The session gathered some of the brightest minds in the Web3 space to unpack the implications of EIP-7702 on the future of smart wallets. Here’s a recap of the conversation.
Participants:
- David Kim — Senior Smart Contract Engineer @ Trust Wallet
- Rafi Ersozlu — Co-founder of Clave
- Ivo G. — CEO @ Ambire Wallet
- Kieran Goodary— CTO @ PillarX
- Host: Aldin — Product Manager @ PillarX
Key Highlights:
The session kicked off with host Aldin introducing the topic, EIP-7702, which promises to revolutionize smart wallet functionality. The goal was to examine its impact, especially how it “backports” smart account features to externally owned accounts (EOAs), creating a seamless and enhanced user experience.
Ivo: Bridging the Gap Between EOAs and Smart Accounts
Ivo, CEO of Ambire Wallet, shared his excitement for EIP-7702 and began by highlighting a common user pain point: the inability to import existing EOAs into smart wallets. He explained how EIP-7702 solves this problem by enabling smart account features for existing EOAs without requiring users to adopt new addresses.
He emphasized:
- Seamless User Experience: Users can continue using their existing accounts while benefiting from smart wallet functionalities, such as gas fee payments in stablecoins, cross-chain transactions, and batch processing.
- Compatibility with dApps: EIP-7702 ensures compatibility with dApps that don’t yet support smart account signatures by falling back to EOA signatures. This adaptability minimizes disruption for users.
However, Ivo also addressed limitations, such as the lack of true multisig functionality due to the inability to revoke the original EOA key.
Ivo also mentioned the concept of a “route key,” which allows wallets to route transactions through different keys based on their purpose. This feature could add flexibility and enhance security for users adopting EIP-7702-enabled wallets.
David Kim: Expanding Wallet Capabilities
David, Senior Smart Contract Engineer at Trust Wallet, explored how EIP-7702 opens new opportunities for wallets to provide advanced automation and functionality. He noted that while EOAs are currently limited to basic interactions (e.g., sending and receiving funds), 7702 could enable features like automated investments and streamlined payments.
David also shared Trust Wallet’s perspective on EIP-7702 implementation. He noted that Trust Wallet views the proposal as a bridge to enhance user experience while maintaining familiarity for mainstream adoption. He emphasized that integrating these functionalities could lower the entry barrier for users by providing a balance of simplicity and advanced features, aligning with Trust Wallet’s goal of catering to both casual and advanced users.
Key points included:
- Transition to Smart Wallets: EIP-7702 acts as a stepping stone for mainstream adoption of account abstraction, simplifying the user’s transition.
- Automation Potential: With smart wallets, the boundaries of wallet capabilities can expand to include automated workflows, enhancing user convenience.
Rafi Ersozlu: Advocating for Native Account Abstraction
Rafi, co-founder of Clave, brought a unique perspective by advocating for native account abstraction rather than retrofitting EOAs. While Clave currently focuses on native smart contract wallets optimized for DeFi use cases, Rafi acknowledged that EIP-7702’s hybrid approach broadens accessibility for normies.
He pointed out:
- Focus on DeFi: Native account abstraction wallets like Clave are designed for advanced DeFi interactions, prioritizing security and user experience.
- Diversity of Solutions: EIP-7702 provides an alternative path for wallets that want to enhance EOAs without fully transitioning to native account abstraction.
Kieran: Solving Longstanding Challenges
Kieran, CTO of PillarX, reflected on the technical challenges faced by wallet developers over the years. He expressed enthusiasm for how EIP-7702 addresses longstanding issues, such as:
- Gas Fee Payments: Users can pay gas fees in stablecoins, reducing the complexity of managing multiple tokens.
- Batch Transactions: Eliminating redundant approvals and simplifying interactions.
Additionally, Kieran highlighted hurdles blockchain developers face when building wallets, especially regarding interoperability and standardization. He explained how compatibility issues between dApps and wallets often create friction in user experiences. By enabling EOAs to emulate smart wallet capabilities, EIP-7702 provides a bridge that addresses these challenges, fostering broader ecosystem collaboration. Kieran also stressed the importance of continuous innovation in overcoming these barriers and creating scalable, user-centric solutions.
Struggles for dApps Adopting EIP-7702
The conversation also touched on the real hurdles dApps face when integrating EIP-7702. One key point raised was the significant resource investment required to refactor existing user journeys and signature flows. Many dApps currently prioritize EOAs due to their larger user base, which creates a natural hesitancy to adopt account abstraction.
Speakers emphasized that despite these challenges, the introduction of EIP-7702 could incentivize change. With EOA users gaining access to SmartWallet functionalities, the potential user base for dApps leveraging account abstraction is expected to grow significantly. This shift may encourage dApps to re-evaluate their flows, moving away from the traditional multi-step processes (e.g., approve-swap) towards more streamlined, abstraction-friendly experiences.
Future Outlook
It was mentioned that EIP-7702 lays the groundwork for a more user-friendly and interoperable Web3 ecosystem. The standard offers a hybrid approach, blending the simplicity of EOAs with the advanced features of smart wallets, making account abstraction more accessible to a broader audience.
Key Takeaways:
- Enhanced User Experience: EIP-7702 allows users to retain their existing EOAs while enjoying smart wallet benefits.
- Broader Compatibility: Ensures seamless interaction with dApps that may not support smart accounts yet.
- Increased Automation: Opens doors for wallets to offer advanced functionalities like automated investments and payments.
- Limitations: While it offers significant improvements, EIP-7702 does not replace native account abstraction and has some constraints, such as the lack of true multisig functionality.
The discussion underscored the importance of innovation in driving Web3 adoption. As EIP-7702 gains traction, it has the potential to redefine how users interact with the blockchain, paving the way for a more seamless and inclusive ecosystem.
If you’d like to listen to the full discussion, you can find the recording on our YouTube. Stay tuned for more insights and updates by following PillarX on X!
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