Particle Network - Protocol That Has Always Been [Abstracting] the User Experience in Crypto

Interacting with crypto is often seen as complex, but the concept of "Chain Abstraction" aims to simplify this. Before exploring crypto interactions, let’s look at how we use Web2 applications like Instagram and X. Typically, we create an account with an email address and start using the app. For another Web2 app, we repeat the process by creating a new account with our email.

Two important points in this process are: accounts are specific to each platform and data isn't shared across platforms. To improve this, Single Sign-On (SSO) has become popular. SSO allows users to log into multiple apps with one set of credentials, like using a Google account. This saves time on onboarding and managing authentication.

Now, let’s consider how users interact with crypto. Managing accounts is tricky, as there's no universal "email" for platforms. With many blockchains, it's like needing a different phone number or email for each one, or maybe creating a new one. Also for EVM, it's similar to using the same email address everywhere, but the actual collection of emails you receive and hold is different depending on the app. So, each app has a different inbox. Liquidity also needs manual management across accounts.

This was workable in the early days, but with hundreds of blockchains now, users need a better system, and technology is being ready. There are now projects building infrastructure to solve this under the narrative of “Chain Abstraction.” In this sector, Particle Network has been the leading and consistent project to provide the better solution.

Starting with a social wallet using Web2 social logins, Particle Network now focuses on simplifying multi-chain complexities with their core product, Universal Account Stack (Universal Account, Liquidity, and Gas). In this article, let’s look into the core components when crypto users interact with and what exactly Particle Network is building to provide the “Future of Crypto UX.”

Source: Next Step: Chain Abstraction - Particle Network docs

1. Interaction Components and Layers of Chain Abstraction

User interactions in crypto can be broken down into several components. There have been many attempts to make these interactions more seamless by abstracting some components, with each project building its own abstraction layer. However, previous solutions focused on abstracting only certain parts, which did not result in smooth overall interactions. This is why the recent "Chain Abstraction" narrative has gained momentum, as it aims to make previous efforts more collaborative.

In the previous article “Chain Abstraction - The Final Narrative to Fix the Crypto UX Problem in Hundreds of Blockchains,” I delved into the types of abstractions present in the user interaction process, including Key Management, Gas, Transactions, Bridging, etc. In this section, let's focus more on the core components involved in crypto interactions. These would be:

1. Transaction payload: The transaction payload contains the essential data that specifies the details of a transaction, such as the recipient, amount, and any additional instructions for smart contracts to execute.

2. Signature: A signature is a cryptographic proof that creates and verifies the authenticity and integrity of a transaction, ensuring it was authorized by the owner of the corresponding private key.

3. Crypto Asset - Native token and others: Crypto assets include native tokens, which are the primary currency of a blockchain which is used as a gas token, as well as other digital assets that can be created and managed on the platform for example stablecoin and RWA token.

4. Blockchains - L1 and L2: Blockchains are categorized into L1, which are the foundational networks like Ethereum and Solana, and L2, which are built on top of L1 to enhance scalability and leverage the security of L1.

In this section, let's put more focus on the core technical components involved in the interaction within crypto. It would be crucial to understand how these components work together, and this would provide better understanding of what chain abstraction projects are specifically abstracting.

1.1 On Components in User Interaction

1.1.1 Transaction Payload - Interacting with Dapps

The transaction payload refers to the specific action a user intends to perform on the blockchain. The data is not limited to simple asset transfers but can carry complex data to interact with dapps. These actions can include transferring assets, swapping crypto assets, lending assets, or staking tokens. For example, swapping 1 ETH for 0.03 BTC involves creating a payload that specifies this exchange. The transaction payload is a critical part of the blockchain process, as it defines the user's desired operation and the parameters involved.

1.1.2 Signature

A signature is a cryptographic proof that verifies the authenticity and integrity of a transaction payload. By signing the transaction with their private key, users ensure that the transaction is authorized by the owner of the wallet and the funds. This process employs digital algorithms such as ECDSA, or ring signatures for private transactions, and can utilize methods like Multi-Party Computation (MPC) for enhanced security. Once signed, the payload is sent to the network, where nodes verify the signature before processing the transaction.

