# Ethereum's EIP-4337

**EIP-4337**, also known as Account Abstraction, introduces a novel way to process transactions on the Ethereum network. Rather than interacting directly with smart contracts, users can send transactions as **User Operations**. Below is an overview of the key components of this concept.

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## **User Operation**

**What It Is:** A User Operation is a new type of transaction introduced by EIP-4337. Instead of sending transactions directly to a smart contract, users send them to a Bundler, which abstracts the interaction with the contract.

**Why It Matters:** User Operations allow users to interact indirectly with smart contracts. They specify the destination contract and necessary parameters within the User Operation, simplifying the user experience.

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## **Bundler**

**What It Is:** A Bundler is a specialized smart contract that processes User Operations. It serves as an intermediary between the user and the smart contracts, managing the transaction flow.

**Why It Matters:** Bundlers abstract the complexities of interacting with smart contracts, such as handling gas fees and optimizing transaction execution. They streamline the transaction process, making it more efficient for users.

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## **Paymasters**

**What It Is:** Paymasters are smart contracts responsible for managing the payment of gas fees associated with User Operations. They ensure users have sufficient funds to cover these costs.

**Why It Matters:** Paymasters play a crucial role in the transaction process by verifying and handling gas fee payments. This ensures that User Operations are executed smoothly without any interruptions.

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## **Smart Contract Accounts**

**What They Are:** Smart Contract Accounts refer to Ethereum smart contracts, which are self-executing pieces of code with specific state variables. Users typically interact with these contracts through transactions.

**Why They Matter:** Smart Contract Accounts perform various essential functions on the Ethereum network, from transferring tokens to executing complex decentralized application (dApp) logic.
