- EIP-7702 allows EOAs to perform smart contract-like functions while maintaining transaction initiation abilities.
- Wallets must validate chain IDs and show destination contracts to stop cross-chain delegation misuse.
- Exchanges need to trace transactions to detect spoofed deposits from contract-enabled user wallets.
Ethereum’s upcoming Pectra upgrade is set to introduce EIP-7702, a proposal that transforms traditional Externally Owned Accounts into smart contract-enabled wallets. This change allows users to access contract-based features while keeping the ability to directly initiate transactions.
EIP-7702 will enable new capabilities for EOAs, including programmable operations, multi-signature support, delegated access, and social recovery options. These features align EOAs closer to smart contracts, changing how users interact with their assets and on-chain applications.
Validation requirements tighten for wallet providers
Wallet providers must now introduce stricter verification steps to address risks related to delegation. When signing delegation requests, wallets should confirm the intended chain ID and make the destination contract address visible. Delegations with a chain ID of zero can be reused across different EVM-compatible chains, creating a risk of unauthorized operations.
Users are advised to recognize that smart contracts can behave differently across blockchain networks, even if the contract address is the same. Delegating control on one network does not guarantee the same behavior on another. Furthermore, users remain fully responsible for their accounts since private keys still hold full control even after delegations.
Developers face logic changes in transaction flows
Developers will need to adapt their smart contracts due to changes in transaction behavior. This change impacts how reentrancy and authority are verified within contracts.
Storage collisions may occur when accounts are re-delegated to different contracts. Developers are encouraged to adopt ERC-7201 namespaces to isolate storage variables. In addition, smart contracts interacting with token standards must implement proper callback functions to avoid asset loss or stuck tokens.
Centralized exchanges will need to verify deposit transactions more thoroughly. Accounts with contract-like behavior can mimic deposits, potentially fooling systems. Enhanced transaction tracing tools should be deployed to identify these cases before user accounts are credited.
