This is where CeDeFi, the convergence of centralized and decentralized finance, is playing a growing role, particularly within non-custodial wallets.

Rather than replacing DeFi, CeDeFi is emerging as a complementary layer that helps bridge usability gaps without compromising user sovereignty.

Why CeDeFi Matters

Pure DeFi offers transparency and self-custody, but it can also introduce friction. Fragmented liquidity, complex interfaces, and variable execution outcomes can create barriers, especially for users navigating multiple chains or assets.

Centralized exchanges, on the other hand, offer deep liquidity and simplified execution, but often require users to relinquish custody and manage additional accounts.

CeDeFi combines elements of both models. It allows users to access centralized liquidity and pricing efficiency directly from a non-custodial environment, without transferring control of their assets to an exchange account.

For users, this means fewer steps and reduced operational risk.

For ecosystems, it means broader participation without lowering trust standards.

Non-Custodial Wallets as the Integration Layer

Non-custodial wallets are increasingly becoming the natural home for CeDeFi integrations.

From an architectural perspective, wallets already sit at the intersection of identity, assets, and transaction execution. Adding CeDeFi services within this context allows users to interact with centralized liquidity providers while maintaining self-custody and on-chain transparency.

In wallets such as ONTO Wallet, CeDeFi integrations enable users to:

• Swap or bridge assets across chains without depositing funds into an exchange account
• Retain full control of private keys throughout the transaction flow
• Access multiple liquidity providers through a single interface

The wallet becomes an orchestration layer, rather than a gatekeeper.

Partner Integrations in Practice

ONTO Wallet integrates with established CeDeFi partners to expand exchange options while preserving non-custodial principles.

Services such as Changelly, SimpleSwap, and Exolix provide access to aggregated liquidity and cross-chain execution, allowing users to complete swaps or bridges directly from within the wallet interface.

From an ecosystem perspective, these integrations:

• Reduce friction for users entering or moving within Web3
• Improve price discovery and execution reliability
• Allow wallets to offer flexibility without rebuilding exchange infrastructure

Importantly, these services operate as optional pathways, not mandatory dependencies. Users remain free to choose how and when they engage.

Trust, Control, and Optionality

CeDeFi is sometimes misunderstood as a compromise between decentralization and convenience. In practice, its value depends on how it is implemented.

When integrated into a non-custodial wallet:

• Custody remains with the user
• Execution is transparent
• Identity and compliance requirements can be applied selectively
• Risk is reduced through choice rather than restriction

This model aligns closely with Ontology’s broader approach to Web3 infrastructure, where trust is applied deliberately and proportionally, rather than universally enforced.

Looking Ahead

As Web3 adoption expands, users will continue to demand both autonomy and efficiency. CeDeFi, when embedded thoughtfully within non-custodial wallets, offers a practical path forward.

Rather than forcing users to choose between control and convenience, this approach allows both to coexist.

Ontology will continue supporting infrastructure and identity standards that make these integrations possible, while products like ONTO Wallet demonstrate how they can be delivered in practice.

Why We Built Ontello

Ontello started from a simple belief:

Your conversations, your identity, and your digital actions should belong to you, not to a platform.

In the Ontello Beta, you will see the beginnings of that idea come together:

• A secure, end-to-end encrypted messenger
• A self-sovereign identity powered by ONT ID
• A built-in smart wallet that works with your device’s passkey
• A growing library of AI agents designed for Web3 life

What You Can Do in the Ontello Beta

Below is a practical overview of what works today and how you can try it.

Create Your Ontello Account (With Your ONT ID)

Your Ontello account begins with ONT ID, your decentralized identity.

It acts as your display name and your passport across the Ontello ecosystem.

You can customise your display name later, but your ONT ID is permanent.

Private, Encrypted Chat, Backed by On-Chain Identity

Ontello uses the Matrix protocol to deliver end-to-end encrypted messaging.

Because you sign in with ONT ID, every message is tied to a real, verifiable, self-owned identity.

To start a chat:

• Click + Create Chat
• Search for a contact by ONT ID or Matrix ID
• Begin your conversation, everything is encrypted by default

Your Smart Wallet, Automatically Created and Passkey-Secured

Ontello generates a self-custodial smart wallet automatically when you register.

No seed phrases.

No private key management.

No complexity.

Your wallet is secured by your device’s Passkey, the same authentication you use to unlock your phone. It is safer, easier, and avoids the common pitfalls of manual key storage.

In this beta release, the wallet supports: Ontology EVM (ONT, ONG)

You can send assets to ONT ID, ENS, or standard addresses.

Explore the AI Agent Store

One of Ontello’s early standout features is the AI Agent Store, a curated collection of agents built specifically for Web3 users.

In beta, you can:

• Browse available agents
• Chat with them directly
• Ask questions or perform simple on-chain actions (where supported)

Our Philosophy: Privacy, Identity, and Intelligence Should Belong to You

Ontello is built around a simple vision.

• Identity should be decentralized.
• Communication should be encrypted and interoperable.
• AI should empower individuals, not platforms.

