# Introduction

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On Ethereum there are two types of accounts:

* [externally owned accounts (EOAs)](https://ethereum.org/en/developers/docs/accounts/#externally-owned-accounts-and-key-pairs)
* [contracts accounts](https://ethereum.org/en/developers/docs/accounts/#contract-accounts)

To better understand this page, we recommend you take some time to first read a guide on [accounts](https://ethereum.org/en/developers/docs/accounts/).

The former type is the only one that can initiate transactions, while the latter is the only one that can implement arbitrary logic. For some use-cases, like smart-contract wallets or privacy protocols, this difference can create a lot of friction.

As a result, such applications require L1 relayers, e.g. an EOA to help facilitate transactions from a smart-contract wallet.

Accounts in Validium can initiate transactions, like an EOA, but can also have arbitrary logic implemented in them, like a smart contract. This feature, called "account abstraction" (AA), aims to resolve the issues described above.

Native Account Abstraction on Validium fundamentally changes how accounts operate by introducing the concept of Smart Accounts and Paymasters. Smart Accounts are fully programmable, allowing for various customizations such as signature schemes, native multi-sig capabilities, spending limits, and application-specific restrictions.

Paymasters, conversely, can sponsor transactions for users, enabling users to pay transaction fees in ERC20 tokens. This innovative approach to account management significantly enhances user experience, security, and flexibility, paving the way for broader adoption of blockchain technology.


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