What is EIP-7702?

EIP-7702 is a proposed Ethereum Improvement Proposal (EIP) designed to address specific challenges or introduce enhancements to the Ethereum ecosystem. It focuses on improving wallet interoperability, security, or user experience. EIP-7702 aims to enable EOA (Externally Owned Account) to have smart contract capabilities by setting code values for EOA, without requiring users to create new AA(Account Abstraction) accounts or rely on specific wallet service providers. Users can still use traditional EOA wallets and complete one-click operations with a variety of complex logic in the wallet.The main goal of EIP-7702 is to make Ethereum transactions or wallet interactions more efficient, reliable, and user-friendly. EIPs like 7702 help standardize and upgrade Ethereum's capabilities, benefiting developers, users, and decentralized applications (dApps).

Why Upgrade the Current Wallet to EIP-7702?

Limitations of the Existing EIP-4337

EIP-4337 introduced the concept of Account Abstraction(AA), enabling smart contract wallets to access advanced features such as paying gas fees with any token. However, despite its sophisticated design, the adoption rate of EIP-4337 remains relatively low. Many decentralized applications (dApps) have yet to fully support this protocol, limiting its practical usability and making it difficult to provide convenience for users relying on Externally Owned Accounts (EOAs).

Why Choose EIP-7702?

1. Enhanced Compatibility

EIP-7702 focuses on compatibility with Ethereum's existing infrastructure, empowering EOAs through an authorization mechanism to enjoy some of the benefits of Account Abstraction(AA). After the upgrade, the wallet can seamlessly connect to the latest dApps and protocols, ensuring users continue to access cutting-edge features of the Ethereum ecosystem while maintaining support for current standards.

2. Improved User Experience

Compared to EIP-4337, EIP-7702 aligns more closely with the immediate needs of users. It enables the hot wallet to provide a smoother transaction process, reduce operational complexity, and significantly improve transaction confirmation speeds. Additionally, users can pay gas fees with any token, eliminating the need to hold ETH specifically, thereby simplifying the interaction process—especially for new users and cross-chain users.

3. Expanded Feature Scope

The authorization mechanism introduced by EIP-7702 lowers the adoption threshold, allowing wallets to achieve advanced features similar to those of abstract accounts without requiring full protocol support from dApps. This flexibility unlocks greater innovation potential for developers and users, significantly broadening the functional capabilities of wallets.

Potential Use Cases for the EIP-7702 Upgrade

1. One-Click Token Approval and Transfer Users can complete multi-step operations, such as token approval and transfer, in a single interaction, simplifying complex workflows.

2. Batch Execution of DeFi Strategies Users can execute complex DeFi strategies, such as borrowing, staking, and asset rebalancing in a single transaction, improving efficiency and reducing gas costs.

3. Flexible Gas Fee Payments Users can pay gas fees with any token instead of requiring ETH. This flexibility greatly enhances the user experience, especially in multi-chain interaction scenarios.

By upgrading to EIP-7702, the hot wallet not only addresses the shortcomings of EIP-4337 but also delivers more robust features, more intuitive interactions, and broader application scenarios. This upgrade is a critical step in ensuring the wallet's future competitiveness and user satisfaction.

Based on Ethereum's development timeline, EIP-7702 features will be rolled out in phases to ensure compatibility and stability.