Key Points
The highly anticipated Pectra upgrade for Ethereum is set to launch on April 8.
The upgrade introduces new mechanisms that aim to enhance Ethereum’s transaction processing speed, reduce gas fees, and introduce smart accounts.
These accounts can execute multiple transactions simultaneously and even pay gas fees with different cryptocurrencies.
The Pectra upgrade is already live on Ethereum’s Holesky testnet, despite facing some challenges.
These challenges include issues with transaction finality and unexpected delays in account abstraction functionality.
Understanding EIP-7702
Will Hennessy, product manager at blockchain infrastructure company Alchemy, shared insights about the Pectra upgrade.
He discussed potential hidden threats and explained why EIP-7702, a crucial part of Pectra, might not be suitable for beginners.
He also highlighted what wallet providers need to know before implementing it.
Ethereum aspires for every wallet to function like a smart contract, and the 2025 Pectra upgrade (EIP-7702) appears to be a significant step towards this goal.
EIP-7702 allows regular wallets to run smart contract code without needing a full account overhaul.
However, it doesn’t make it easier to disguise malicious contracts.
The delegation mechanism of EIP-7702 requires explicit user authorization.
The EOA owner must actively choose to delegate control to a smart contract through a specific signature, and this delegation is permanent until explicitly revoked.
The EOA’s private key retains full control and can override smart account behavior.
EIP-7702 is not recommended for new users as it’s better for them to start with pure smart accounts.
These accounts allow for safer key rotation and multi-sig policies that can’t be bypassed.
EIP-7702 is most valuable for upgrading existing EOA wallets that already have assets or history, giving them access to smart contract features in a controlled way.
Wallet providers are advised to implement clear security measures.
These include visual indicators when users bypass smart account security, automated reputation checks for delegate contracts, and chain-specific warnings when delegation states differ across networks.
EIP-7702 adds new capabilities to EOAs, but it includes security considerations in its design.
It maintains user control through explicit authorization and revocation options.
The goal isn’t to make it easier to run arbitrary code — it’s to enable existing wallets to access smart contract features safely.
EIP-7702 doesn’t inherently increase phishing risk despite adding new functionality to EOAs.
Executing smart contract logic still requires explicit authorization from the EOA owner.
EIP-7702 can help make wallets more secure by enabling better security features.
Wallet providers need to implement proper security measures.
These include clear user interfaces showing when smart contract features are being used, strong verification of delegate contracts, easy-to-understand delegation management, and clear warnings when users are taking actions that bypass smart account security.
Security is a top priority for blockchain providers like Alchemy.
Their smart accounts have been thoroughly audited, and they’ve been securing critical infrastructure for the Ethereum ecosystem for over 7 years.
They will continue to maintain the same rigorous security standards as they support EIP-7702 adoption.
The journey to account abstraction in Ethereum has been methodical for a good reason.
Modifying how accounts work at the protocol level requires extreme care since it affects every user and application on the network.
EIP-7702 introduces a more elegant solution that builds on those learnings.
It enables EOAs to delegate capabilities to smart contracts while maintaining backwards compatibility.
This preserves the security properties users trust while unlocking new functionality.
The goal has been to expand wallet capabilities without compromising Ethereum’s core security and reliability.
The arrival of account abstraction is not just a new feature — it’s a feature done right, informed by years of research, testing, and real-world experience.