1.1.3 Crypto Asset (Gas, Liquidity)

Crypto assets are the digital tokens involved in the transaction. These can be native tokens like ETH in Ethereum, and SUI in Sui, stablecoins pegged to fiat currencies, or RWA tokens.

The transaction process involves paying a gas fee, which is a small amount of native token used to incentivize miners or validators to process the transaction. Once the gas fee is paid, the assets are sent to be swapped, and the transaction is executed on the blockchain.

1.1.4 L1 and L2 Blockchains

Blockchains are the underlying layer that records and processes transactions. They can be categorized into L1 and L2. L1 blockchains are the base networks, like Bitcoin or Ethereum, while L2 solutions are built on top of L1.

Once a transaction is executed, the resulting assets and transaction details are recorded on the blockchain. This ensures transparency and immutability, as all transactions are permanently stored and can be publicly verified.

1.2 Where does Particle Network Position?

Particle Network positions itself as a project in "Chain Abstraction," aiming to simplify user interactions by abstracting processes related to “signatures” and “crypto assets,” where it calls itself is building an “account-level abstraction.” Let’s understand this better with the components in interaction.

Source: Implementing Chain Abstraction: The Multi-Layer Framework

One primary area where Particle Network offers abstraction is digital signatures. Different blockchains each use various digital signature algorithms, which can be cumbersome for users to manage. Particle Network simplifies this by enabling users to sign transactions with a single key, regardless of the blockchain, reducing complexity. Currently, Particle Network only supports EVM-based chains, so the signature is the same across EVM blockchains.

Additionally, Particle Network addresses the challenges of managing crypto assets across different blockchains. Each blockchain may have its own native tokens, complicating liquidity management. By abstracting these processes, Particle Network allows users to seamlessly interact with DEXs and manage their assets without navigating different gas tokens and liquidity pools.

Moreover, Particle Network's abstraction extends to the blockchain layer itself. Through its Universal Accounts Stack, users can interact with any dapp and pay gas fees with any token, unifying the experience across various blockchains. This approach simplifies user interactions and enhances the interoperability and flexibility of blockchain applications.

In the next section, let’s look into what exactly Particle Network is building.

2. Particle Network - What Are They Exactly Building?

2.1 Main Product: The Universal Account Stack Powered by Particle L1

Particle Network is enhancing the crypto experience by introducing the Universal Account Stack, which includes Universal Account and Universal Liquidity. These core functionalities are powered by its L1 blockchain built with Cosmos SDK, designed for a chain-abstracted experience. This L1 blockchain aims to unify the fragmented multi-chain ecosystem behind the scenes, providing users with a simplified experience across different blockchains.

• Universal Account: It is a multi-chain smart account implementation powered by Particle Network’s Universal SDK. They offer a single user address and balance across ecosystems, including blockchains like Ethereum, Ethereum L2s, Bitcoin, Bitcoin L2s, etc.

• Universal Liquidity and Gas: It unifies the liquidity of all chains through optimistic execution of multi-chain atomic transactions, allowing users to interact with new chains without holding tokens on them, and enables users to pay gas or interact with dapps with any token (i.e. PARTI, USDT, or USDC) from any blockchain.

Looking into the foundation of Particle Network's Universal Account Stack, its L1 blockchain handles everything behind the scenes. The architecture is designed to unify user accounts across Web3 by integrating all chains at the account level. Utilizing the Cosmos SDK, it offers an EVM execution environment with Berachain’s BeaconKit.

The architecture has three main components: the Master Keystore Hub, Decentralized Messaging Network (DMN), and Decentralized Bundler. The Master Keystore Hub coordinates smart contract deployments across networks, ensuring state parity. The DMN monitors UserOperations on external chains and settles execution status on the L1. The Decentralized Bundler manages high-volume, cross-chain UserOperations, promoting decentralization and reducing the potential for censorship.

It also has enhanced security measures with its dual staking system. By combining $PARTI and BTC through Babylon, security is improved by requiring consensus from both staking groups for transaction validation. Additionally, an Aggregated Data Availability model using providers like Celestia, Avail, and NEAR DA enhances data reliability and reduces risks.