This beta release is a first community step toward that vision.

DID & Web3 Reputation — What Happened in November

• DIF Newsletter #55 Released

The Decentralized Identity Foundation (DIF) published its latest newsletter, exploring how DID and verifiable credential standards are being adapted for AI agents to enhance trust and identity in decentralized systems.

• Privacy and Social Trust in Web3

Bitget reported on UXLINK and ZEC’s collaboration to build compliant privacy and real-world trust networks, advancing Web3 reputation through human-centric systems.

What Ontology Did in November

• Whitepaper Saturday Launch

Initiated a weekly quiz based on Ontology’s whitepaper as part of the #ONTWeeklyChallenge, inviting the community to answer surprise Telegram questions for $ONG rewards and emphasizing deeper understanding over superficial reading.

• Meme Monday Activation

Launched the week’s challenge with a themed meme contest (“When you finally understand how staking works”). Participants submitted original memes tagged #OntonautsMeme and tagged 3 friends for a share of a $100 $ONG prize pool.

• Hodler Tuesday

Participants who held at least 10 $ONT / $ONG and shared proof in Telegram received rewards. The event also encouraged the community to prepare for Discussion Wednesday.

• Wordle Wednesday Event

Hosted a live Wordle-style discussion in Telegram with updated rules requiring reposts, tags, and form submissions to qualify for $ONG rewards.

• Swap Thursday

This week included:

• A minimum $10 token swap challenge via ONTO Wallet with screenshot submissions
• A new educational video on Proof of Stake
• A Privacy Hour Space focused on decentralized identity and Web3
• An announcement for a Community Connect on AI × Crypto

• Game Friday

Held a series of Telegram mini-games testing knowledge and reaction speed, with leaderboard rewards for top performers.

• Community Connect

Hosted multiple live Spaces discussing Web3 × AI × Crypto, and previewed the next Whitepaper Saturday.

• 8th Anniversary Campaign Kick-Off

Two major anniversary initiatives launched:

• Ontology & Me storytelling campaign
• Free Node Setup campaign

November Spaces

• Community Connect: https://x.com/OntologyNetwork/status/1986359985522049448?s=20
• Privacy Space: https://x.com/OntologyNetwork/status/1986458150753501674?s=20
• Community Connect: https://x.com/OntologyNetwork/status/1986359985522049448?s=20
• Privacy Hours: https://x.com/OntologyNetwork/status/1986458150753501674?s=20
• Community Connect: https://x.com/OntologyNetwork/status/1986645858209689845?s=20
• Community Connect: https://x.com/OntologyNetwork/status/1988897265621037193?s=20

What ONTO Wallet Did in November

• Trading Competition Update

Shared ongoing leaderboard updates for the Trading Competition with @SimpleSwap_io, encouraging users to keep trading to win from the 2,170 USDT prize pool (ending November 14).

• OKX DEX Integration

Announced full integration with @okx DEX, enabling ONTO Wallet users to access trending trading pairs directly within the dApp.

• Trading Competition Conclusion

Confirmed the competition’s end, published the winners list, and announced that rewards would be distributed within 7 working days.

• Invite Campaign Launch (8th Anniversary)

Launched a referral campaign offering 20 ONG per successful invite, drawn from a 10,000 ONG pool, running November 21 – December 21.

• Invite Campaign Access Instructions

Shared guidance on accessing the Invite Campaign through:

• Mobile browser
• Discover page banner
• ONTO Profile section

What Orange Did in November

• Rewards Distribution

Announced 20 lucky winners from the @humanode_io campaign on Orange, distributing $400 for bridging Biotoken on Ontology EVM.

• X Space Promotion

Highlighted an upcoming Space hosted by @digikaai on AI Agents, Smart Contracts & The New Digital Workforce.

• OHS Snapshot Announcement

Reminded users that one week remained before the OHS snapshot for Ontology’s 8th anniversary and encouraged minting OHS and reaching the top 10 ranks for a share of $1,000 ONG.

Staking & Statistics

• Total transactions to date: 20,105,312

That’s a Wrap for November!

Stay engaged as we continue shaping the future of Web3 together.

See you in next month’s edition!

Also read

Your Guide to Joining the Ontology Node Campaign

This guide explains how holders can join Round 266 of the node campaign (running November 24 – December 12/13) and get a chance to have their node-setup fees reimbursed (2,500 ONG) if their node ends up among the top 5 by total stake. It outlines the full step-by-step participation process — from preparing 10,000 ONT, installing ONTO Wallet, to registering your node — and gives tips on how to attract delegators and increase your node’s stake.  

8 Years of Trust: Your Ontology Story Begins Here

This celebratory post reflects on eight years of growth, community-building, and infrastructure development in the Ontology ecosystem — from decentralized identity and enterprise adoption to cross-chain integrations. It also introduces the anniversary campaign Ontology Life – Ontology & Me, inviting users to share their personal Ontology journey (first interaction, milestones, favorite moments) to win a share of a 1,000 ONG prize pool. The article paints a big-picture view of where Ontology has come from — and where it’s going. 

