- The new EOAs transaction type temporarily enables smart contract features to improve transaction batching and security.
- Aims for a smooth transition to smart contract wallets for increased security, addressing potential issues posed by quantum computing.
With EIP-7702, Ethereum developers—among them prominent figure Vitalik Buterin—are putting forth a major update intended to advance the capabilities of Externally Owned Accounts (EOAs) by introducing a new kind of transaction. This action aims to solve current issues with smart contract wallets and improve usability.
Enhancing Transactions on Ethereum
In the course of transactions, the proposal creates a new kind of transaction in which EOAs are momentarily converted into smart contract wallets.
By batching and sponsoring transactions, this creative method not only simplifies transaction processes but also cleverly incorporates smart contract functionality into EOAs without requiring long-term modifications.
Also, this makes it possible for features like transaction bundling to work. This shows that the proposal fixes the issues with EIP-3074 by putting user actions ahead of top-level and protecting the Ethereum state’s integrity.
Very much in favor of EIP 7702, it is SO good.
It makes transactions composable (bundles!), addresses 3074 concerns nicely, isolates user-ops as top-level EVM calls, yet also supports side-effects of the bundle without hitting state/disk permanently.
— proto.eth (@protolambda) May 7, 2024
Enhancing Ethereum users’ security and usability is a primary goal of EIP-7702. In line with what ETHNews previously disclosed, the proposal describes methods for enabling users to sign using subkeys that have restricted, specific permissions, hence de-escalating rights inside a transaction.
This might greatly lower risk and improve operational control by enabling wallet administrators to impose restrictions on spending or access.
Alternative for EIP-3074
As an alternative to EIP-3074, EIP-7702 is also offered; it addresses comparable features but adds forward compatibility to avoid obsolescence in Ethereum’s changing environment.
In the field of account abstraction, EIP-7702 is positioned as a more sustainable approach because it avoids the use of new opcodes that may become obsolete in the future.
EIP-7702 also envisions a transition in which all users will eventually move to smart contract wallets due to the impending threat of quantum computing overcoming present encryption standards. This proactive technique aims to defend Ethereum from upcoming technological shocks.
Market Reaction and Upcoming Opportunities
The Ethereum market’s performance implies cautious optimism as the crypto community monitors these developments.
According to CoinMarketCap, the price of ETH is currently around $3,024.87, down 1.21% in the last 24 hours. It also shows a little gain of 0.92% during the last 7 days.