EIP-7702 vs ERC-4337
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.
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.
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)
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
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.