Only a handful of Web3 brands have managed to reach as many mainstream consumers as NFT collection Pudgy Penguins.
That’s why Igloo Inc., the parent company of Pudgy Penguins, is confident it can replicate its playbook with its new blockchain Abstract, an Ethereum layer-2 chain that aims to be the leading blockchain for consumer crypto products and applications.
In this article, we’ll explore Abstract’s concept of “consumer crypto,” and how and what it is building to bring the next billion users on-chain.
What is Abstract?
Abstract is a ZK-rollup and layer-2 blockchain built on the Ethereum network, designed to provide low transaction fees and high scalability for consumer-focused applications and products.
Abstract is specifically designed to differentiate from the general purpose architecture that most chains utilize, and instead focuses first on aligning developer and consumer interests via specific applications and protocols—like games and social platforms—and then move down outwardly towards popular on-chain activities like decentralized finance, or DeFi, and banking.
Image: Abstract
Abstract is EVM compatible, meaning that it can run applications designed and built for the Ethereum blockchain. Therefore, most existing Ethereum-based smart contracts can be easily ported to Abstract, enabling developers of already built applications to offer their products to Abstract’s users with minimal modifications.
What is consumer crypto?
In an Abstract blog, Igloo Inc. and Pudgy Penguins leader Luca Netz explained his concept of “consumer crypto,” which refers to “blockchain-powered applications that serve billions of people in their everyday lives for personal use.”
In other words, applications that the average person is most likely to use on any given day—like games, or social platforms. Netz referenced OpenSea, an NFT and digital collectibles marketplace, and Pump.fun, a meme coin and social trading platform, as two examples of successful consumer crypto platforms.
Other popular consumer crypto applications include casinos, prediction markets, and betting sites.
Who is building Abstract?
Abstract is being built by Igloo Inc, the parent company of the Pudgy Penguins NFT project, and Cube Labs, utilizing zero-knowledge (ZK) technologies or cryptographic proofs that help to verify transactions in a more secure, private way.
In June 2024, the company announced the acquisition of the unlaunched, NFT-focused layer-2 network Frame and its development team to help build Abstract.
Subsequently, the firm announced an $11 million fundraise, led by Founder’s Fund with participation from other Web3 venture capital firms like 1kx and Fenbushi Capital.
What’s so special about Abstract?
Abstract’s goal of bringing everyday people on-chain has led to multiple new developments that differentiate it from other blockchains.
Abstract Wallet
Abstract has developed its own global wallet for use on-chain, utilizing new developments in account abstraction to allow users to create a wallet that needs no extension or secret phrase, and does not require gas fees.
The Abstract global wallet makes use of passkeys to enable users to sign in without an email address or complex password, making it easier for users without a strong technical background to get started.
An example from the Abstract team showcases a user signing in and minting an NFT in just four clicks, far fewer than would be required in most scenarios on-chain today.
Want to see the power of @AbstractChain Global Wallet?
In this demo you can sign in, transact, and mint an NFT in just 4 clicks without touching a browser extension.
The best part? The user paid ZERO in gas fees using Abstract’s native account abstraction.
This is the future. pic.twitter.com/C3N6HyqkR4
— cygaar (@0xCygaar) November 8, 2024
Panoramic Governance
Abstract has introduced Panoramic Governance, a new type of governance design aimed at better aligning the interests of developers and consumers on the blockchain.
Panoramic Governance aims to actively incentivize governance participation and voting, while also directly rewarding the protocols that are most beneficial to the blockchain.
It does this by sharing fees with active voters and letting them decide which projects should get extra support, creating a cycle where everyone benefits by working together.
Image: Abstract
Which apps will be on Abstract?
The burgeoning Abstract ecosystem includes games, trading platforms, social products that have committed to opening when the Abstract mainnet goes live. Below we’ve compiled a list of just some of what Abstract will offer upon launch.
Games
Games committed to building on Abstract include fantasy sports like Prospect Sports and in-real-life (IRL) discovery and treasure hunts like RealGo. Other games like Duper, a poker-meets-Catan strategy game, and idle RPG Onchain Heroes are slated to launch on Abstract as well.
Social, IP, and NFTs
Social platforms like Multiplier.fun, a new take on a classic casino game, and NFT projects like Canna Sapiens have committed to Abstract.
Other projects looking to make Abstract their home include the swipe-based, Tinder-like prediction market Swipe and token launchpad Zoo.fun.
Infrastructure
Abstract’s infrastructure will host established Web3 products like Magic Eden, which will allow for trading of Abstract NFTs upon the mainnet launch. Popular blockchain analytics suite Dune Analytics, and LayerZero, a cross-chain messaging platform for interoperability between chains, will support Abstract on day one.
When will Abstract go live?
Currently Abstract is only available via testnet, but the team has announced plans to launch the Abstract mainnet in January 2025.
Abstract Mainnet.
Coming January 2025. pic.twitter.com/41KdhL5egb
— Abstract (@AbstractChain) December 15, 2024
Edited by Stephen Graves
