EIP-7702 Introduction

What is EIP-7702?

What is EIP-7702?

EIP-7702, short for Ethereum Improvement Proposal 7702, is an Ethereum upgrade officially introduced during the Pectra update in 2025. Its goal is to make regular user accounts (externally owned accounts, or EOA) more flexible and powerful. By introducing a new transaction type (Type 0x04), EIP-7702 allows regular accounts to temporarily "borrow" smart contract functionalities, such as batching multiple operations, enabling third-party gas fee payments, or setting up more secure permission management. Most importantly, users can enjoy these advanced features without needing to switch to a new wallet.

In simple terms, EIP-7702 acts like a "smart plugin" for your regular wallet, enabling it to perform more tasks while remaining simple and user-friendly.

What is EIP-7702?

Challenges with Traditional Ethereum Accounts:

Ethereum accounts are divided into two types:

  1. Externally Owned Accounts (EOA): Common wallet accounts created through tools like TokenPocket, controlled by private keys.

  2. Smart Contract Accounts: Accounts that can run code and execute complex operations, commonly used in decentralized applications (DApps).

However, EOAs face several limitations:

  • Key Risks: Ownership is tied solely to the private key. If the key is lost or stolen, assets are irretrievably lost.

  • Gas Fee Restrictions: Wallets can only use ETH to pay gas fees, which are expensive and prone to surges during network congestion.

  • Complex Operations: Terms like "Gas Price" and "Gas Limit" are confusing for beginners, and customizing parameters is challenging.

These issues make EOAs inconvenient for users, especially when engaging in Web3 gaming, DeFi transactions, or payments.

The Dream of Account Abstraction:

Account Abstraction aims to separate "who owns an account" and "who can operate an account." Early blockchain account designs tied ownership and operational rights to private keys, making them inflexible and rigid. As blockchain applications expand into areas like gaming, payments, and social interactions, developers hope accounts can become more flexible—for example, allowing accounts to execute complex operations or enabling friends to help recover accounts. EIP-7702 is a significant step toward realizing this dream.

What Can EIP-7702 Do?

EIP-7702 enables EOAs to temporarily "transform" into smart contract accounts, unlocking the following practical features:

  1. Batch Transactions: Combine multiple operations into a single transaction, such as authorizing tokens and completing trades on decentralized exchanges (DEX) simultaneously.

    • Example: Previously, performing a swap required two transactions—approve and transfer—incurring double gas fees. Now, it can be done in one step, saving approximately 40% in costs.

  2. Third-Party Gas Fee Payment: Third-party DApps can pay gas fees for users, even allowing payments with stablecoins like USDC.

  3. Enhanced Permission Management: Users can set "sub-keys" to restrict a specific DApp's permissions, such as limiting it to spend only 1% of the account's funds. This ensures minimal losses if the DApp malfunctions.

  4. Social Recovery: If the private key is lost, users can recover their accounts through trusted friends or entities set up via smart contracts.

Pros and Cons of EIP-7702:

Pros:

  • Ease of Use: No need to switch wallets; existing accounts can upgrade and use new features.

  • Cost Savings: Batch transactions and third-party gas payments significantly reduce costs.

  • Flexibility: Supports custom permissions and social recovery to meet diverse needs.

  • Beginner-Friendly: Lowers operational barriers, making blockchain accessible to more users.

Cons and Risks:

  • Phishing Risks: Signing malicious messages may lead to dangerous contract setups, putting assets at risk.

  • Private Key Vulnerability: Despite new features, losing or compromising private keys remains a major risk.

  • Caution Required: Upgrading contracts or signing transactions requires careful attention. Always use reliable wallets like TokenPocket and avoid clicking unknown links.

How to Safely Use EIP-7702?

Want to leverage EIP-7702’s new features? Keep these points in mind:

  1. Use a Trusted Wallet: Choose a reliable tool like TokenPocket.

  2. Be Careful with Signatures: Avoid accessing unknown third-party links or signing suspicious requests.

  3. Verify Contracts: Ensure contract security before upgrading, and refer to official documentation or community recommendations.

  4. Backup Private Keys: Offline storage and proper usage of private keys remain critical.

PreviousAbout NostrNextEIP-7702 Upgrade Tutorial

Last updated

Was this helpful?