EthereumEIP-3074 Aims to Make Wallet Interaction More Unproblematic

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EthereumEIP-3074 Aims to Make Wallet Interaction More Unproblematic

Last updated on May 18th, 2024 at 11:37 am

With the anticipated rollout of EIP-3074 in the upcoming Pectra update by developers of Ethereum, there arises an opportunity to enhance the convenience of the use of cryptocurrency wallets. This plan features externally owned accounts (EOAs) that will be managed by users through secure private keys, enabling them to execute transactions through smart contract authorization, which is a key enhancement in their programmability.

New Ethereum Update Promises Speed But Risks Security

The upcoming update can play the role of facilitating faster transactions by allowing a batch of transactions and permitting independent parties to cover the fee costs for transactions. However, it has also led to a major discussion about security threats. Ethereum community leaders have highlighted the problems, and they fear that the increased convenience will ultimately give rise to weaknesses and may be manipulated by hackers for their benefit.

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Discourse about the EIP-3074 has shown different opinions from the leaders in the industry. Georgios Konstatonopolous, who holds the position of CTO at Paradigm, hailed this update as something that has the potential to lead to a drastic improvement in the wallet experience. Yet, at the other end of the pole, Lukas Schor from Safe and Itamar Lesuisse of Argent Wallet have raised eyebrows on security aspects of the proposal by which they argue that it can open the floodgates of such extensive permissions to smart contracts that may not be secure.

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With Ethereum’s progress through EIP-3074, instead of giving a more clear view, the community stands apart. The increase could result in more effective and convenient situations, though safety issues also arise because of this, so a careful position is thus advised. At this moment, the ongoing talks will most probably result in a plan that will be tailored towards user security.

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.