- Ethereum co-founder, Vitalik Buterin, has proposed a new Ethereum Improvement Proposal (EIP-7702) aimed at enhancing the sustainability of smart contract wallet functionality.
- The proposal has been met with mixed reactions from the crypto community, including Uniswap founder, Hayden Adams.
- Despite the ongoing bear market, the proposal could potentially revitalize the price of Ethereum.
Vitalik Buterin introduces EIP-7702, a new proposal for sustainable smart contract wallet functionality on Ethereum. The move could potentially boost Ethereum’s price amidst a prolonged bear market.
Introduction of EIP-7702
Ethereum co-founder, Vitalik Buterin, has recently introduced a new proposal, EIP-7702, aimed at improving the sustainability of smart contract wallet functionality on the Ethereum protocol. The proposal has sparked a range of reactions from the crypto community, with some viewing it as a potential catalyst for a revitalization of Ethereum’s price.
Uniswap Founder’s Response
Uniswap founder, Hayden Adams, has provided some insights into the proposal in response to doubts expressed by community members. Adams explained that EIP-7702 is designed to replace EIP-3074, an upgrade for standard “EOA” wallets to provide smart wallet functionality. However, Buterin was reportedly not comfortable with EIP-3074 due to its long-term implications, particularly its compatibility with EIP-4337 and potential vulnerabilities in the age of quantum computing.
EIP-7702: A Solution to Previous Concerns
EIP-7702 was introduced to address the concerns associated with the previous proposals. The new proposal enables functionalities such as third-party transaction sponsorships and privilege de-escalation, allowing users to sign sub-keys and grant them specific permissions that are much weaker than global access to the account. The proposal is currently undergoing community vetting processes, and its benefits have been well-highlighted.
Ethereum Price Amidst the Proposal
Despite the introduction of the new proposal, Ethereum’s price continues to show weakness. At the time of writing, Ethereum’s price stands at $3,058.12, down by 0.47% in the past 24 hours. Market analyst, Michael van de Poppe, suggests that it is hard to determine if Ethereum’s price is close to its low, given that the bear market has extended for about 2.5 years. However, the introduction of EIP-7702 could potentially boost Ethereum’s price once the news is fully priced into the market.
Conclusion
The introduction of EIP-7702 by Vitalik Buterin marks a significant step towards improving the sustainability of smart contract wallet functionality on Ethereum. While the proposal is still undergoing community vetting, its potential benefits to the Ethereum ecosystem are clear. Despite the ongoing bear market, the proposal could serve as a catalyst for a potential revitalization of Ethereum’s price.