During Round 266, we are rewarding community members who step up and create new nodes. Here is everything you need to know.

What Is the Ontology Node Campaign

The Node Campaign is a special event that encourages ONT holders to run their own nodes by removing one of the biggest barriers to entry: the operational setup fee.

Event Summary

Round: 266

Dates: November 24 to December 12/13

Rewards: 2500 ONG set-up fees reimbursed after the round ends

Winners: Top 5 new nodes ranked by Total Stake

If your new node finishes the round in the Top 5 by stake amount, Ontology will refund your node operation fee at the end of the round.

This is a great opportunity to become more involved in the ecosystem while supporting Ontology’s long term health and decentralization.

Why Run a Node

Running a node on Ontology brings several benefits:

1. Earn Staking Rewards

By operating a node, you can attract delegators and earn a portion of the staking rewards generated by your total stake weight.

2. Support Network Stability

More nodes means a more secure and resilient blockchain. Your participation strengthens Ontology for everyone.

3. Strengthen Decentralization

Increasing the number of active nodes reduces concentration and creates a healthier ecosystem.

4. Contribute to Ontology’s Growth

As we expand into messaging, AI marketplaces and gaming, a stronger node ecosystem ensures better performance and reliability for all applications.

How to Participate

To join the campaign, simply create a new Ontology node during Round 266. Only nodes created in this round will be eligible.

The Ontology team has prepared easy-to-follow guides to help you through the entire process.

Step 1: Prepare Your ONT

Make sure you have enough ONT (10,000) to register your node and meet the staking requirements.

Step 2: Download ONTO Wallet

You can run and manage your node directly from ONTO.

Step 3: Follow the Node Creation Guide

We recommend reviewing the full guide before beginning to ensure a smooth setup.

Step 4: Watch the Video Tutorial (Optional)

Prefer a visual walkthrough

Step 5: Launch Your Node During Round 266

Make sure you create your node between Nov 24 and Dec 12/13. Nodes created before or after this period will not qualify.

Step 6: Build Your Stake

The Top 5 nodes with the highest total stake at the end of the round will have their fees reimbursed.

Step 7: Receive Your Fee Reimbursement

After Round 266 ends, the Ontology team will reimburse the fees in ONG directly to the winning node operators.

Tips for Increasing Your Total Stake

If you want to improve your chances of winning:

• Share your node with the community and invite delegators
• Provide clear information about your node name and purpose
• Be active in Telegram groups and social channels
• Maintain transparency and encourage long term staking
• Support your node with your own ONT to increase its weight

A strong, well-communicated node can attract more delegators.

Who Should Join the Campaign

This event is ideal for:

• ONT holders who want to become more active participants
• Community members interested in staking and node economics
• Builders and ecosystem partners who want to support decentralization
• Anyone who wants to learn more about participating in the Ontology network

If you believe in Ontology, running a node is one of the most meaningful ways to contribute.

Join the Network, Strengthen the Ecosystem

The Node Campaign is an opportunity to take your involvement to the next level, help grow our network and access real rewards for doing so.

With fees reimbursed for the Top 5 new nodes, the barrier to entry has never been lower.

Round 266 is your moment to step forward.

Start preparing your node now.

We look forward to welcoming new operators into the Ontology ecosystem.

This three-part series highlights the winning articles from each week of the competition:

• Week 1: What Is Account Abstraction?
• Week 2: What Are Smart Accounts?
• Week 3: How Smart Accounts and Account Abstraction Fit Together

Together, these pieces explain how programmable wallets and decentralized identity are redefining ownership, usability, and trust across Web3.

Read on to discover how our community sees the future of blockchain. Smarter, safer, and built for everyone.

What is Account Abstraction? The Bridge to Web3 Mass Adoption

Article by Proxyma

Imagine trying to send an email but first having to manually configure SMTP servers, manage encryption keys, and pay postage fees in a specific currency you don’t own. This is essentially what Web3 feels like today. Account Abstraction (AA) promises to change that, making blockchain interactions as seamless as using Gmail.

The Current Problem: Web3’s User Experience Crisis

Today’s Ethereum wallets rely on Externally Owned Accounts (EOAs) accounts controlled by a single private key. While groundbreaking for decentralization, EOAs create massive friction:

1. Gas Token Dependency: You must hold ETH to pay fees, even for simple token transfers
2. Single Point of Failure: Lose your seed phrase, lose everything forever
3. Complex Interactions: Each transaction requires manual approval and gas estimation
4. Poor Recovery: No built-in way to recover lost accounts

These limitations explain why Web3 remains challenging for mainstream users. Account Abstraction addresses these pain points by reimagining how accounts work entirely.

What is Account Abstraction?

Account Abstraction transforms user accounts from simple private key wallets into programmable smart contracts. Instead of being bound by EOA limitations, Account Abstraction allows accounts to define custom logic for authentication, fee payment, and transaction execution.

