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For a long time, smart wallets promised to give Ethereum programmable logic, adaptable security, and user-friendly experiences nevertheless, adoption was sluggish, expensive, and dispersed. Until the latest Ethereum Pectra update.
EIP-7702 with Ethereum's Pectra update have made it possible for ordinary wallets (EOAs) to function as smart wallets without switching to contract wallets. This allows for programmable logic, gas optimization techniques, improved and secured transactions, with a smooth user experience. This implies a significant change in the way that user flows, dApps, and wallets are created for developers.
As a part of smart wallet development, this article will examine how smart wallets post-Pectra have passed, what has changed, and how to take advantage of these potent new features and what developers must do to keep on top of the game in the following article. Now let's get started.
How will EIP-7702 affect wallet development?
EIP-7702 is a fundamental component of smart wallet innovation. Most fundamentally, this update enables EOAs to temporarily assign control to smart contracts. Because of the reversible nature of this delegation, users can utilize smart contract capabilities while retaining ownership over their initial EOAs.
The quick adoption of EIP-7702 for developers, which had over 11,000 authorizations in the first week of its release, indicates that both developers and consumers are becoming increasingly interested in it. This update has far-reaching consequences that will drastically change the Ethereum wallet market.
Key Features of EIP-7702 for Developers
1. Batch Transactions
The use of batch transactions is revolutionary. The user experience is streamlined and gas expenses are greatly decreased when users combine several operations into a single transaction, such as approving a token and carrying out an exchange. For DeFi applications, where users frequently take several steps to finish a single activity, this capability is especially helpful. Developers can improve customer satisfaction and retention by reducing the number of transactions.
2. Gas Sponsorship
For many consumers, gas prices have long been a deterrent to joining the Ethereum ecosystem. Gas sponsorship, introduced by EIP-7702, enables applications or third parties to pay transaction costs even while using coins other than ETH. This feature makes Ethereum more accessible to a wider audience by facilitating a "gasless" user experience and reducing onboarding friction. Developers can utilize this feature to encourage adoption by offering incentives or making it easier for new users to use.
3. Programmable Security
With its programmable security features, EIP-7702 improves security, which is crucial in the blockchain development realm. Spending caps, social recovery techniques, and multi-signature authentication are now available to developers. Previously exclusive to contract wallets, these features are now accessible to EOAs thanks to EIP-7702. This change encourages confidence in using decentralized applications by giving users the ability to manage their money more securely.
4. Modern Authentication
EIP-7702 enables wallets to go beyond conventional private key management by supporting contemporary authentication techniques like biometrics and passkeys. This modification has the potential to greatly enhance user experience (UX) by improving wallet security and usability. By utilizing well-known authentication techniques, users can lower the learning curve for novices and improve usability in general.
5. No Forced Migration
The fact that current users do not need to switch wallets or move their money is one of EIP-7702's most user-friendly features. Current EOAs can be enhanced with smart wallet capabilities, enabling customers to gradually embrace new functionality. Users are encouraged to investigate the advantages of smart wallets after pectra upgrade without worrying about losing access to their funds, thanks to this smooth integration.
6. Advanced Scheduling
A further fascinating feature is the ability to plan transactions for future execution. This feature lets users automate their interactions with dApps and makes it possible to create intricate financial products and procedures. A user might, for example, create conditional payments or recurring transactions based on certain criteria, increasing the flexibility of financial operations on Ethereum.
How does Pectra impact smart wallet development?
Smart Account Integration
The Pectra update gives EOAs the ability to incorporate executable code in each transaction, giving them the ability to serve as temporary smart contracts. Users can now carry out intricate tasks without the requirement for a specific smart contract, thanks to this integration, opening up a whole new world of possibilities. Because of this, developers may make more complex dApps that make use of these features while making the user experience simpler.
Gas Efficiency
Gas efficiency is greatly increased by EIP-7702 while smart contract logic is being executed. Once thought to be excessively expensive, operations may now be carried out more cheaply, giving them attractive possibilities for developers. The development of more complicated dApps and services is made possible by this advancement since users can interact in various ways without worrying about incurring excessive transaction costs.
Inter-Contract Communication
Improved intercontract communication makes it easier for contracts to communicate with one another. More composability is encouraged by this enhancement, enabling developers to create more networked dApps that can easily exchange resources and data. Because developers can use current contracts to construct new solutions, the ecosystem as a whole can become more inventive and resilient.
Backward Compatibility
By maintaining backwards compatibility with current EOAs, EIP-7702 guarantees uninterrupted user access to wallets. Nonetheless, developers are urged to examine and improve their contracts to benefit from the upgraded gas efficiency and features. Better performance and a more responsive user experience may result from this enhancement.
Wallet Provider Support
With the anticipated inclusion of EIP-7702 by major wallet providers like MetaMask, these cutting-edge functionalities will be widely available. This support will probably encourage developers to incorporate smart wallet features into their dApps and hasten the adoption of these features throughout the Ethereum ecosystem.
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Best Practices for Developers
- Review and Refactor
To make sure that existing wallet integrations and smart contracts are compatible with EIP-7702, thoroughly audit them. Determine which areas may be optimized to make the most of the new features. - Security First
More programmability leads to more complexity. Strong security checks, particularly concerning delegation and recovery procedures, should be implemented by developers. This proactive strategy will assist in reducing the hazards connected to more complex interactions. - Test Thoroughl
There may be more edge situations as a result of the addition of improved functionality. Developers should spend money on thorough testing and validation procedures to make sure that new features work as planned in a range of situations. - Collaborate and Share
It is essential to interact with the Ethereum development community in order to exchange solutions and best practices. Cooperation can result in quicker innovations and better security measures as the ecosystem adjusts to these changes.
Forward-looking perspective of Smart Wallets Post Pectra
User Experience
Pectra and EIP-7702's improvements are meant to make Ethereum wallet infrastructure as user-friendly and safe as more conventional finance apps. These modifications, which lower obstacles and enhance accessibility, are expected to encourage users who might have been reluctant to join the Ethereum wallet ecosystem to do so.
dApp Innovation
With features like smart recoveries, programmable spending, and gasless onboarding, developers can now create more complex and adaptable dApps. This increased adaptability will result in creative solutions that can accommodate a range of user requirements and preferences.
Ecosystem Growth
It is anticipated that additional standards, frameworks, and developer tools will appear as smart wallet popularity rises. A more dynamic environment for developers will result from this ecosystem expansion, promoting experimentation and teamwork.
Conclusion
In conclusion, the smart wallets post-Pectra environment presents Ethereum smart wallets as secure, programmable, and easy to use by default. The possibilities of EIP-7702, including batch transactions, gas sponsorship, and sophisticated security features, are urged to be embraced by developers in order to create wallet experiences and next-generation dApps. The improvements made by the Pectra upgrade represent a significant step in smart wallet development toward a more integrated and user-centric blockchain ecosystem.
Want to explore more about these smart wallet services, ranging from development to innovating blockchain solutions for your business? You can get in touch with Codiste’s blockchain division here and dive in with a variety of offerings at your disposal. Connect with us today.
CTO & Co-Founder | Codiste
Nishant is a dynamic individual, passionate about engineering and a keen observer of the latest technology trends. With an innovative mindset and a commitment to staying up-to-date with advancements, he tackles complex challenges and shares valuable insights, making a positive impact in the ever-evolving world of advanced technology.