2.1.1 Universal Account

These accounts provide a single user address and balance that can be used across different ecosystems. By leveraging Particle’s Universal Liquidity, Universal Accounts can seamlessly route and execute atomic cross-chain transactions, consolidating token balances from multiple chains into a single interface. This allows users to visualize and use their assets as a single balance, simplifying the user experience and promoting widespread crypto adoption.

Source: Universal Accounts - Particle Network docs

2.1.2 Universal Liquidity and Gas

Universal Liquidity unifies the liquidity of all chains through the optimistic execution of multi-chain atomic transactions. This approach allows users to interact with new chains without needing to hold tokens on them. Universal Liquidity pools funds from a user's balance across different chains, enabling seamless cross-chain transactions and interactions with dapps on any chain.

“Universal Gas” ****is also a key component alongside Universal Liquidity. It enables users to pay transaction fees using any token, irrespective of the blockchain they are using. For example, users can settle fees on a network like Bitcoin L2 with a token such as USDC from a different network like Arbitrum. Typically, transactions require fees to be paid in the network's native token, but Universal Gas offers the flexibility of cross-chain fee payments behind the scene. This is made possible through Particle Network's Universal Accounts and Paymaster system, which automatically converts the selected token into the native token to complete transactions on the network. This abstraction streamlines the user experience by eliminating the need to manage multiple token types across different blockchains.

Source: Universal Gas - Particle Network docs

2.2 Sub Products: Make Experience Better and Better

2.2.1 BTC Connect - Solving Experience in Bitcoin

Particle Network enables account abstraction in the Bitcoin ecosystem by bringing ERC-4337 natively to Bitcoin L2s. Thanks to it, users can enjoy all the UX benefits of AA on Bitcoin without the need for secondary interfaces (such as a Rainbow wallet). This enables them to control a smart account on an EVM-compatible Bitcoin L2 with a "regular" Bitcoin Wallet (such as UniSat, Bitget, TokenPocket, etc.) as its Signer.

By implementing BTC Connect, developers can offer their users all of the benefits of account abstraction within Bitcoin L2 chains, including account programmability, gasless interactions, batched transactions, etc.

Source: BTC Connect: Bitcoin Account & Chain Abstraction for BTC L2s

2.2.2 Wallet as a Service - Abstracted Wallet in a Single Blockchain

Particle Network's Wallet-as-a-Service (WaaS) is a comprehensive solution designed to simplify the user experience in a single blockchain by integrating social logins, allowing users to create on-chain accounts using familiar platforms like Google and X. The service is built on a modular and customizable framework that supports both Externally Owned Accounts (EOA) and Account Abstraction (AA), enabling developers to embed wallet functionalities directly into their applications. This product has been the core offering of Particle Network for the past years.

Particle Network’s Smart Wallet-as-a-Service (WaaS) is designed for users new to Web3, eliminating the need to manage complex private keys and enabling easy interaction through one interface. It supports multiple blockchain networks like Ethereum, Optimism, and Avalanche, and handles both standard EOA interactions and ERC-4337 smart accounts. With features like gasless transactions and session keys, Particle Network's WaaS simplifies transactions and speeds up the onboarding process.

3. Thought Experiment on How Particle Network Would Work

3.1 Borrowing Through Universal Liquidity

Imagine a user wants to borrow $500 worth of USDC on Ethereum by utilizing their assets distributed across Optimism, Base, and Polygon. Universal Liquidity will facilitate this process through the following steps:

1. Initiate Borrowing Request: The user initiates a borrowing request for $500 USDC on Ethereum using the Particle Network interface.

2. Bundle User Operations: The request consolidates UserOperations from Optimism, Base, Polygon, and Ethereum into a single signature, which is processed by Particle L1.

3. Exchange Assets: Upon signature execution, the assets on Optimism, Base, and Polygon are exchanged for an intermediary token, such as USDT, using the respective chains' DEXs.

4. Aggregate Intermediary Tokens: The USDT from Optimism, Base, and Polygon is sent to a Liquidity Provider on the Particle Network.