Think of it as upgrading from a flip phone to a smartphone, the core functionality remains, but possibilities expand dramatically.

How Account Abstraction Works

Smart Contract Wallets

Instead of being tied to a private key, Account Abstraction uses a smart contract that acts as your account. This smart contract holds your tokens and assets while containing custom logic for managing the account.

ERC-4337: The Technical Foundation

The primary technical implementation of Account Abstraction comes through EIP-4337, which enables Account Abstraction without changing Ethereum’s core protocol. Here’s the simplified flow:

1. UserOperations: Users create “UserOperations” containing their intended actions like token transfers.
2. Bundlers: Special actors collect UserOperations and submit them in bundles.
3. EntryPoint Contract: A singleton contract that validates and executes operations.
4. Smart Wallets: Execute the actual transactions based on their programmed logic.

An in-depth explanation on the abstraction process can be found on this Proposal.

Paymasters: The Game Changer

Paymasters are entities that can sponsor transaction fees, enabling gasless transactions. A dApp can pay your gas fees, or you can pay in USDC instead of ETH.

Key Benefits of Account Abstraction for Users

Gasless Transactions

• Enables users to pay fees in any token (USDC, DAI, etc.)via paymaster.
• dApps can sponsor your transaction costs.
• No need to hold ETH for every interaction.

Social Recovery

Set up recovery procedures with trusted contacts or services. Lost your keys? Your designated recovery guardians can help restore access, no more permanent fund loss.

Customized Security

• Multi-signature requirements
• Spending limits for large transactions
• Time delays for high-value transfers
• Biometric authentication (Face ID, Touch ID)

Improved User Experience

1. Session Keys: Authorize games to make small purchases automatically.
2. Transaction Bundling: Execute multiple operations in one confirmation.
3. Automated Execution: Set up recurring payments or trading strategies.
4. One-Click Onboarding: Start using Web3 without seed phrases.

Real-World Applications

Gaming: Players authorize a game for micro-transactions within set limits, eliminating constant wallet confirmations while maintaining security.

DeFi: Users set automated strategies like “swap to stablecoins if my portfolio drops 20%” without keeping devices online.

E-commerce: Shoppers pay with any token they own, while merchants receive their preferred currency all sponsored by the platform.

Enterprise: Companies implement multi-department approval workflows for large transactions.

Current Implementation & Tools

1. Coinbase Smart Wallet: Mainstream-friendly onboarding.
2. UniPass: Actively enhancing Account Abstraction capabilities in partnership with Keystone.
3. Biconomy: Developer infrastructure for gasless experiences
4. Alchemy’s Account Kit: Tools for building Account Abstraction-enabled dApps

Layer 2 networks like Polygon and Arbitrum are optimizing specifically for smart contract wallets, making AA transactions faster and cheaper.

The Road Ahead

While ERC-4337 works today, additional proposals could enhance Account Abstraction:

• EIP-3074: Allows existing EOAs to delegate control to smart contracts
• EIP-7702: Proposes native account abstraction at the protocol level

These aren’t competing solutions but complementary approaches that could coexist, providing migration paths for existing users.

Why This Matters for Web3 Adoption

Account Abstraction represents Web3’s evolution from a power-user tool to a mainstream platform. Current barriers preventing mass adoption. Complex key management, mandatory gas tokens, poor recovery options are solved by Account Abstraction.

The infrastructure is maturing rapidly. What took Web2 decades to develop (user-friendly authentication, payment flexibility, account recovery) can now be built into Web3 from the ground up.

Conclusion: The Account Abstraction Revolution

Account Abstraction isn’t just a technical upgrade, it is the bridge between Web3’s technical sophistication and mainstream usability. By making accounts programmable, we unlock user experiences that rival traditional applications while maintaining blockchain’s core benefits: self-custody, transparency, and decentralization.

The question isn’t whether Account Abstraction will succeed, major wallets and dApps are already implementing it. The question is how quickly the entire ecosystem will embrace this paradigm to build truly user-friendly Web3 experiences.

As we move toward blockchain interactions as seamless as using any modern app, Account Abstraction stands as the critical infrastructure making that future possible. Web3’s next billion users won’t need to understand private keys, gas fees, or seed phrases, they’ll just use applications that happen to be decentralized.

How Smart Accounts Are Reinventing The Web3 Wallet

Article by Lahiru890

If you’ve ever used a crypto wallet like MetaMask, you’ve used an externally owned account (EOA). It’s a simple pair of keys: a public address that acts as your identity and a private key that proves you own it. This model is powerful but rigid, putting the entire burden of security and complexity on the user. Lose your seed phrase? Your funds are gone forever. Find transactions confusing? The ecosystem has little flexibility to help.

A new standard is emerging to solve these problems, moving us from rigid key-based wallets to programmable, user-friendly interfaces. The answer is smart accounts.

What is a smart account?

A smart account (or smart wallet) is not controlled by a single private key. Instead, it is a smart contract that acts as your wallet. This shift from a key-based account to a contract-based account is revolutionary because smart contracts are programmable. They can be designed to manage assets and execute transactions based on customizable logic, enabling features that were previously impossible.

