Workshop: Payment Abstraction - ETHGlobal Sydney 2024

[Music] hey what's up everyone uh pleasure to meet everyone here my name is Daniel I'm from the unlimit crypto team and yeah I'll give you a Lowdown of unlimit what we do and everything related to that so we'll start off uh what is unlimit so unlimit started in 09 as a payment uh payments company so they do everything from card acquiring payment methods we have a banking as a service Suite so 09 when you know Ecom and all these different things are blowing up unlimit came into the space powering a lot of the payment rails for a lot of uh various you know conventional web 2 companies and over time as as they have built up a bunch of these payment methods licenses across the world they realized hey why don't we go into the crypto space and compete in the on andof rent uh space so that is the premise right there so on my on the last note of what I just said why why do they think hey we have all these licenses why should we go into this space so it's good to understand like the back the backdrop of like crypto on off ramps right so originally we had centralized Exchange you had your okx the coin bases those are really the First on andof ramps in the space over time uh you had different companies pop up that allowed you to integrate on andof ramps into your own application so over time you have all of a sudden new companies such as transac moonay ramp all these uh companies starting to pop out where they're allowing thirdparty Integrations onto uh partner websit and over time you now have localized on andof ramps catering to very specific markets so these the players I just listed they were across like the major markets and then over time you had smaller players pop up allowing on andof ramps in very Niche markets like Brazil Mexico uh Africa uh and Etc so unlimit came into the space they realized hey we have all the above so we have the ability to allow users in Mexico to go to the local Bodega and on-ramp in uh using like AO which is like the most popular Bodega in Mexico we have local bank we have banking rails across all the countries so like sepa in your Europe spay in Mexico uh etc etc and obviously we have cards so uh card payments so that is the premise of why they got into the space so payments right I think it's important to understand like how pay does this work okay yeah sorry I think it's important to understand how payments work um to understand why we're valuable in the space and why uh things work as they should right so we'll start off the flow um so it starts off you're the card holder right you use a card given by your bank and the bank is the issuer which banks are often called principal members but we'll get into later uh then the store is the merchant they accept your card payment through a point of sale system and the store usually has a banking relationship with an acquirer which ensures they can accept card payments and then you have the point of sale system which connects to a processor uh and the processor's role is to remain is uh the processor's role remains as the mediator that ensures a smooth conversation between the store the network and your bank the processor then informs the choir about the transaction details the acquir facilitates the transaction by connecting with a network example your visas and ask the car and ask if the card is valid and has enough funds Visa then speaks to the bank that issued your card uh the bank the issuer checks if there's enough money and then sends back a message either approving or declining the transaction and finally the processor transmits the message back to the bank system it's approved the money eventually transfers from your bank to the stores bank so that right there there I'm sure a lot of you guys have bought things but when you swipe your card that entire flow is what happens that's what's going on in the background so why are we different right so unlimit is all the above we are the acquir we are the processor we are a principal member like a lot of the major banks in the world so what happens because of that because of that um we're essentially able to avoid all of the extra fees that come with all the other on andof ramp players that actually just are wrapping other players so you have the other on andof ramps in the space they're not acquires they're using acquire they use third party processors they use third party acquires as I just said so by the time you buy crypto using your card or X payment method all of a sudden massive fees get taken away and the other players can't help it that's just what they have to do because there's no other choice they're essentially just wrapping other uh Integrations into their stack what we do on the other hand is we own the full stack so essentially we're not dictated by the requirements or the fees of other third parties we dictate that ourselves so that right there is the key key differentiator between us and pretty much everyone else in in the space and ultimately you know um I saw you I'm sure you guys saw like stripe last week they announced like crypto payments right and stripe also has an on andof ramp uh I think they created a couple years ago didn't really uh explode as much as they wanted to but this is essentially where the space is going where you have these major uh institutions like stripe us were essentially coming in and all the other ramp in this game who are just rapping it's essentially a race to the bottom who can offer the lowest fees right it's essentially that's that's the game we're playing um let me continue so yeah so this is essentially the Next Generation that everything being said this is the next generation of essentially where things are going essentially being able to have one integration that connects you in to like the foundational base layer of the payment system and you can essentially transact with the lowest in-class fees essentially because we're not using third party providers there's no like FX spreads so we're essentially creating the closest onetoone relationship possible in the space when it comes to buying crypto or selling so as I said yeah this is essentially the gen two and then we're going into the next gen which is essentially there's no more room essentially for these players to take out huge fees and huge margins essentially Us and other players in the game it's going into a position where people are going to be squeezed out and it all the premise of this is that you have to own the rails or else you end up getting owned or something it's a clever it's not as clever I want it to be but but hey you know um okay essentially all that being said I know that didn't really talk about the hackathon but I think it's important to understand like why this matters and essentially how this space Works um yeah so what does this what does this mean so essentially the premise of our hackathon is integrating account abstraction with our rails right so account abstraction really took took hold like towards the end of last year and they h i mean as much as as many of the cool things I've seen there hasn't really been this major hitter of an account of exraction app or integrating account of exraction like you know you have your your coinbase like coinbase wallet they're they're coming out with um an account exraction wallet that's a lot of people looking forward towards um but the question is like that they're a major institution or a major company can you guys create something that's can take hold in in the marketplace essentially that's the premise um of this hackathon so essentially what is what is a cter abstraction right so refers the ability for a smart contract to send and verify transactions so right now conventionally you have EA wallets which do not have the smart contract capability underneath underneath