This page explores the fundamental distinctions and underlying goals of ERC-4337 and EIP-7702, both designed to enhance Ethereum’s account abstraction capabilities through different means.

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Summary

  • ERC-4337: Introduces a smart account framework that integrates with existing infrastructure like bundlers and paymasters, all without needing any changes to the Ethereum protocol.
  • EIP-7702: Proposes a protocol-level enhancement that upgrades EOAs (Externally Owned Accounts) into smart accounts using a new transaction type. This requires a hard fork.

Rather than being rivals, these two standards are complementary. In fact, they can work together: EIP-7702 can transform an EOA into a smart account, which can then interact seamlessly with the ERC-4337 infrastructure for relaying and gas abstraction.

Given that ERC-4337 is already deployed and widely adopted, it serves as the primary standard for smart account usage today and will likely continue to be the foundation even for EIP-7702-enabled accounts.

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ERC-4337 at a Glance

Protocol Upgrade Needed: No

Architecture: Implements a framework around the EntryPoint contract, allowing smart accounts to process and validate custom transactions through bundlers and paymasters.

Core Components:

  • UserOperation (UserOp) structure
  • Bundlers (relayers of UserOps)
  • Paymasters (sponsors for gas fees)

Strengths:

  • Fully operational without requiring protocol-level changes
  • Modular design supports plug-in components (e.g., paymasters, custom validation logic)

Limitations:

  • Adds architectural complexity (e.g., separate mempool, increased calldata)

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EIP-7702 Overview

Protocol Upgrade Needed: Yes

Mechanism: Introduces a new transaction type that temporarily transforms an EOA into a contract-based smart account for the duration of the transaction.

Key Feature: Utilizes authorization_list to define behavior during this transition

Strengths:

  • Simplified developer and user experience – the protocol handles the complexity internally
  • Uses the traditional transaction path – no need for separate infrastructure like EntryPoint or custom mempools

Limitations:

  • Requires client upgrades and a hard fork, meaning adoption will vary across networks
  • Backward compatibility will be a concern during early rollout
  • The originating EOA maintains full control over the deployed smart account, making it harder to implement robust multisig or social recovery features

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Conclusion

ERC-4337 offers a flexible and extensible foundation already adopted by a growing ecosystem, while EIP-7702 simplifies the experience by pushing complexity into the protocol itself. Used together, they promise a powerful combination — enabling seamless onboarding of EOAs into smart account systems that benefit from modern abstraction features.