Executive Summary: What Are Smart Contract Wallets?
In this article, I explain what smart contract wallets are and how they differ from regular wallets by enabling users to control funds via a smart contract.
Summary:
Smart contract wallets allow users to control funds via a smart contract instead of a private key, enabling enhanced security, usability, and interoperability features compared to regular wallets.
What are smart contract wallets:
- Users control a smart contract holding their funds, not a private key
- Enables features like recovery without seed phrase, transfer limits, multi-sig
How they differ from regular wallets:
- More secure: recovery methods, transfer limits, multi-sig
- Better usability: interact directly with dApps
- More interoperable: gasless transactions, meta transactions
Benefits of smart contract wallets:
- Lower gas fees
- Enhanced user experience
- Increased security and account recovery
Risks of smart contract wallets:
- Bugs, errors or vulnerabilities in contract code
- Malicious modules or loss of control
- Improper dApp integrations, phishing risks
ERC-4337:
- Standard that enables easier use of smart contract wallets
- Allows features like multi-factor authentication and auto-payments
Popular options:
Argent, Safe, Squads, Instadapp, Biconomy
Full article:
What Are Smart Contract Wallets? | CoinMarketCap
Smart contract wallets, based on contract accounts instead of externally-owned accounts (EOA), offers enhanced security, usability and interoperability for Ethereum users.
CoinMarketCap