Account Abstraction

Shielded Account as Smart Contract Account

Your shielded account is agnostic to any EOA from which the transaction originated. This is because transactions are not verified by a signature by EOA. Rather, it is verified by a ZK proof. As long as proof is valid, the transaction is let through by the contract. The transactions sent via your Shielded Account can be relayed on-chain using a bundler and are EIP-4337 (Account Abstraction) compatible. This allows it to reap UX benefits like user not having to sign every transaction, sponsoring gas for user, etc, but more importantly enhancing privacy.

Privacy is enhanced as transactions via Labyrinth default to AA avoiding paying gas fees with their EOA which results in appearance of their address on-chain, hampering privacy.

This setup also enables shielded account to pay the transaction fee in any of the supported ERC-20 tokens and integrating protocols into Labyrinth, may sponsor gas fees for their users who use Shielded Account to anonymously interact with their protocol.