What is EIP-3074?

EIP-3074 is an Ethereum Improvement Proposal that introduces AUTH and AUTHCALL opcodes, enabling externally owned accounts (EOAs) to delegate control to smart contracts for sponsored transactions, batch operations, and enhanced user experience without requiring wallet migration.

The Ethereum ecosystem stands at a crossroads between complex user experiences and the promise of mainstream adoption. While blockchain technology offers revolutionary capabilities, the friction of managing gas fees, understanding transaction intricacies, and navigating between different account types has created barriers for widespread adoption. EIP-3074 emerges as a bridge solution that could transform how users interact with Ethereum, making decentralized applications as user-friendly as traditional web services.

EIP-3074 is an Ethereum Improvement Proposal that revolutionizes account management within the Ethereum network. Approved for inclusion in the Prague/Electra hard fork, this proposal allows externally owned accounts (EOAs) to delegate control to smart contracts, enabling more advanced transaction strategies without requiring users to abandon their existing wallets.

The proposal introduces two new Ethereum Virtual Machine (EVM) opcodes: AUTH and AUTHCALL. These instructions create a delegation mechanism where EOAs can authorize smart contracts called "invokers" to execute transactions on their behalf through ECDSA signatures. This approach maintains EOA compatibility while unlocking features typically associated with smart contract wallets.

The AUTH opcode establishes an "authorized" context variable based on ECDSA signatures, allowing users to prove their intent to delegate specific transaction execution authority to invoker contracts. The AUTHCALL opcode enables these authorized contracts to execute transactions as if the EOA itself were conducting them.

This delegation mechanism operates through a commit-reveal scheme where users sign a commitment hash that contains specific transaction parameters. A safe invoker should accept the values from the user and compute the commit hash itself, ensuring that the invoker operates on the same input that the user authorized.

The security model includes several safeguards: authorizations are reversible, the nonce requirement prevents replay attacks, and users maintain ultimate control over their private keys throughout the delegation process. AUTH requires the nonce in the message to be equal to the signer's current nonce, ensuring that any transaction from the EOA invalidates all outstanding authorizations.

The relationship between EIP-3074 and ERC-4337 represents one of the most significant discussions in Ethereum's development roadmap. EIP-3074 aims to abstract Execution by supercharging the EOA with arbitrary execution logic through invokers, while ERC-4337 aims to abstract the entire account across all five functionalities: authentication, authorization, replay protection, gas payment, and execution.

ERC-4337 requires users to migrate to smart contract wallets, which can be complex and costly for existing Ethereum users who have assets stored in EOAs. In contrast, EIP-3074 enhances existing EOAs with advanced functionality while maintaining familiarity and avoiding the need for asset migration.

The key distinction lies in scope and implementation. ERC-4337 runs on top of the blockchain and does not require any changes to the blockchain itself, making it usable today on Ethereum or any EVM chain. However, EIP-3074 requires a hard fork due to the introduction of new EVM opcodes, but provides more immediate integration with existing user workflows.

Traditional Ethereum accounts operate with hardcoded functionalities that limit user experience. EOAs bundle authentication and authorization together through immutable ECDSA keys, use simple nonce-based replay protection, require direct ETH balance for gas payment, and support only single-call execution to single destinations.

Account abstraction introduces programmability to these five core functionalities, enabling different signature schemes, flexible access policies, advanced replay protection, gas payment decoupling, and complex execution logic. EIP-3074 specifically addresses execution abstraction while maintaining compatibility with existing account structures.

One of EIP-3074's most compelling features is the ability to enable sponsored transactions, where third parties can cover users' gas fees. This mechanism works by having the user sign a transaction without specifying the gas price or limit, while the sponsor provides the necessary gas fees and submits the transaction to the network.

This capability removes a significant barrier to mainstream adoption, particularly valuable for stablecoin applications where users can transact without needing to manage ETH for gas payments. Applications can now cover transaction costs for their users, enabling business models where gas fees are included in subscription services or promotional offerings.

For platforms focused on cross-chain stablecoin operations, sponsored transactions eliminate the complexity of maintaining native tokens across multiple networks. Users can focus on their intended actions rather than managing gas fee logistics across different blockchain ecosystems.

EIP-3074 enables multiple operations to be executed in a single transaction, eliminating traditional patterns like approve-then-transfer for token operations. The proposal allows multiple operations to be executed in a single transaction, enabling more efficient multi-step operations within unified user experiences.

This batching capability proves particularly valuable for complex DeFi operations, cross-chain interactions, and scenarios where multiple related actions need to execute atomically. Users can combine token swaps, staking operations, and protocol interactions into single, coherent transactions.

