 I'm Ivo and I'm the founder and CEO of Ambier Wallet And I'm going to tell you about the future of Ethereum wallets and Ethereum UX And two technologies are at the core of this and that's smart contract wallets kind of also known as account obstructions and MPC otherwise known as multi-party computation And sometimes referred to as threshold signatures in this case The question is can self custody be the future for the next billion users? How can we onboard the next billion users? And there is a big myth in the space that most people are not ready for self custody But the actual reality is that most self custodial wallets are not ready for the users not the other way around And I'm guessing can I get the show of hands who saw the account obstruction panel yesterday with Vitalik cool. Yeah, so you all know that seed phrases are absolutely terrible and they're an absolutely terrible way of Baking up your private key and we have so many problems in the industry with compromised keys Software wallets being vulnerable to malware and to come to supply chain attacks Which is quite scary like a single npm library can like completely wreck your wallet security And of course, you know, we have social engineering attacks like for example with board dapes and generally all of those things can be solved by multi-factor authentication and on on the chain we call this multi six and Why are multi six kind of a silver bullet? So first of all by having multiple keys Or you you can think of it as multiple shards of a single private key, but it's actually multiple keys You can actually onboard users without making them write down a seed And without worrying that they would lose access to their account So basically a simple example would be to have a key on your laptop and on your phone You can also recover your account with methods like social recovery that urgent pioneered But there's also other ways of recovery. You can also generally do multi-factor authentication Which is way more secure and prevents you from malware and of course you have resistance to hacks and compromised keys For example, we have malware on one of the devices. You will not be that vulnerable so There are two ways to achieve a multi-seg on on an EVM chain one of them is Smart contract wallets and a lot of you have heard about account obstructions and account obstructions are basically a way To pave the way forward for smart contract wallets, but I prefer to call this like smart smart contract wallets I prefer to call all of these technologies smart contract wallets or smart wallets for short And this is basically where each account is a smart contract which allows for any custom execution logic Including multi six of course and then NPC refers to multi-party computation and in the context of wallets It means that it allows you to have like threshold signatures So you can sign by the signature could be by multiple parties or you can do an out of M so like two out of three and Let's start by boosting some myths about smart wallets So one of them is that smart wallets cannot sign messages And I'm sure that many of you have heard that but the reality is that smart wallets can sign messages just fine You just need a bit of custom logic for verification Which is a p1271 Then another one is that smart wallets and I've heard that in the past that they produce different address for each chain So it's kind of tough to use But that's not really true because you have created to now and you can create accounts counter factually The same address on all EVM chains Again, it was mentioned in the panel and then the other one is the gas overhead Gas overhead still exists, but it's gotten a lot less in the last years again. Thanks to Thanks to proxies minimal proxies And thanks to counterfactual deployment Unlike MPC smart wallets can do many more things than just Multi-six they can do time logs. They can do spending limits Again something that was fantastically covered on the panel and this also allows for recovery mechanisms like social recovery and For example, seedless onboarding Like we have on a buyer wallet just with an email and a password while not compromising the non-custodial nature of the wallet It's also mutable Which means that you can change the authentication scheme like you can start with with a seedless onboarding account Where you have an email and a password and then as you become more versed in crypto You can upgrade this to a treasurer or a ledger and you can You can set the treasurer and the ledger to be like the sole owner of the account without changing the address Without having to move funds, which is amazing Then you have gas obstructions which allows which allow you to pay for transactions in stable coins So like if you're a new user onboarding on crypto to crypto You can sign up with an email and a password then fund your account with an onrump And then you would receive us dt and you would be able to swap that for example for it or without having it or for gas And of course you can batch transactions so do multiple things in one transaction again A fantastic example from Argent was the NFT shopping cart But a simple example would be on uniswap when you have an approval the approval would get batched together with with the transaction So you wouldn't have to do it separately and there are more exotic use cases like for example a custom Cryptography like enabling the NIST curve, which would allow using iOS biometrics and web authentication And there are of course some drawbacks of smart wallets and some adoption challenges like you have gas overhead As mentioned previously, it's not so much as people think You just have around one to two thousand gas per transaction And around forty thousand gas for deployment, which is added to your first transaction But the main challenge is Dapp adoption so a lot of dApps either block smart contracts intentionally because they believe that that's not a wallet And it's a some sort of automation That's basically with NFT means and the other thing is many dApps just don't implement smart contract signing But this is quite easy to fix So when would you want to use MPC wallets? So one of the benefits of MPC wallets is off-chain recovery, which is cheaper and easier but not as flexible Then the other thing is they're truly cross-chain, so there's no dependence on smart contracts So for example, you can support Bitcoin or you can support basically any chain that uses elliptic curve signatures There's no gas overhead and there's no Kind of drama with the signatures like signatures just work with any dApp But there are some problems with MPC and one of those is that they require custom cryptography And there are not that many libraries so far and they're not that Well battle tested as normal elliptic curve signature libraries and it's kind of an experimental technology But then the main problem I think is the immutable authentication rules Which basically means that when you create like for example two out of three multi-seg you cannot just swap out one of the Signers you cannot make it like two out of four or you cannot make it like a three out of four It's just immutable once you created that's it which also creates some problems with recovery, right? So you can recover the account once, but then you can change one of the keys so like if you lost the key then it's kind of bad and It's also limited to multi six you don't have time locks So that a lot that limits you a lot as well There's no gas obstructions but that's not in the slide because it's more of a benefit of smart contract wallets and Finally the also a very big thing you cannot use it with a hardware wallet at least not before those hardware wallets implement that of course you can argue that you can pull requests to those hardware wallets, but at the moment you can't and As a conclusion I would say that smart contracts and account obstructions are the way to go That's the future proof way of doing accounts on Ethereum and on other EVM chains on layer tools and etc But multi-party computation can be fantastic for like some temporary use cases before dApps kind of get their stuff together But yeah, definitely smart contract wallets are Way better for the future. So that's it So what are the critiques for the smart contract wallets right now is that in the end? You still need a wallet with a private key to manage it Yeah, yeah, both on thousand multi six So how did I mean any any ideas of how to overcome it? Well, that's completely true But like on a fundamental level we cannot get away from the secret right in any form of Authentication you have some sort of a secret just the great thing about smart contract wallets is that you can manage it And you can make it work not like as a single private key Which is like the source of all authentication and like the one true point of authentication But you can have multiple of those secrets like a regular Like like you have one for example on Google or on Facebook or on the regular like human friendly Authentication scheme so it is a private key But you shouldn't think of it as a private key because you away wallets in there The private key is King is like the single secret number where everything comes from unlike smart contract wallets