This transition is powered by account abstraction (AA), a concept that “abstracts away” the rigid requirements of EOAs, allowing smart contracts to initiate transactions. While the idea isn’t new, it recently gained mainstream traction thanks to a pivotal Ethereum standard: EIP-4337.

EIP-4337 (the game changer)

EIP-4337: Account Abstraction via Entry Point Contract achieved something critical: it brought native smart account capabilities to Ethereum without requiring changes to the core protocol. Instead of a hard fork, it introduced a higher-layer system that operates alongside the main network.

Here’s how it works:

• UserOperations: You don’t send a traditional transaction. Instead, your smart account creates a UserOperation — a structured message that expresses your intent.
• Bundlers: These network participants (such as block builders or validators) collect UserOperation objects, verify their validity, and bundle them into a single transaction.
• Entry Point Contract: A single, standardized smart contract acts as a gatekeeper. It validates and executes these bundled operations according to the rules defined in each user’s smart account.

This system is secure, decentralized, and incredibly flexible.

Other key proposals (EIP-3074 and EIP-7702)

The journey to account abstraction has involved other proposals, each with different approaches.

• EIP-3074: This proposal aimed to allow existing EOAs to delegate control to smart contracts (called invokers). While simpler in some ways, it raised security concerns due to the power given to invoker contracts. It has since been paused.
• EIP-7702: Proposed by Vitalik Buterin, this upgrade would allow an EOA to temporarily grant transaction permissions to a smart contract. It offers a more elegant and secure model than EIP-3074 and may complement — rather than replace — the infrastructure built around EIP-4337.

For now, EIP-4337 is the live standard that developers and wallets are adopting.

Why smart accounts matter

The real value of smart accounts lies in the user experience and security improvements they enable.

• Gas abstraction: Apps can pay transaction fees for their users or allow payment via credit card, removing a major barrier to entry.
• Social recovery: Lose your device? Instead of a single seed phrase, you can assign “guardians” — other devices or trusted contacts — to help you recover access.
• Batch transactions: Perform multiple actions in one click. For example, approve a token and swap it in a single transaction instead of two.
• Session keys: Grant limited permissions to dApps. A game could perform actions on your behalf without being able to withdraw your assets.
• Multi-factor security: Require multiple confirmations for high-value transactions, just like in traditional banking.

The future is programmable

Smart accounts represent a fundamental shift in how we interact with blockchains. They replace the “all-or-nothing” key model with programmable, flexible, and user-focused design. Major wallets like Safe, Argent, and Braavos are already leading the way, and infrastructure from providers like Stackup and Biconomy is making it easier for developers to integrate these features.

We’re moving beyond the era of the seed phrase. The future of Web3 wallets is smart, secure, and designed for everyone.

How Smart Accounts and Account Abstraction Fit Together

Article by Nilmi Sugandhika879

Since the dawn of Ethereum, interacting with blockchains has meant using Externally Owned Accounts (EOAs) – simple wallets controlled by a private key. While functional, EOAs expose serious limitations: lose your key, and you lose your funds. Want features like spending limits, session keys, or social recovery? You’re left with clunky, layered workarounds.

Enter Account Abstraction (AA) and Smart Accounts. Together, these innovations are transforming how users engage with Web3 by merging the flexibility of smart contracts with the usability of traditional wallets. Instead of thinking about wallets as rigid containers of keys, we can now imagine them as programmable, customizable gateways into the blockchain world.

This article explores how Smart Accounts and Account Abstraction fit together, referencing key Ethereum proposals EIP-4337, EIP-3074, and EIP-7702 and why this combination is essential for building the next wave of user-friendly, secure, and innovative blockchain applications.

What is Account Abstraction?

Account Abstraction is the idea of treating all blockchain accounts as programmable entities. Instead of separating EOAs (controlled by private keys) and contract accounts (controlled by code), AA allows accounts themselves to act like smart contracts.

Key benefits of AA include:

• Gas abstraction: Pay transaction fees in tokens other than ETH.
  Programmable security: Add multi sig, time locks, or social recovery.
• Batched transactions: Execute multiple actions in one click.
  Session keys: Grant temporary permissions for games or dApps.
• Upgradability: Evolve wallet logic without replacing accounts.

With AA, wallets evolve from being passive key holders into active smart entities capable of executing logic on behalf of their users.

What are Smart Accounts?

If Account Abstraction is the theory, Smart Accounts are the practice. A Smart Account is simply a blockchain account that operates under the AA model.

Instead of relying on a single private key, a Smart Account:

• Runs customizable logic like a smart contract.
• Supports flexible authentication methods (biometrics, passkeys, hardware modules).
• Allows advanced features such as automatic payments, subscription models, or delegated access.
• Provides recoverability through trusted guardians or social recovery mechanisms.

In short, Smart Accounts are the user-facing manifestation of Account Abstraction. They bring abstract design principles into tangible experiences, making Web3 more accessible for everyday users.