The atomic nature of these operations means that either all operations succeed or the entire transaction reverts, providing consistency guarantees that improve user confidence in complex blockchain interactions.

Unlike permanent account migrations, EIP-3074 provides reversible delegation that can be revoked at any time. The authorization process maintains user sovereignty over private keys while extending functionality through carefully audited invoker contracts.

The proposal includes mechanisms for social recovery, where trusted entities can help users regain account access if private keys are lost. While not directly built into EIP-3074, invoker contracts can implement social recovery features that leverage the delegation mechanism.

The security of invokers is a significant concern associated with EIP-3074. To address this, the proposal emphasizes rigorous audits of invoker contracts and the implementation of phishing protection registries to verify contract authenticity.

Invoker contracts serve as the intermediary layer between users and the blockchain, responsible for validating user intentions and executing authorized operations. These invoker contracts, responsible for executing user transactions, require the right design to avoid unauthorized access and prevent nefarious use.

Best practices for invoker implementation include comprehensive security audits, non-upgradeable contract design, transparent operation logic, and robust access controls. The EIP strongly recommends users interact only with trusted invokers that have undergone rigorous audits and static analysis.

The commit-reveal mechanism allows invokers to implement arbitrary constraints while maintaining user control over transaction parameters. This flexibility enables specialized invoker contracts for different use cases, from simple gas sponsorship to complex multi-party transactions.

EIP-3074's design prioritizes compatibility with existing Ethereum infrastructure, including wallets, tools, and developer frameworks. The proposal maintains backward compatibility while extending EOA capabilities through opt-in delegation mechanisms.

Wallet integration becomes crucial for user safety, as signing a single malicious AUTH message would be enough for an adversary to gain full control over an EOA. Wallets must implement clear messaging around EIP-3074 signatures and provide adequate warnings about delegation risks.

For platforms like Eco that focus on cross-chain stablecoin infrastructure, EIP-3074 enables seamless integration with existing EOA-based user workflows while unlocking advanced functionality like cross-chain operations and sponsored transactions.

The delegation model introduces new attack vectors that require careful consideration. Malicious or vulnerable invoker contracts could potentially compromise user funds, making contract auditing and security practices paramount.

Several risk mitigation steps have been proposed, including regular audits by reputable security firms, wallet-level whitelisting of trusted invoker contracts, and community-maintained registries of verified contracts.

The proposal addresses these concerns through multiple layers of protection: limited authorization scope, revocable permissions, nonce-based invalidation, and the requirement for explicit user signatures for each delegation.

The introduction of delegation mechanisms creates new opportunities for social engineering attacks where malicious actors attempt to trick users into authorizing fraudulent invoker contracts. To mitigate this, EIP-3074 also proposes a phishing protection registry.

User education becomes critical for safe adoption, with wallets and applications needing to provide clear information about delegation risks and benefits. The community consensus emphasizes the importance of only interacting with well-audited, reputable invoker contracts.

EIP-3074 changes how contracts can determine transaction origin, potentially affecting existing smart contracts that rely on the assumption that msg.sender == tx.origin indicates first-frame execution. Currently, it is possible to determine if a smart contract is executing in the first frame of a transaction by checking that CALLER == ORIGIN.

The proposal addresses these concerns by maintaining the property that accounts with both code and known private keys cannot make arbitrary calls on behalf of said accounts, upholding the security assumptions established in EIP-3607.

EIP-3074 enables sophisticated DeFi strategies through batch operations and sponsored transactions. Users can perform complex operations like flash loans, arbitrage, and multi-protocol interactions within single transactions, reducing gas costs and improving capital efficiency.

For cross-chain operations, EIP-3074 complements cross-chain messaging protocols by enabling seamless user experiences where gas sponsorship and operation batching abstract away the complexity of multi-chain interactions.

The proposal particularly benefits stablecoin ecosystems where users need to perform operations across multiple networks without holding native tokens for gas on each chain. This capability aligns with Eco's mission to enable seamless stablecoin experiences across Web3.

Sponsored transactions remove barriers for enterprise adoption by allowing organizations to cover gas costs for their users or customers. This model enables subscription-based services, promotional campaigns, and user onboarding programs without requiring end-users to understand cryptocurrency economics.

Batch operations reduce operational complexity for institutions managing multiple accounts or performing regular operations like payroll, distributions, or portfolio rebalancing. The atomic nature of batched transactions provides consistency guarantees important for institutional use cases.

EIP-3074 enables developers to create more intuitive user experiences by abstracting away blockchain complexity. Applications can handle gas management transparently, batch related operations automatically, and provide recovery options for users who lose access to their accounts.

