Breaking Down Chain Abstraction

Blockchain network design continues to scale year after year and has advanced significantly since Bitcoin’s whitepaper was published in 2008. Seven years later, Ethereum launched with the introduction of its novel smart contracts, which slowly laid the foundation for the blockchain networks of today. Ethereum set the stage for a rapid evolution within crypto, enabling NFTs and DeFi, which began to take shape in 2020. Ethereum’s success led to the birth of other Layer 1 networks, all with their own native infrastructure, as well as Ethereum scaling solutions (Layer 2s) such as Arbitrum, Optimism, and ZkSync.

The User Experience Dilemma

For blockchain technology to achieve large-scale adoption across diverse use cases — decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming for example—the on-chain user experience remains too complicated and treacherous for new users. Currently, users are forced to operate multiple wallets, each with individual private keys and passwords, and to contend with different native gas fee requirements, across disparate blockchains that have unique dApp ecosystems. A DeFi power user currently needs multiple wallets for EVM networks, Cosmos, and Solana. Each network and wallet requires unique keys, subjects users to more points of failure than necessary, and has different interfaces, creating a massive entry barrier for new DeFi users. Interactions between these chains are fraught with significant challenges and risks. Users must navigate specific bridges, manage different gas tokens, and incur multiple fees, which can quickly add up. The complexity of using multiple dApps to move funds not only complicates the process but also increases exposure to malicious links. As a result, millions have been lost to cross-chain bridge hacks and exploits. This draws attention not just to security vulnerabilities but also the need to simplify the user experience and reduce the operational burdens placed on users.

In Web2, when users open an HTML page, multiple server requests occur in the background, but both the user and the application-level developer are abstracted from this complexity. In DeFi however, these backend processes are exposed, making the complexities apparent to both users and developers.

In addition to the clunky UX and UI discrepancies and security concerns, this structure also contributes to the liquidity fragmentation problem prevalent in DeFi today.

These practices are not “retail-friendly,” as the average new user would expect an experience similar to traditional fintech applications such as PayPal or Venmo, where the technical “heavy lifting” is all taken care of behind the scenes. To bridge this gap and make blockchain technology accessible to a broader audience, a solution is needed that hides the complexities and offers a seamless user experience akin to Web2 applications. This is where chain abstraction comes into play.

What is Chain Abstraction and How Does it Work?

Chain abstraction is a structural design intended to simplify interactions with blockchain technology by abstracting away the complexities inherent in blockchain operations. It enhances user experience not only across different blockchains but also within individual ones, making blockchain technology more accessible and user-friendly. By addressing issues like liquidity fragmentation and lowering barriers to entry, chain abstraction paves the way for broader adoption of blockchain technology.

The chain abstraction tech stack is spearheaded by permissions and abstraction layers, which act as the user’s point of contact. This layer organizes and abstracts all the necessary authentications and integrations needed to make multichain interoperability a possibility.

Chain abstraction removes unnecessary complexities, allowing users to move from "Point A" to "Point B" effortlessly. Instead of signing into multiple wallets, checking transactions across different blockchains, and paying extra fees, users experience a streamlined process that feels intuitive and straightforward.

For example, imagine a user wants to purchase an NFT that's hosted on a different blockchain than the one they currently have assets on. Traditionally, they would need to:

1. Access their wallet on the first blockchain and initiate a transfer to a bridge.
2. Wait for the bridging process to complete, which could involve multiple confirmations and significant time.
3. Switch to a wallet that supports the second blockchain.
4. Claim the transferred assets on the new chain, possibly paying additional gas fees. 5. Navigate to the NFT marketplace and complete the purchase.

With chain abstraction, this process is simplified into a single action:

1. The user selects the NFT they wish to buy and confirms the purchase.

The underlying chain abstraction layer handles all the necessary transactions behind the scenes—bridging assets, managing wallets, and paying fees—without exposing the user to any of these steps. This seamless experience mirrors the simplicity of traditional online shopping, making blockchain interactions accessible to everyone. Through chain abstraction, users can easily swap assets held on an EVM chain, like Arbitrum, onto Polkadot or Cosmos in a safer, easier, and faster manner.

Using on-chain spot trading on Solana as an example, without chain abstraction, an EVM-native user would need to bridge their assets using a third-party service like Wormhole. They would first access Wormhole, connect their Ethereum wallet, and initiate the transfer to Solana. After the assets are bridged, the user must navigate to Jupiter's dApp on Solana, connect a Solana-compatible wallet, and execute the swap. This multi-step process involves managing different wallets and interfaces, incurring additional fees, and exposes the user to potential risks—making it complex and inefficient.

With chain abstraction, the bridging and swapping process appear bundled into a single interface, reducing multiple steps into a single click. Abstracted wallets such as Okto enable this directly within the mobile app’s homepage, making a cross-chain swap as simple as a centralized exchange transaction.

Mobile applications are essential when competing with traditional fintech, offering the convenience users expect. While Web3 mostly exists on the desktop today, its future lies in mobile apps that extend beyond wallets to various decentralized services. The rise in mobile DeFi usage—for example, Phantom wallet reaching the top 10 in the Apple App Store for Solana DeFi—highlights this shift. Mobile platforms are becoming gateways to DeFi, gaming, social networks, and marketplaces, making blockchain technology as accessible as traditional mobile apps and crucial for mainstream adoption.

Adopting abstraction within dApp ecosystems will make DeFi exploration and experimentation a much more realistic and retail-friendly option for users. Once fully implemented, operating and swapping on any chain—whether within the same chain or across different chains and dApps—should be as simple as using any traditional fintech app.

