Vitalik Buterin Proposes EIP-7702 to Enhance EIP-3074's Account Abstraction
In a recent proposal, EIP-7702, Vitalik Buterin along with other developers including Sam Wilson, Ansgar Dietrichs, and Matt Garnett, have refined account abstraction on the Ethereum network.
Vitalik Buterin has proposed EIP-7702 to enhance EIP-3074's account abstraction
EIP-7702 introduces a new type of transaction that allows Externally Owned Accounts (EOA), which refer to standard Ethereum wallet addresses, to function like smart contracts.
The proposal specifies: "This EIP is designed to be compatible with endgame account abstraction without overloading the storage with any minutiae details of ERC-4337."
Account abstraction enables wallets to act as smart contracts and perform a range of complex functions such as multi-factor authentication, social recovery wallets, and flexibility for users to transact with any token.
Commenting on this new proposal, Uniswap founder Hayden Adams mentioned that EIP-7702 serves as a new alternative solution to EIP-3074 (previously considered for inclusion in the upcoming Pectra upgrade), but with additional provisions for quantum resistance and improved compatibility compared to its predecessor.
EIP-7702 is designed to be ERC-4337 compatible, a higher standard for smart contract wallets, regarded as "endgame account abstraction," envisioning a future where all users use smart contract wallets.
According to Ethereum community evaluations, EIP-7702 could alter how account abstraction features are implemented in future network upgrades. The new transaction type proposed in EIP-7702 includes fields for contract code and signatures - offering functionalities akin to those proposed in EIP-3074, allowing for transaction bundling where sponsorship transactions are paid by another account.
EIP-7702 addresses common issues such as batch transactions, gas paying wallets, and setting user privileges through subkeys. Its core purpose is to provide enhanced usability and security for EOAs.
By enabling EOAs to temporarily convert into contracts, accounts can be integrated into ERC-4337 suites in a manner compatible with existing EntryPoint.
Despite high regard for enhancing Ethereum wallet user experiences, EIP-3074's integration into the Pectra hard fork has faced significant opposition. Many users express concerns that insufficient scrutiny of the Invoker stage - where transaction delegation and packaging are handled separately from smart contract wallets - could pose security risks.
With EIP-7702, users consolidate transaction processing, mitigating potential security vulnerabilities arising from division.
Despite the proposal's merits, Ethereum's founder notes that EIP-7702 may face criticisms akin to those faced by EIP-3074, as it demands trust in code and potential centralization concerns.