5. Release USDC: The LP releases the full USDC amount on Ethereum.

6. Borrowing Completed: The user receives $500 USDC on Ethereum, which can now be utilized as required.

By leveraging Universal Liquidity, users can interact seamlessly with multiple blockchains, enhancing their access to liquidity across different ecosystems.

Source: Universal Accounts: 1000 Chains, One Account

4. The Journey of Particle - Abstraction of [Complexities]

Particle Network has been at the forefront of simplifying user interactions in the crypto space through a series of abstractions. Starting with Wallet Abstraction, the team has progressively built products on Account Abstraction and Chain Abstraction. Each step has been taken to enhance user experience and interoperability across various blockchains. This journey reflects Particle Network’s commitment to making the crypto experience more accessible and user-friendly. Let’s walk through their journey.

4.1 Abstraction of Wallet - Social Login

The journey of Particle Network began with the abstraction of wallets, focusing on simplifying the onboarding process for users. Traditional Web3 wallets require users to manage private keys and navigate complex setup processes, which can be a significant barrier to entry. Particle Network addressed this issue by integrating social logins, allowing users to create and access their wallets using familiar platforms such as Google or X (formerly Twitter).

By providing Wallet Abstraction SDKs, Particle Network enabled developers to offer a seamless onboarding experience. Users could start interacting with dapps with just a few clicks, bypassing the cumbersome steps traditionally associated with wallet creation and management.

4.2 Abstraction of Account - Smart Account

Following the success of Wallet Abstraction, Particle Network introduced Account Abstraction through the concept of Smart Accounts. These accounts were designed to offer advanced features that enhanced the user experience. One of the key developments is the support for gasless transactions, which allowed users to interact with the blockchain without needing to hold native tokens for transaction fees. This is complemented by session keys, which enable temporary access permissions to remove the process for users to manually sign transactions, and social recovery mechanisms that allow users to recover their accounts through trusted social contacts.

Developers could utilize Particle Network's full-stack Account Abstraction SDK to implement these smart accounts, enabling functionalities such as batch transactions and the ability to pay gas fees using any ERC-20 token.

Source: Overview - Particle Network docs

4.3 Abstraction of Multichain - Universal Account Stack

The latest and most ambitious milestone in Particle Network's journey is Chain Abstraction, achieved through the concept of the Universal Account Stack: Universal Account and Universal Liquidity. Universal Accounts allows users to maintain a single account and balance across multiple blockchains, effectively eliminating the fragmentation of assets and liquidity that typically plagues the blockchain ecosystem. This means users can seamlessly interact with different blockchains without the need to manage separate accounts or transfer assets between chains.

Universal Liquidity ensures that funds can be pooled and utilized across different chains seamlessly, providing a more efficient and flexible financial environment. This is particularly beneficial for users, where assets are often fragmented across multiple platforms and chains. Universal Gas further simplifies the user experience by allowing users to pay transaction fees with any token, from any chain removing the need to hold native tokens of each blockchain. This comprehensive approach to chain abstraction is set to change the user experience, making it intuitive and straightforward.

Source: Particle Network

5. Looking Ahead - Its Mainnet

Experience in crypto is set to change dramatically. Projects in the Chain Abstraction landscape are competitive but collaborative. However, assessing the current status objectively, all projects are still in the development phase and not yet at the production level. Some projects may rely on certain entities for security and must deal with the liquidity to perform actions on other blockchains. There are many hurdles for the actual implementation.

This is why Particle Network is worth looking into; it could be one of the first projects to enter production. It might showcase next-level user experience or reveal the limitations of chain abstraction projects. Additionally, other projects are building similar products, such as Near’s Chain Signature, One Balance, and Socket Protocol’s Magic Spend++. As more of these projects enter production, competition could get fierce, and the target customers may vary.

Particle Network has been working to implement "Abstraction" at different levels, from Wallet Abstraction and Account Abstraction to Chain Abstraction. Each step has been taken to solve existing blockchain issues and make decentralized applications easier for everyday users. The upcoming mainnet launch will be an important test of their progress.

Source: Introduction - Particle Network docs