With chain abstraction, users can seamlessly on-ramp from centralized exchanges directly into decentralized applications like Polymarket or Pendle. This enables single-click experiences, eliminating the need to navigate multiple platforms or steps. Such simplicity makes interacting with blockchain services as effortless as using traditional financial apps.

Industry Solutions

The concept of “bridging the gap” within the user experience has become a major focus within the DeFi industry over the last few years, and significant resources and capital have been poured into the mission by teams including Okto, Polygon via its AggLayer, and bridge solutions such as Across

AggLayer, is a blockchain architecture co-developed by Polygon Labs. At its core, the AggLayer combines two components: a common bridge and a Zero-Knowledge (ZK) proof system. This unique combination creates a decentralized protocol that can connect multiple blockchains securely and smoothly.

The AggLayer also serves as a core component of Polygon 2.0, with the goal of bringing a single-chain style interface to the multichain economy.

“Chain abstraction technology is the key to delivering the ultimate goal: simple, one-click experiences that anyone can use, no matter how complex the blockchain tech behind the scenes. This ties directly into the AggLayer's mission of making Web3 fully interoperable—connecting users, liquidity, and assets across all chains” said Marc Boiron, CEO of Polygon Labs.

He continued, “Together, these ideas unlock a future where interacting with DApps, chains, and ecosystems feels effortless for both users and developers. It's about breaking down barriers and making Web3 as intuitive as the internet itself.”

Okto

Okto presents one of the top chain abstracted solutions in DeFi.

Development and DeFi usage on Okto provides the most streamlined experience possible by abstracting the different blockchains it interacts with, user transactions, wallets, data, and liquidity. Okto layer currently supports EVM networks, Solana, Aptos, and Cosmos, with future upgrades planned.

"Even as crypto and blockchain technologies advance with Layer 1 solutions, rollups, and zero-knowledge proofs, mass adoption hinges on user experience. Chain abstraction is the future—it conceals complexity, making blockchain as seamless to use as Web2. Okto and others are leading this shift toward mainstream adoption. Our ultimate goal is to bring one billion users on-chain." — Neeraj Khandelwal, Co-founder of Okto

Features such as wallet abstraction allow for delegated and gasless transactions, as well as social logins, which make the user experience akin to a payment app like Venmo.

As an orchestration layer, Okto uses Multi-Party Computation (MPC) in its Decentralized Wallet Network (DWN) to enhance private key security in users' abstracted accounts. Okto's MPC design prioritizes the user experience and safety without limiting scalability.

MPC is deployed over AVS nodes, distributing key shares across multiple nodes to ensure no single point of failure. By splitting private keys into encrypted parts stored separately, MPC prioritizes user wallet safety. A policy engine further protects clients, even against malicious developers. This setup creates a better user experience through a unified multi-chain interface.

Okto’s Universal Liquidity Layer (ULL) also ensures consistent liquidity across multiple chains. This ensures developers and users don’t face egregious slippage fees or restrictions based on low liquidity environments.

The entire process runs through the Okto App Chain, which can be thought of as a central hub for user activity. The Okto Chain is a roll-up-based app chain that operates as a middleware layer, storing policies and transaction details needed to facilitate multiple transactions across chains efficiently.

The Okto App chain is a modular tech stack built using the Polygon chain development kit (CDK), which offers developers a scalable and customizable arena for dApp building.

To simplify the interface for regular users, Okto’s abstracted wallet is available on major app stores and allows you to view and control your entire multichain portfolio directly within the application itself, without worrying about a singular point of compromise, or latency issues that can be experienced with competitors.

Builders, on the other hand, can utilize Okto’s abstraction capabilities through its software development kit (SDK), which also abstracts other blockchain native development challenges by providing embedded wallets and secure social sign-ons for developers.

The Okto SDK provides developers with a powerful chain abstraction kit, allowing them to streamline the development of consumer applications in a familiar way. This results in user experiences akin to Web2 applications while enhancing overall performance.

Through Okto's close partnership with CoinDCX, DeFi becomes easily accessible to KYC-verified users in India via the CoinDCX centralized exchange. CoinDCX's Web3 mode is built on Okto's SDK, making the on-ramp and off-ramp processes as simple as using any traditional fintech app.

Particle Network

Particle Network emphasizes the potential of chain abstraction by enhancing user experience within the crypto ecosystem. The team states: "Chain abstraction may be one of the most important leaps in user experience we've had since introducing things like embedded wallets years ago. As we continue down this path of introducing more and more blockchains, the ONLY path forward is chain abstraction; allowing you to use applications built wherever without bridging. UX of a single-chain ecosystem with the scalability of multi-chain." By implementing "account-level chain abstraction" through Universal Accounts, Particle Network enables users to maintain a single, unified balance accessible across multiple blockchains without manual bridging.

Agoric

Agoric shares a similar vision. Dean Tribble, CEO of Agoric Systems, states:

"Users want to press a button and accomplish their intent—like buying a ticket and allowing somebody else to use it, joining a subscription platform, or staking their favorite asset to capture yield. With chain abstraction, we enable them to achieve that goal seamlessly, without needing to navigate the complex series of actions, chains, and assets that make it happen under the hood."

Chain abstraction has emerged as a potential pathway to simplifying blockchain interactions, making them more accessible and user-friendly. By bypassing the underlying complexities, chain abstraction makes crypto more approachable to the everyday tech user.