Why Intent-Centric Is Blockchain's Next Big Thing

Unlocking the Future of Blockchain

Have you ever been to a busy market? Imagine you’re there and have a list of things to buy. But the market is so big and needs to be clarified. You need to figure out where to start. Now, think if you had a friend who knows the market well. You give him your list, and he gets everything for you. Easy, right? In the world of blockchains, we have something similar coming up. It’s called “intents”.

Just like giving your shopping list to a friend, you tell the computer what you want, and it does the hard work for you. This will change how we use blockchain, making it simpler for everyone. Let’s dive in and see how!

What are Intents?

Imagine you’re at a restaurant. You order a dish from the menu instead of telling the chef every step of cooking your meal. The chef knows what to do.

In the digital world, “intents” work similarly. Instead of giving step-by-step instructions to a computer, you tell it what you want. For example, instead of saying: “I want to send money from this account to this account using this method”, you say: “I want to send 50 USDC to John.”

The system understands your “intent” and takes the necessary steps. This idea of “intents” simplifies things and is poised to revolutionize blockchain and Web3.

Why are Intents Important?

Intents are set to transform the blockchain experience from a manual, step-by-step process to a more intuitive, outcome-focused approach. They promise smoother transactions, faster execution, and a more user-centric experience.

The Technical Magic Behind Intents

Have you ever wondered how voice assistants like Siri or Alexa understand what you want? It’s a bit like that with intents in the blockchain world. When you express an intent, you tell the system, “Hey, this is what I want to do.” But how does the system understand and act on it?

Enter the “solvers.” Think of them as smart assistants. When you express an intent, these solvers jump into action. They look at your intent, determine the best way to achieve it, and then do the necessary tasks. It’s like telling a friend, “I’m hungry,” and they immediately order your favorite pizza for you. The solvers are there to ensure your intent is carried out in the best possible way.

For those who love DeFi, think of it this way: Instead of navigating multiple protocols, setting approvals, and managing gas fees, you express your intent. Maybe you want to swap a token or earn the best yield. Just state it, and the solvers make it happen with the help of smart contracts. It’s like having a personal assistant in the DeFi world!

Tackling MEV Issues with SUAVE and Anoma

MEV (Miner Extractable Value) is a challenge in DeFi, where users can sometimes get less favorable outcomes due to opportunistic behaviors in the ecosystem. Think about when you want to exchange tokens on Uniswap. You think you’ll get a certain amount, but right before it’s done, someone else jumps in, affecting the price. The price changes, and you get less than you thought. This is MEV in action, where miners or traders exploit their position to benefit at the expense of regular users.

Contrary to popular belief, SUAVE is not Ethereum-centric. It’s designed for a “multi-domain” (multi-chain) environment, ensuring users’ intents are executed favorably across various chains, minimizing MEV’s impact.

Anoma, while often mistaken as a blockchain, is a network. It’s anticipated to leverage the security of established blockchains like Ethereum. Anoma’s design prioritizes user intents, ensuring a harmonious ecosystem where MEV exploits become obsolete.

While MEV is challenging, innovations like SUAVE and Anoma are turning the tables. They’re ensuring that in the world of swaps, staking, and other DeFi activities, the user’s desire isn’t just heard and fulfilled in the best possible manner.

The Benefits of an Intent-Centric Model

Enhanced User Experience: In the DeFi world, imagine wanting to swap a token for the best possible price. Instead of browsing multiple platforms, checking rates, and manually making the swap, you express your desire. Platforms like 1inch or Chainge are intent-centric. They take your “intent” to swap and find the best route for you, saving time and hassle.

Potential for Reduced Transaction Fees: With intent, transactions can be optimized. Instead of multiple individual transactions, one optimized transaction can fulfill the intent, potentially reducing fees. Think of it as bulk buying in DeFi. It can be cheaper when you group your needs.

Increased Privacy and Security: Using an intent-centric model, users only share their end goal rather than the detailed steps to achieve it. This means less exposure to one’s strategies or preferences, enhancing privacy. Plus, by relying on established pathways, transactions are safer.

Potential Challenges and Downsides

Balance Between Solver Efficiency and User Privacy: While it’s excellent that solvers can find the best way to fulfill an intent, there’s a balance to strike. The more information solvers have, the better they can work. But this could mean users need to share more, affecting their privacy.

Technical Challenges in Implementation: Building a genuinely intent-centric model isn’t easy. It’s about understanding what a user wants and navigating the vast DeFi landscape to fulfill that intent efficiently. This requires advanced algorithms and a deep understanding of the DeFi space.

Concerns About Centralization and Control: If only a few big players become the main “solvers” of intents, it could lead to centralization. This goes against the decentralized spirit of blockchain. There’s also a risk that these dominant players could influence or control the intent-solving process, which might not always be in the user’s best interest.

Types of Intents Defined

1. Simple Intents: Direct desires without conditions. Example: Wanting to buy 100 USDT worth of ETH.
2. Searcher Intents: Specific desires with conditions on execution. Example: Wanting to swap tokens when gas fees are below a certain threshold.
3. Arbitrary Intents: Complex desires with multiple conditions. Example: Wanting to maximize yield over a month, requiring the platform to move funds between various DeFi opportunities.

A Glimpse into Account Abstraction and Intents

While diving deeper into blockchain technology at Biconomy, I realized the potential of combining Intents with Account Abstraction.

Account Abstraction is about simplifying user experiences. Think of it as a behind-the-scenes magic that makes blockchain tasks smoother. Traditionally, blockchain interactions are bulky, requiring users to manage everything from wallets to gas fees. Account Abstraction simplifies this, offering a more streamlined experience reminiscent of graphical user interfaces.

When we think of Intents, which we’ve discussed throughout this article, integrating them with Account Abstraction can be a game-changer. It’s like telling your system, “I want this done,” and the combination ensures it’s done in the simplest way possible without you needing to worry about the complexities.

This synergy between Intents and Account Abstraction is something we’re keenly exploring. It’s about taking the power of blockchain and making it as user-friendly as possible for everyone.

Intents simplify what users want to achieve, while Account Abstraction streamlines how it’s done.

Conclusion

The concept of “intents” is a breath of fresh air in blockchain world. By focusing on outcomes rather than processes, intents promise a more user-friendly and efficient blockchain experience. As the industry evolves, embracing an intent-centric approach could be the key to mainstream blockchain adoption.

Sources:

• Followin.io
• Paradigm
• YouTube Video 1
• YouTube Video 2
• Biconomy
• Medium — MetaWeb VC