How They Fit Together

Think of Account Abstraction as the architectural blueprint and Smart Accounts as the actual buildings.

AA defines the rules

• It sets the framework for programmable accounts.
• Proposals like EIP-4337 specify how transactions are validated and bundled without relying solely on EOAs.

Smart Accounts implement the rules

• They apply those AA rules to create practical wallets.
• Through smart contracts, they support features like gasless transactions, account recovery, and key rotation.

Together, AA and Smart Accounts replace the outdated key-wallet model with a flexible, modular system where user experience comes first.

The Role of Key EIPs

Ethereum’s progress toward AA and Smart Accounts has been guided by several proposals:

• EIP-4337 (2021):
  Introduced the concept of a “UserOperation” and “bundlers.” This allows smart accounts to function without requiring changes at the consensus layer. It is the backbone of today’s AA-compatible wallets.
• EIP-3074:
  Enables EOAs to delegate control to contracts temporarily, bridging the gap between old wallets and smart accounts.
• EIP-7702 (2024):
  Builds on 3074 but provides a safer and more streamlined way for EOAs to transition into smart accounts. This is critical for onboarding existing users without forcing them to abandon their current wallets.

Together, these proposals ensure that Smart Accounts are not just theoretical they’re backward-compatible, forward-looking, and ready for mainstream adoption.

Why This Matters for Users

For users, the combination of AA and Smart Accounts translates into real-world improvements:

• Safety: Lose your key? No problem recover your wallet using guardians or multi-sig setups.
• Simplicity: Pay fees with stablecoins, batch multiple dApp actions into one transaction, or play a blockchain game without constant wallet prompts.
• Flexibility: Switch security models as your needs change (e.g., from a simple wallet as a beginner to a multi sig or hardware protected wallet as your assets grow).
• Innovation: Developers can build richer applications subscription based dApps, automated DeFi strategies, or Web3-native identity systems.

This shifts the user experience from fear of making mistakes to freedom to explore.

A Fresh Perspective: Smart Accounts as Digital Personas

One way to think creatively about Smart Accounts is to view them not just as wallets, but as digital personas.

Just as you might have different identities in real life personal, professional, or gaming Smart Accounts allow you to manage multiple digital personas:

• A DeFi persona with automated trading strategies.
• A gaming persona with session keys and gasless interactions.
• A professional persona tied to your DAO contributions.

Each persona can run its own logic while remaining linked to your overall identity. This flexibility makes Web3 personalized and intuitive, much like the evolution from simple feature phones to today’s smartphones.

Practical Takeaways for the Community

1. Developers: Start experimenting with Smart Account SDKs built on EIP-4337. Building dApps with native AA support will set you apart in the next wave of adoption.
2. Users: Explore AA wallets like Safe, ZeroDev, or Soul Wallet. Get familiar with recovery options and gas abstraction to see the difference firsthand.
3. Communities: Advocate for dApps that integrate Smart Accounts, since these models reduce onboarding friction for newcomers.

By engaging now, the community can shape how AA and Smart Accounts evolve, ensuring they remain inclusive, secure, and user first.

Conclusion

Smart Accounts and Account Abstraction are not isolated innovations they are two halves of the same revolution. Account Abstraction lays the foundation, while Smart Accounts bring it to life. Together, they unlock a Web3 experience that is safer, simpler, and infinitely more flexible than today’s wallet paradigm.

Just as the smartphone redefined what we expect from communication devices, Smart Accounts will redefine what we expect from blockchain wallets. They are not just tools to hold assets they are programmable, adaptable, and deeply human centric gateways into the decentralized world.

The future of Web3 isn’t just about protocols or assets it’s about empowering people with smarter, safer, and more intuitive digital identities. And that future begins with Smart Accounts powered by Account Abstraction.

Delve Deeper With Ontology

Interested in how Account Abstraction and Smart Wallets are going to change your Web3 experience Learn More: https://ont.io/news/https-ont-io-news-smart-wallets-account-abstraction/

Get started with ONTO Wallet today: onto.app

According to the FTC, Americans reported losing $10 billion to fraud in 2023, with identity theft leading the pack. It’s the modern version of pickpocketing, except instead of stealing your wallet, someone’s stealing your entire digital existence.

What Identity Theft Really Is

At its core, identity theft is someone pretending to be you. In the Web2 world, that usually means taking enough of your personal information to open a loan, drain your bank account, or file taxes in your name. The playbook hasn’t changed much in two decades — but the surface area has exploded.

• Phishing emails dressed up as your bank.
• SIM swaps where a scammer convinces your phone carrier to hand over your number.
• Centralized database hacks that leak millions of identities in one go. (Think Equifax, but it happens almost weekly now.)

The problem is simple: the internet was never built to prove who you are. We’ve been duct-taping passwords, cookies, and secret questions on top of a system that wasn’t designed for trust.

Why It’s Getting Worse

The more services that ask you to hand over your identity, the more places it can be stolen. Every time you sign up for something with your email, birth date, and phone number, that data gets stored in some corporate silo. Hack one of those silos, and the attacker isn’t just inside your account — they’re inside millions of accounts.

