Chain Abstraction - Off-Ramp Withdrawal Flow
Chain Abstraction is a fairly new concept in Web3 that allow systems abstract away the complexities of interacting with multiple blockchains and ensuring the experience is more seamless and unified.
An off-ramp in Web3 is a service or tool that allows users to convert their cryptocurrencies or digital assets back into traditional fiat currencies.
From the user’s point of view, it is straightforward approach where chains and tokens act agnostically, with the complexities handled in the backend.
The user selects the accounts/chains/network to be withdrawn; which is selected automatically be default. > selects the amount from the tokens/assets available in the account; which is done automatically for null values > selects withdrawal destination > Input amount and current > Confirm transaction.
Behind the scenes, various protocols may use different technologies to achieve this, but they share the same fundamentals.
For instance, Socket uses MOFA (Modular Order Flow Auctions). With this, you can create a transaction request, and Transmitters (individuals ready to perform tasks) will compete to be the first to execute your request. The best offer wins, the Transmitter completes your request, and takes a fee.
Similarly, NEAR uses these two main components:
Multi Party Computation (MPC) Network - This allows NEAR accounts to sign transactions on other chains without needing private keys.
Intent Relayers - It allows transactions to be wrapped in a message referred to as a meta transaction so that it can be relayed to the appropriate networks. They are responsible for the actual token exchange and covering gas fees. Relayers also help to subsidise the gas fees.
So with one account, the MPC Network allows them to buy these transactions across chains, then the relayer passes the transaction to the new network to be executed as if the user had sent it directly there.
Chain Abstraction will simplify onboarding, eliminate the need for asset bridging, open up liquidity, boost interoperability, and enhance the overall user choice experience in decentralized finance. Now, new users can use this without needing to understand the specifics of each blockchain and old users can have all their already existing accounts imported in one.
P.S: While withdrawal is used to demonstrate here, Chain Abstraction works for any type of transaction.