'.

Compliance without custody​

At the time of writing, there are no regulations covering "self-custody / self-hosted" wallets in the EU / UK.

However, for some jurisdictions, the Crypto Travel Rules require users of regulated entities (such as CEX) to declare that the incoming / outgoing funds are from/to the holder of the accounts.

Other regulations may limit the user of self-custody / self-hosted wallets users in the near future.

D-Chain account abstraction can satisfy the users' legitimate needs of full ownership and control of their own assets by providing a compliant solution without having to rely on centralised custody.

Depending on the smart contract account's authentication method, if webauthn is used, the challenge is presented to a domain, which means that the domain holder that can provide Crypto Travel Rule & real time transaction AML services for the users.