- Paradigm CTO Georgios Konstantopoulos has called EIP-3074 a significant improvement, claiming it will “10x” the Ethereum wallet user experience
- EIP-3074 has aimed to enhance user transactions by simplifying processes and reducing costs through third-party sponsorship
- The proposal has enabled third parties to pay gas fees, increasing Ethereum’s accessibility for users with varying levels of blockchain knowledge
Paradigm Chief Technology Officer Georgios Konstatonopolous hs said that Ethereum’s EIP-3074 “is a big deal” and will “10x” the user experience with Ethereum wallets. EIP-3074 is a proposal intended to enable sponsored transactions on the Ethereum network, with its primary aim being to improve the user experience by simplifying transaction processes and reducing costs through third-party sponsorship. This proposal allows a third party to cover gas fees, making Ethereum transactions more accessible to a broader audience, regardless of their familiarity with blockchain technology.
User Experience Needs Improving
Mainstream adoption remains the holy grail for the crypto space, with the user experience being one of the key hurdles to overcome. Currently, custodied wallets offer the cleanest user experience but their design doesn’t tally with the core precept of self-custody.
Ethereum developers have tried to simplify the user experience with self-hosted wallets by implementing features that unlock new capabilities, but their new aim is to make this process even smoother and more integrated with the blockchain through EIP-3074.
EIP-3074 adds two new features to the Ethereum Virtual Machine (EVM)—AUTH and AUTHCALL—which allow a third party to cover gas fees for user transactions. The AUTH feature lets an invoker contract get permission to make transactions for a user account, which is stored in the account’s settings and can be removed anytime by the user. The AUTHCALL feature is used by the invoker contract to execute transactions on behalf of the user, allowing the transaction to be processed as if the user had made it directly
This approach brings significant advantages. By handling gas fees through sponsors, EIP-3074 reduces barriers for users, making Ethereum more accessible and allowing dApps to offer new business models like subscription services or premium features where gas costs are covered. Konstatonopolous, for one, is excited by its potential:
EIP-3074 is coming in the next Ethereum hard fork.
This is a big deal. Wallet UX will 10x.
Congratulations to Ethereum and the EIP-3074 sponsors.
Reth has already implemented and tested it. We are fans.
Let’s go. https://t.co/lUiK2kb3UT
— Georgios Konstantopoulos (@gakonst) April 11, 2024
EIP-3074 Comes With Problems
However, EIP-3074 also comes with potential security concerns. To ensure user protection, secure invoker contracts are crucial, which execute transactions on behalf of users. This means they must prevent unauthorized access or misuse, leading to the Ethereum community discussing best practices, including multi-signature schemes and time-locked authorizations.
Another concern is phishing attacks, where malicious actors might trick users into authorizing fraudulent invoker contracts. To address this, the proposal includes a phishing protection registry, allowing users to verify the authenticity of contracts before giving authorization.
Developers are actively discussing and incorporating various EIPs into the blockchain’s next major hard fork, Pectra, with EIP-3074 potentially having the biggest impact.
