Author: Pan Zhixiong

Ethereum has successfully addressed the scalability issue in recent years by deploying multiple Layer 2 solutions, such as Arbitrum, Optimism, and Base, which have reduced transaction costs and improved efficiency. However, a resulting problem is the fragmentation of user experience: each L2 network acts like an island, and users face cumbersome steps, different bridging protocols, and complex asset and gas management when crossing chains. To address this pain point, the Ethereum core team recently proposed the Ethereum Interop Layer (EIL).

To understand EIL, it is essential to review its foundation—ERC-4337.

ERC-4337 is a standard for account abstraction proposed by Ethereum. It does not require any changes to the underlying Ethereum protocol; instead, it achieves a new type of account structure called smart accounts through the deployment of smart contracts. This type of account supports various advanced features such as social recovery, multi-signature, and batch operations, and it can also support gas payments using ERC-20 tokens through smart contracts.

However, despite the many technical innovations brought by ERC-4337, its adoption in practical use remains limited. Fragmented user experience, difficulties in multi-chain collaboration, high gas costs, and ecosystem compatibility issues have all restricted the widespread adoption of 4337.

The emergence of EIL aims to solve these problems based on ERC-4337. EIL is an additional multi-chain interoperability protocol layered on top of the ERC-4337 framework. It extends single-chain account abstraction to multi-chain account interoperability, achieving a seamless experience across multiple L2 networks.

Specifically, EIL implements two significant innovations: single-signature multi-chain operations (batch authorization) and a bidding-based funding mechanism for cross-chain liquidity providers (XLP).

• The first innovation, batch authorization, allows users to authorize multiple operations across multiple L2 networks with a single signature. In practice, the wallet first constructs individual UserOperations on each relevant chain, then consolidates these operations into a Merkle tree, allowing the user to sign only the root of the tree. When a smart account on each chain verifies the received UserOperation, it only needs to check that it belongs to the Merkle tree and that the signature is valid to execute the operation. This method significantly simplifies the process of cross-chain operations for users.

• The second innovation, the bidding-based funding mechanism, introduces a role called Cross-chain Liquidity Provider (XLP). XLP is responsible for providing asset transfer and gas payment services between different chains. When a user locks assets on the source chain and makes a cross-chain request, multiple XLPs can compete for the order through on-chain bidding. The XLP that wins the bid will provide a voucher for cross-chain asset transfer, allowing the user to directly receive funds and gas payments on the target chain to complete the required cross-chain operation. After the transaction is completed, the XLP will claim the assets previously locked by the user on the source chain.

To ensure security and fairness, XLPs must stake on the Ethereum mainnet (L1) and adhere to a strict dispute arbitration mechanism. If an XLP violates the rules, the staked assets will be forfeited, ensuring their integrity through economic incentives.

It is important to emphasize that the implementation of EIL does not require any changes to the consensus protocols of the Ethereum mainnet or L2 networks. All implementations are completed based on smart contracts and the existing ERC-4337 account abstraction framework. This design not only reduces the difficulty of implementation but also significantly minimizes the security risks that the chain itself may face.

Of course, this design also shifts the pressure and complexity onto wallets and off-chain infrastructure. Wallets need to support complex multi-chain transaction construction, single-signature multi-chain verification, interaction mechanisms with CrossChainPaymaster and XLP, and provide a simple and user-friendly interface. Off-chain infrastructure must build a complete bidding market and monitor the flow of funds and risk management for XLPs in real-time.

Ultimately, EIL provides users with an experience similar to that of a single chain. In the future, when users open a wallet that supports EIL, they will no longer need to frequently switch chains, manage cross-chain assets, or endure long waits and cumbersome operational steps for cross-chain transactions. All complex cross-chain details will be automatically completed out of the user's sight, and the user experience across the entire Ethereum L2 ecosystem will gradually unify, truly realizing the vision of multi-chain integration and seamless interoperability.

EIL also opens up a whole new possibility for the entire Ethereum ecosystem: it not only addresses the cross-chain user experience issue but, more importantly, it enables multiple L2 networks to "merge into one" in a secure, decentralized, and trustless manner.

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