And while regulators keep telling companies to do better, the truth is simple: centralized identity systems are always going to be a honeypot for hackers.

The Web3 Shift

This is where things start to get interesting. Web3 isn’t just about trading coins on decentralized exchanges. It’s about rethinking ownership — not just of money, but of identity.

• Decentralized Identity (DID): Instead of hundreds of logins scattered across the web, you carry your identity with you, cryptographically secured, and decide who gets to see what.
• Self-Sovereign Identity (SSI): You’re not “logging in with Google” anymore. You are the login.
• Zero Knowledge Proofs (ZKPs): Imagine proving you’re over 18 without handing over your birthday. That’s not science fiction — that’s ZKPs in action.

In this model, your personal data doesn’t live on some company’s server, waiting to be stolen. It lives with you. And when someone asks for proof — whether it’s your age, your credit score, or your right to vote — you can share only what’s needed, nothing more.

How to Protect Yourself Right Now

Web3 might be the future, but identity theft is still very much a present problem. A few simple steps can dramatically cut your risk:

• Use a password manager and make sure every login is unique.
• Turn on two-factor authentication everywhere (preferably with an authenticator app, not SMS).
• For crypto wallets, stick to hardware wallets and never share private keys.
• Be skeptical of anyone — anyone — who asks you to “verify” sensitive information over email or text.
• Start experimenting with DIDs and self custody solutions. Even dipping your toes in now puts you ahead of the curve.

The Bigger Picture

Identity theft isn’t going away. As long as our data lives in centralized silos, hackers will keep breaking in. What Web3 offers is a chance to redesign the entire system: to make identity something you actually own, instead of something dozens of corporations guard on your behalf.

The promise here isn’t just fewer phishing scams. It’s a future where your identity can’t be stolen in the first place — because it’s finally, truly yours.

Ontology is launching a 3-week community writing bounty to spotlight one of the most important shifts happening in blockchain today: the move from Externally Owned Accounts (EOAs) to Smart Accounts through Account Abstraction.

Why Account Abstraction Matters

Since Ethereum’s earliest days, most users have interacted with blockchains through EOAs, simple wallets controlled by private keys. While effective, this model has severe limitations. If you lose your keys, you lose your assets. Features like multi-sig, social recovery, or spending limits require clunky workarounds.

Account Abstraction (AA) is designed to fix this by allowing accounts themselves to act like smart contracts. Instead of rigid EOAs, we gain programmable accounts that can support features such as:

• Gas abstraction (paying fees in tokens other than ETH)
• Social recovery and key rotation
• Batched transactions
• Session keys for dApps and games
• Flexible security models

The EIPs Behind the Shift

Three Ethereum Improvement Proposals (EIPs) have pushed Account Abstraction forward:

• EIP-4337: Often called “Account Abstraction via Entry Point Contract”, this proposal enables Smart Accounts without changing the Ethereum protocol itself. It introduces a higher-level system of UserOperations, bundlers, and a shared entry point contract. EIP-4337 went live in 2023 and is the foundation for many Smart Account wallets today.
• EIP-3074: This proposal allows EOAs to delegate control to a contract using new opcodes. In practice, this could enable existing wallets to gain Smart Account features without fully migrating. While still debated, it is seen as complementary to EIP-4337.
• EIP-7702: Introduced in 2024, this proposal refines the approach by allowing EOAs to temporarily behave like smart contract accounts during a transaction. It is considered a successor to EIP-3074 and could bridge the gap between today’s EOAs and future Smart Accounts in a more flexible way.

Together, these EIPs open the door to Smart Accounts and Smart Wallets, accounts that feel as intuitive as Web2 logins while retaining the sovereignty of Web3.

Smart Accounts and Smart Wallets

Smart Accounts, sometimes called Smart Wallets, represent the next step in blockchain usability. Instead of juggling seed phrases and worrying about a single point of failure, users can enjoy:

• Built-in recovery via trusted guardians or social circles
• Multi-device access without compromising security
• Automated payments and subscriptions
• Richer integrations with dApps and DAOs

In short, Smart Accounts bring Web2 convenience to Web3 security, a change as big as moving from dial-up internet to broadband.

The Writing Bounty

We want to hear from you, the Ontology community. Over the next three weeks, we will run a writing bounty to gather perspectives, explainers, and insights on this shift.

Schedule & Topics

• Week 1: What is Account Abstraction?
• Week 2: What are Smart Accounts?
• Week 3: How Smart Accounts and Account Abstraction fit together

Rewards

• Prize: $25 in ONG each week
• One winner published weekly on Ontology’s Medium

Judging Criteria

Submissions will be evaluated based on the following factors:

Presentation: Clear formatting, logical flow, and concise language will strengthen the impact of your article. Visuals such as diagrams or charts are welcome but not required.

Clarity: Articles should be easy to read and well-structured, making complex concepts like Account Abstraction, Smart Accounts, and the relevant EIPs understandable for a broad Web3 audience.

