What is Bundler?

Bundlers represent a specialized form of Ethereum nodes that focus on processing UserOperations, either exclusively or alongside standard Ethereum transactions.

These UserOperations are directed to a network of Bundlers. These Bundlers keep an eye on the mempool and gather multiple UserOperations into a single transaction. They then package and submit these aggregated transactions to the blockchain, acting on behalf of the users. For their services, Bundlers receive compensation from the users they assist.

The rationale behind this system is to eliminate the need for every web3 user to maintain an Externally Owned Account (EOA). Since all Ethereum transactions must be initiated by an EOA, Bundlers play an essential role in making the ERC-4337 framework a reality, effectively streamlining the transaction process for users.

Sources: Ethereum, ERC4337.io, Alchemy

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