The proposal supports innovative application architectures where user actions map more directly to intended outcomes rather than requiring users to understand the underlying blockchain mechanics. This abstraction layer becomes particularly valuable for mainstream applications targeting non-technical users.

The development of EIP-7702 represents an evolution of the concepts introduced in EIP-3074, addressing some security concerns while maintaining the core benefits of EOA enhancement. EIP-7702 builds on the ideas of EIP-3074 but takes a more conservative approach by making the upgrade temporary and avoiding the introduction of new opcodes.

This iterative approach demonstrates the Ethereum community's commitment to finding the optimal balance between user experience improvements and security considerations. The lessons learned from EIP-3074 inform the design of future account abstraction proposals.

Unlike proposals that require entirely new infrastructure, EIP-3074 works within existing Ethereum architecture while extending capabilities. This approach reduces deployment complexity and accelerates adoption by building on established patterns and tooling.

The proposal's compatibility with current wallet infrastructure, development tools, and user workflows provides a smoother migration path compared to alternatives that require fundamental changes to how users interact with Ethereum.

EIP-3074 was approved for inclusion in the Prague/Electra hard fork, representing a significant milestone in Ethereum's account abstraction roadmap. The implementation requires careful coordination between client teams, wallet providers, and application developers.

The hard fork timeline depends on thorough testing, security auditing, and community consensus around implementation details. Major rollups and Ethereum clients are already preparing implementations to ensure smooth deployment across the ecosystem.

The Ethereum development community is actively preparing tooling and documentation to support EIP-3074 adoption. This includes updates to development frameworks, wallet integration guidelines, and security best practices for invoker contract development.

ChainSafe is currently experimenting with a proof-of-concept implementation of an EIP-3074 plugin for web3.js, demonstrating the practical steps needed for ecosystem integration.

EIP-3074 represents a stepping stone toward full account abstraction while preserving compatibility with existing user workflows. The proposal provides immediate benefits while the ecosystem develops more comprehensive solutions like widespread ERC-4337 adoption.

The experience gained from EIP-3074 deployment will inform future account abstraction initiatives, providing real-world data about user behavior, security considerations, and integration challenges.

The proposal enables new categories of applications that were previously impractical due to user experience limitations. Applications can now provide web2-like experiences while maintaining the security and decentralization benefits of blockchain technology.

For platforms focused on stablecoin infrastructure and cross-chain operations, EIP-3074 removes significant friction points in user onboarding and daily operations, potentially accelerating mainstream adoption.

Sponsored transactions enable new business models where applications can subsidize user costs as part of their value proposition. This shift could accelerate adoption in price-sensitive markets and enable new user acquisition strategies.

The reduction in transaction complexity and cost could make microtransactions and frequent interactions economically viable, opening opportunities for new types of applications and use cases.

Organizations planning to deploy invoker contracts must prioritize security through comprehensive auditing, formal verification where appropriate, and adherence to established best practices. The consequences of security failures in invoker contracts could affect many users simultaneously.

User education becomes equally important, with applications needing to provide clear information about delegation risks and benefits. Wallet providers play a crucial role in protecting users through careful UX design and risk communication.

Successful EIP-3074 integration requires careful planning around user experience, security protocols, and operational procedures. Applications should implement gradual rollouts, comprehensive testing, and fallback mechanisms for edge cases.

The integration process should consider the entire user journey, from initial wallet connection through transaction execution and error handling, ensuring consistent experiences across different scenarios.

How does EIP-3074 differ from smart contract wallets?

EIP-3074 enhances existing EOAs with smart contract-like features without requiring users to deploy new contracts or migrate assets. Users retain their familiar wallet addresses while gaining access to advanced functionality through reversible delegation.

What security risks does EIP-3074 introduce?

The main risks involve potentially malicious or vulnerable invoker contracts that could misuse delegated authority. Mitigation includes rigorous contract auditing, phishing protection registries, and wallet-level safeguards to prevent unauthorized delegations.

Can EIP-3074 authorizations be revoked?

Yes, authorizations in EIP-3074 are reversible and can be invalidated by performing any transaction that increases the account's nonce. This provides users with an exit mechanism if they identify security concerns.

How does sponsored transaction gas payment work?

Sponsors cover gas fees by submitting transactions to invoker contracts on behalf of users. The invoker validates the user's signed authorization and executes the desired operations while the sponsor pays for execution costs.

What happens to existing smart contracts after EIP-3074 implementation?

Most existing contracts will continue to function normally. However, contracts that rely on the assumption that msg.sender == tx.origin indicate first-frame execution may need updates to handle the new delegation model.

When will EIP-3074 be available on mainnet?

EIP-3074 is approved for inclusion in the Prague/Electra hard fork, with timing dependent on testing completion, client implementation, and community consensus around deployment readiness.