Digital Identity Account Abstraction with Programmable Wallets

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Solution Overview

Problem

Existing blockchain systems lack efficient mechanisms for secure and flexible transaction execution using smart contract accounts, relying heavily on externally owned accounts that are vulnerable to single-key control and lack customizable verification logic.

Innovation Solution

Implementing digital identity and account abstraction using smart contract wallets, where user operations are validated and executed through entry point contracts, paymaster contracts, and smart contract wallets, leveraging verifiable credentials and programmable logic to manage transactions and gas fees.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If smart contract accounts are used instead of externally owned accounts, then transaction security and flexibility are improved through programmable verification logic, but device complexity increases due to the need for smart contract wallets and entry point contracts

Engineering Contradiction:
Improvetransaction securityVSAvoidsystem complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces smart contract wallets as intermediary components between users and the blockchain network. These wallets contain embedded verification logic that acts as a mediator, replacing the need for users to directly manage complex cryptographic keys while providing enhanced security through programmable authorization rules. The entry point contract serves as another intermediary layer that coordinates between external transactions and the smart contract wallet's verification logic.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The system segments the authentication and transaction execution functions into separate modular components: externally owned accounts for initiating transactions, entry point contracts for receiving and routing transactions, smart contract wallets for verification logic, and paymaster contracts for fee management. This segmentation allows each component to have specialized, simplified functionality while collectively providing enhanced security.

Inventive Principle:
Principle #1Segmentation

2Adaptability or versatility

If programmable verification logic is implemented in smart contract wallets, then transaction flexibility and customization are improved, but loss of time increases due to additional validation steps

Engineering Contradiction:
Improvetransaction flexibilityVSAvoidtransaction execution time
Core Design Contradiction:
Adaptability or versatilityVSLoss of time

Solution Approach 1:

The smart contract wallet's verification logic is pre-configured with authorization rules, spending limits, and conditional requirements before transactions are initiated. This preliminary setup of verification parameters allows the system to perform rapid validation checks during transaction execution without requiring complex real-time decision-making, thus reducing the time penalty of enhanced verification.

Inventive Principle:
Principle #10Preliminary action

Solution Approach 2:

The smart contract wallet autonomously performs verification of incoming transactions against its programmed rules without requiring external intervention for each transaction validation. The contract self-evaluates whether transactions meet authorization criteria, spending limits, and other conditions, eliminating the need for manual approval steps while maintaining flexible, customizable verification logic.

Inventive Principle:
Principle #25Self-service

3Ease of operation

If paymaster contracts are used to sponsor gas fees, then user accessibility is improved through gasless transactions, but loss of substance increases due to centralized control over fee sponsorship

Engineering Contradiction:
Improveuser accessibilityVSAvoiduser control over fees
Core Design Contradiction:
Ease of operationVSLoss of substance

Solution Approach 1:

The paymaster sponsorship system is designed to be dynamic and user-configurable rather than statically centralized. Users can programmatically define conditions under which their transactions should be sponsored, set spending limits on sponsored transactions, and revoke sponsorship authorization at any time. The paymaster contract adapts its sponsorship behavior based on real-time verification of user credentials and pre-set conditions, transferring control from centralized administrators to the users themselves through programmable rules.

Inventive Principle:
Principle #15Dynamics

Data Source

PatentUS20250238787A1Systems and methods for digital identity and account abstraction
Publication Date: 2025.07.24 JPMORGAN CHASE BANK NA
  • US20250238787A1 patent drawing
  • US20250238787A1 patent drawing
  • US20250238787A1 patent drawing

AI summary

Systems and methods for digital identity and account abstraction are disclosed. A method may include: creating, by an application executed by a user electronic device in an off-chain environment, a user operation for a transaction based on an intention received from a user; receiving, by an entry point contract in an on-chain environment, the user operation with a verifiable credential for the user; validating, by the entry point contract, the user operation using a validation function in a smart contract wallet; determining, by the entry point contract, that there is a paymaster to sponsor the transaction; determining, by a paymaster contract for the paymaster, that the transaction should be sponsored based on the verifiable credential for the user; executing, by the entry point contract, the transaction using an arbitrary execution function in the smart contract wallet; and invoking, by the entry point contract, a post-operation that performs post-operation logic.