Current Intent-based Systems and Their Limitations
Current intent-based systems can be broadly classified into several categories based on their design and functionality:
Limit Orders and Auctions: Systems like CowSwap and 1inch Fusion utilize limit orders and batch auctions to match intents. These systems focus on finding the best execution prices by promoting competition among liquidity providers. However, they are often limited to specific use cases and lack the flexibility to handle more complex intents.
Account Abstraction (AA): Proposals like EIP 4337 introduce account abstraction, allowing users to express intents at the wallet level. This approach decouples accounts from signers, enabling custom authorization logic tailored to users' needs. However, it introduces new complexities and requires substantial changes to Ethereum’s core protocol.
Generalized Intent Infrastructure: Projects like Anoma and Essential aim to provide a comprehensive intent-based architecture. Anoma, for instance, utilizes a homogeneous protocol with a heterogeneous security model, allowing for decentralized counterparty discovery and solving. Essential, on the other hand, focuses on providing a modular intent layer and a new constraint-based language for more efficient intent executions. However, these projects are still under development and not accessible to users.
While intent-based designs offer significant improvements over traditional transaction methods, they are not without limitations. Current solutions often face several critical issues:
Limited Generalizability: Due to the constraints of current validation mechanisms, intent-based systems often lack the flexibility to be applied across a wide range of decentralized applications (dApps). These systems are typically designed to solve specific problems and are not adaptable to various use cases. For example, a system optimized for limit orders may not be suitable for more complex intents such as cross-chain transactions or interactions with multiple DeFi protocols. The validation process often restricts the types of intents that can be executed, limiting the system's generalizability.
Restricted Solution Space: Current solutions require synchronous execution, where all transaction components must be processed within a single blockchain block, and they lack mechanisms for pre-authorization, forcing users to manually approve each transaction. The inability to handle asynchronous operations and the lack of pre-authorization severely limit the solution space of existing intent-based systems. A practical example is the use of CowSwap, which relies solely on on-chain liquidity and cannot leverage off-chain options like OTC desks or centralized exchanges, thus restricting potential solutions.
Efficiency and Service Quality Issues: Many intent-based systems enforce strict on-chain processes, which are inherently slow and costly. This restriction of current solutions prevents the use of more efficient or cost-effective off-chain methods. For example, the automated market maker (AMM) model requires maintaining large amounts of liquidity on-chain, which ties up significant capital and incurs high costs. Similarly, cross-chain bridges require complex security mechanisms to ensure safe transfers, which increase both the time and financial cost of transactions. Additionally, due to the inability to handle asynchronous operations, service providers often have to bear higher service costs and potential risks. In a typical e-commerce scenario, a user might want to purchase an item, with the payment and delivery being asynchronous processes, reducing the risk for the service provider. However, current solutions require synchronous execution of intents, which increases the risk exposure for service providers. As a result, services are often slow and expensive, failing to meet the efficiency expectations of users accustomed to traditional financial systems.
In summary, while intent-based systems represent a significant advancement in simplifying user interactions and enhancing efficiency within the blockchain ecosystem, they still require more flexible and comprehensive solutions. Addressing these limitations will pave the way for a more user-friendly and efficient blockchain experience, thereby driving mass adoption and unlocking the full potential of decentralized applications and services.
Last updated