them but with these new smart contract wallets you can essentially execute smart contracts with within the scope of your actual wallet itself um so here's some other uh functionalities that with account exraction that's possible so like with account exraction wallets multiple transactions can be batched and executed um together in a single transaction and then this is important for ensuring atomicity which is where a sequence of transactions either fully completes or fails entirely with no partial execution so for example let's say user wants to approve spending of token a swap token a for token B deposit token B into a protocol well so with a normal wallet these would be three separate transactions the problem is that you could approve your approv could succeed but the swap fails now the allowance is wrong or the swap succeeds but the deposit fails now the funds are stuck in limbo so with the account exraction wallets transaction batching it would send three transactions bundled in one uh and the transaction would only be executed Ed if all three actions suceed uh succeed Adam Adam atomically at I can't even say it I'm sorry atomically there you go I'm sorry that was uh I traveled a lot to get here uh so there's no chance for a partial execution during this um yeah so that's that and you also have other things like you know gas sponsoring session key uh that allow new functionalities to be taken place within the scope of these account abstractions um you also have other things like social recovery upgradeable validation rules uh so externally owned accounts have their own validation logic hardcoded into the blockchain protocol itself for example ethereum has rules like transactions must have a valid ecdsa signature the EA is private key nonis must be sequential gases gas fees must be paid in so these rules can't be changed or customized as they're set in stone within the EA itself but in contrast smart contract wallets can program their own customer validation logic um via the smart contracts for example a smart contract wallet could have rules like you know require 2fa to send transactions uh support batching or allow paying fees in other ER c20s instead of eth itself uh uh so you have other things like plug-in plug-in extensibility and I think this is probably one of the most interesting things when it comes to the smart contract wallets essentially coding these plugins that are smart contracts within the scope of your wallet so imagine right now you have to you know you want to swap from A to B you have to go to 1 in jupiter. a whatever you have to go to but with the with with this technology now you can essentially create that mechanism within your actual wallet itself you don't need to go to 1 in to connect your wallet and do the swap you can essentially code that within the wallet itself to the point where you can say hey once eth lands in this wallet automatically swap to XYZ you don't need to do anything go to any other platform to do that it could all happen within the scope of your wallet um so with that being said um that is the premise of of essentially this hackathon is using this technology how do we democratize crypto for the mass right so if you want to go stake or do whatever action you want to do a lot of a lot of you guys can do it you know you've been in the space you've experimented here and there but if I'm some random regular person down the road I'm not going to go on Unis Swap and figure out how to like LP my tokens and do these things right I want an easy way to do it with smart with smart contract wallets you have that chance now you can essentially say hey when Ethan's my wallet go to this protocol stake where if e CLI in my wallet buy this meme coin or whatever it is you know so there's a lot of things that can happen that were only accessible to people who were knowledgeable about the space that they could that they couldn't do before now or that they could do but was never accessible to the regular person but with this it's now accessible to everyone um so so what does what does this mean it means whatever whatever you guys can imagine really pretty much taking something that's really hard and complex for a regular person understand a regular person is not going to go to Unis swap docs and figure out how to do X Y or Z right they're going to text their friend and they're they're going to ask their friend how to do it so that's really like the premise of like how far a regular person is willing to go they're not willing to go that far so how do we essentially take that and build around it so for our hackathon we actually have built out this account abstraction demo we have our onramp and um offramp demo in there so we have all of our code needed to essentially integrate our on and off-ramps um we have our docs we have a telegram Channel as well uh it's in the eth global Sydney like events list where you know we have where we're a provider it's in one of the links so you can actually go to that and join our Telegram and uh yeah ask us questions figure out anything you need and we have all we have multiple GitHub repos this is just one but we have other ones as well that show you multiple demos of our entire stack and how it works end to end um and yeah here's my telegram my Discord as I said before you can join the the hackathon Discord or the hackathon telegram as well and will help you guys with anything you need and yeah that is the uh premise thank you yeah I know uh you I think we have like two more minutes I think yeah you got a couple questions if anyone has any any thoughts ideas or concerns Yeah you mentioned about the social recovery right yeah has been already implemented yeah so it's it's not within the scope of the demo but yeah you can definitely integrate that within like there's multiple providers like the demo we use we use like zero Dev so there's multiple providers zero Dev is is one of the bigger ones yeah Zev is a good one um there's there's multiple ones I can I can send you a list within our telegram if you join it yeah yeah and but yeah all these are currently live and you can integrate however you want yeah yep is there a roll up plan for doing un New Zealand I'll get back to you yeah yeah okay yeah yeah yeah okay I got you yeah yep yeah so the question was in a race to the bottom with fees how do you compete with World pay and stripe we we essentially are World pay and stripe we are an acquir we're a processor we're essentially in in the same uh niches then isn't volume AIG they neate I mean we we compete in different jurisdictions so we're we're a European like this company's European so we have rails across like Europe APAC latam uh I mean they do too but I have to look deeper into World pay but like I know we're like one of the few if not only providers where you can go to like your local Bodega in Mexico and on ramp that way so there's definitely like yeah for card acquiring and banking sure like I'm like there's some competition there but when it comes to like localized apms which I talked about before which is like the history of on and off ramps where you know all of a sudden you have these like super Niche localized providers we essentially can do that as well um so yeah yeah thank you yeah any Bitcoin lightning payments Bitcoin lightning payments I mean I'm not going to lie man I've seen the statistics of Bitcoin lightning doesn't look that hot but maybe you got you look you look ready to kill me man maybe though we have Bitcoin lightning so you could do that right now like yeah sorry I'm sorry if I if I hurt your feelings dude yeah yeah I mean dude maybe I mean dude I'm not gonna say anything but could maybe you know yeah cool yeah hope you guys have a great rest of the day and yeah hope you guys do some cool stuff I appreciate it [Applause] [Music]