Vitalik Buterin Proposes New Ethereum Update to Streamline Smart Wallets

Ethereum co-founder Vitalik Buterin has launched a new Ethereum Improvement Proposal (EIP-7702), aimed at resolving divisions over account abstraction in future updates. This proposal follows the controversial EIP-3074, intended for inclusion in Ethereum's next major update, Prague-Electra or "Pectra." EIP-3074 faced significant debate among developers on its path to consideration, especially concerning how it proposed handling account abstraction—a feature intended to enhance user experience in Ethereum's network. While recognized as a practical step, it was not without criticism for its prescriptive nature.

Ansgar Dietrichs of the Ethereum Foundation initially described EIP-3074 as "heavy-handed" and maintained reservations about its approach. Buterin drafted EIP-7702 in just 22 minutes, with contributions from Dietrichs, Sam Wilson, and Matt Garnett, indicating a collaborative effort to refine the proposal. The new EIP introduces a temporary transaction type for Externally Owned Accounts (EOAs), allowing them to function as smart contract wallets within a single transaction before reverting to their normal state. This strategy simplifies the development process by utilizing existing contract codes and avoids introducing new opcodes, unlike its predecessor.

EIP-7702 is designed to be compatible with future account abstraction models, specifically EIP-4337, implemented earlier in March 2023. It aims to use established wallet codes and transaction frameworks to reduce duplication and disruption. Support for EIP-7702 has been rallying among developers who previously backed EIP-3074, including notable figures like Uniswap’s Hayden Adams. The governance of Ethereum, known for its consensus-driven approach, ensures that such proposals undergo extensive public and developer scrutiny before being finalized.

Independent teams will incorporate agreed specifications into new Ethereum client versions. All validators must agree to install the updates to enable a successful hard fork, scheduled tentatively for the fourth quarter of 2024. This methodical process ensures that Ethereum continues to evolve through a community-focused and transparent approach.