EIP-7702 is a proposal designed to enhance the capabilities of Externally Owned Accounts (EOAs). EOAs are basic accounts on the Ethereum network that can send transactions and interact with smart contracts. However, they lack certain functionalities found in certain crypto wallets, such as transaction batching and gas sponsorship.
EIP-7702 aims to allow EOAs to gain smart contract functionalities by pointing to a specific delegation address whose code they want to execute. This hybrid approach combines the simplicity of EOAs with the programmability of contract-based accounts, introducing features typically reserved for smart contract wallets. EIP-7702 was created in response to some limitations and criticisms of EIP-3074.
The EIP-7702 update is expected to go live with the Ethereum Pectra upgrade, scheduled for May 7, 2025.
How Does EIP-7702 Work?
EIP-7702 allows an EOA to enhance its functionality by signing an authorization that points to a specific delegation address. This delegation address contains the code that the EOA wants to execute, granting the account new capabilities such as transaction batching, gas sponsorship, and alternative authentication.
Transaction preparation
The user starts by preparing a transaction, including the usual details like destination address, gas limit, and any data that needs to be sent. In addition to these details, they sign an authorization pointing to a specific delegation address. This delegation address contains the smart contract code that will temporarily enhance their EOA.
Authorization
The user then signs the transaction. This signature is crucial as it authenticates the transaction and includes an authorization list. This list details the delegation address and the conditions under which its code should be executed. Essentially, it verifies and authorizes the temporary assignment of the smart contract code to the EOA.
Execution
When the transaction is submitted to Ethereum, the network processes it by executing the code at the delegation address. This grants the EOA the enhanced functionalities specified in the delegation code, such as transaction batching and gas sponsorship.