Accuracy: Technical details must be correct, especially when referencing Ethereum proposals such as EIP-4337, EIP-3074, and EIP-7702. Sources should be cited where appropriate.

Creativity: We encourage fresh perspectives, original explanations, and engaging writing styles that stand out from generic technical summaries.

Community Value: Articles should offer insights or practical takeaways that help the community learn, debate, or apply Account Abstraction in real contexts.

Relevance: Submissions should align with the weekly topic and stay focused on Account Abstraction, Smart Accounts, and Smart Wallets rather than drifting into unrelated areas.

How to Participate

To join, contact your Head of Community or local Harbinger to be added as a contributor to our Medium publication. Once you have access, you can submit directly to the bounty topics.

Mission Status: Active

Account Abstraction and Smart Accounts are changing how millions will experience Web3. This writing bounty is your chance to not only win rewards but also help shape how our community understands and navigates this transformation.

Stay on mission and bring your best ideas to the page.

Mission Status: Active. Your words can help chart the course of Web3.

The Ontology Ecosystem continues its orbit through decentralized identity, reputation, and privacy. August brought fresh launches, new quests, and community-driven momentum across ONTO Wallet and Orange Protocol. Below, I’ve logged the most notable signals from the network.

Sector Scan: DID & Web3 Reputation

• Sony breaks orbit with Soneium Score – a reputation-driven system deployed on its new Ethereum L2, Soneium. Proof that even corporate giants see trust as the missing link in decentralized economies.
• Humanity Protocol ignites mainnet – $1.1B in valuation at launch, promising a privacy-first bridge for digital identity. Another ambitious attempt to balance verification with sovereignty.
• Polkadot’s Proof of Personhood – designed to fight Sybil attacks with identity attestation. The experiment is bold: linking individuality to chain-level consensus.
• MetaMask deploys Social Login – identity abstraction enters mainstream wallets, letting users authenticate without juggling seed phrases. Seamless, but the jury’s still out on decentralization.

Ontology Command Updates

• Activated the ONT ID Loyalty Quest on Intract: Loyal NFT Plus rewards, swappable for $ONG once 10 NFTs are collected. You can still take part!
• Ontology Ecosystem activity also included the monthly quiz on Discord, rewarding sharp minds with ONG via Loyal Member NFTs.
• Hosted Privacy Hour Space, featuring voices from across the ecosystem, including @asmallguppy of MyEtherWallet.
• Logged new community dispatches:
  • Article from @Emmiz_E on Ontology’s role in global finance.
  • Poll on integrations for @ont_did.
  • A deep-dive video on Zero Knowledge Proofs by @AaronITS__.

• A thought-piece on digital distrust.
• Announced missions to Japan: Ontology docked at WebX Tokyo 2025 and the WebX Fintech Expo in Osaka.
• Recorded the outcome of the OG Trader Competition.
• Published consensus round 259 summary.

ONTO Wallet Operations

ONTO Wallet remains a core hub within the Ontology Ecosystem.

• Released V4.9.10, expanding bridges to Solana, TON, and Tron, and optimizing WalletConnect.
• Broadcasted the Top 10 dApps and Top 10 chains in ONTO for July.
• Orchestrated multiple rounds of the TON trading lucky draw with @ston_fi, rewarding participants through four waves of announcements.

Orange Protocol Transmission

Orange Protocol expands Ontology Ecosystem capabilities by building zkTLS use cases that support trust and Sybil resistance.

• Deployed a series of guides on Orange Pass, showcasing its use in grants, bounties, retro funding, and DAO Sybil resistance through multi-source zkTLS proofs.
• Promoted the ONT ID Loyalty Quest.
• Published contributor work from @AliMathusginola.
• Launched Orange Pass on the Chrome Web Store, bringing zk proofs of Web2 data into orbit.

Core Stats

• Ontology Ecosystem has now recorded a total of 20,023,831 transactions.

New Mission: Community Writing Bounty

The Ontology Ecosystem is launching a 3-week community writing bounty to spotlight one of the most important shifts in Web3: the move from EOAs to Smart Accounts through Account Abstraction.

Each week, a new topic will be announced. Write a 500–1000 word article, submit it to our Medium publication, and the winning piece will be featured for the entire community to read.

 Schedule & Topics

• Week 1: What is Account Abstraction?
• Week 2: What are Smart Accounts?
• Week 3: How Smart Accounts and Account Abstraction fit together

 Prize: $25 in ONG each week

 Judging Criteria: clarity, creativity, and community value

This is your chance to share your voice, sharpen your ideas, and help shape the conversation around Web3’s future.

Community Questions of The Month.

It’s not too late to share your opinions. Head over to Reddit to join the lively debate and help shape the future of privacy. 7 Questions to be answered. Privacy Matters!

Mission Status: Stable.

August closed with momentum across decentralized identity, reputation, and privacy. The constellations point to a busier September as Ontology Ecosystem protocols push deeper into Web3’s unexplored territory.

End Log.