The new ERC-4337 update proposal has been announced by Vitalik Buterin. The Ethereum developer has discussed the new features that will be introduced with the update and the possibilities that the new ERC brings to the network.
The most important update for the Ethereum network will be Account Abstraction, which has been awaited by both the developer and user communities. The update adds new verification logic for individual users’ wallets. It creates new functions for wallet developers, which will now be able to implement futures like multiple signatures, social recovery and new signature algorithms.
The aforementioned functions are already present in the modern wallet, but in order to use them, developers have to use additional transactions and spend excessive amounts of gas. Users have to hold some ETH on an external account or use relay systems that usually work in a centralized manner.