With the release of the new Ethereum network upgrade, known as the Pectra Upgrade, an opportunity has arisen to explore one of the innovative technologies introduced in this version, a technology that could transform how users interact with the network and significantly impact Ethereum’s future. Ethereum, as one of the most widely used blockchain platforms, has a unique structure for managing assets and executing smart contracts. One of the key concepts in this ecosystem is accounts, which are divided into two main types: Externally Owned Accounts (EOA) and Smart Contract Accounts. In recent years, a new concept called Account Abstraction (AA) has emerged, bringing a significant shift in how users interact with the blockchain.
1. Types of Ethereum Accounts
Ethereum has two main types of accounts:
1.1. Externally Owned Accounts (EOA)
These accounts are controlled by a private key.
To send transactions, the private key is used to sign them.
EOAs do not contain any code and only have Eth balance and the ability to send transactions.
Example: A wallet like klever wallet that is controlled by your private key.
1.2. Smart Contract Accounts
This type of account contains bytecode deployed on the network and can receive transactions or respond to specific conditions.
The control of these accounts is not through a private key but rather through the logic programmed in the smart contract.
2. Understanding the Distinction Between EOA and Smart Contract Accounts
| Feature | EOA | Smart Contract Account |
|---|---|---|
| Controller | Private key | Smart contract code |
| Programmability | No | Yes |
| Ether (Gas) Requirement | Yes | Customizable logic can be implemented |
| Custom Code Execution | Only sign and transfer | Custom logic can be implemented |
| Recoverability | If the private key is lost, the account is lost | Recovery logic can be defined |
3. The Concept of Account Abstraction (AA)
Account Abstraction refers to separating the transaction verification logic from the fixed EOA structure. In the traditional model, transactions are signed exclusively using the private key with ECDSA. However, with AA, it becomes possible to use custom mechanisms like multi-signatures, biometric verifications, social wallets, and even conditional contracts.
Difference from Traditional Accounts:
In AA, accounts can have custom verification rules.
There is no longer a need to rely solely on a private key for transaction signing.
Security, user experience, and flexibility are greatly enhanced.
4. Benefits and Applications of Account Abstraction
Benefits:
- Increased Security: Enables multi-step authentication, social recovery, and time or geographical restrictions.
- User-Friendliness: Users can perform transactions without needing to manage private keys or gas.
- Flexibility: Supports new cryptographic signature structures and custom algorithms.
Applications:
- Smart Wallets
- Gasless Transactions (Gas payment by third parties)
- Biometric or WebAuthn Authentication
- Execution of Scheduled or Conditional Transactions
5. Conclusion
Ethereum accounts are divided into two main types: EOA and Smart Contract Accounts. While EOAs are simple and traditional, smart contracts provide extensive capabilities for more complex interactions. Account Abstraction is a major step forward in enhancing user experience, security, and efficiency. With EIP-4337, developers can now create wallets that simulate EOA behavior while benefiting from the flexibility of contracts.
Important Note:
This article is purely intended to provide a conceptual and practical overview of one of the emerging blockchain technologies and is not a recommendation for or against its use. As informed and active users in the cryptocurrency space know, security in this ecosystem is achieved only when an individual possesses sufficient knowledge of the structures, tools, and emerging technologies in the industry.
Blockchain technology is continuously evolving at a rapid pace. In such an environment, familiarizing oneself with current concepts and technologies is not only an advantage but also a necessity. This awareness helps users navigate this space with lower costs, greater security, and higher productivity while utilizing available features more effectively. Furthermore, this deep understanding transforms us into expert, capable, and vigilant users when facing blockchain challenges.
In this context, Klever’s team aims to assist you in your journey of learning and making safe and intelligent use of the potential of this technology.
Klever Wallet: A Fusion of Security, Simplicity, and Innovation
Klever Wallet is designed as an Externally Owned Account (EOA) wallet, following the traditional structure based on private keys. However, in addition to its classic functionality, this wallet introduces new, user-centric features that make the user experience much simpler and more secure.
One of the useful features of Klever is the “Backup to File” option. This feature allows users to save their recovery phrases (Seed Phrase) in an encrypted file with the .backup extension, which can be used to restore the wallet when needed.
Important Note:
This file contains highly sensitive information. Any negligence in storing it or sharing the file with others can lead to unauthorized access to your assets. The security of this file is entirely dependent on your care and caution in storing it.
The Responsibility Lies with the User
In using self-custody wallets (Non-Custodial) like Klever, all recovery information is solely in the hands of the user. The development team of these wallets does not store or maintain any copies of your recovery phrases or private keys. Therefore, the full responsibility for the preservation, maintenance, and protection of this information lies with you.
Neglecting the security of this information could result in permanent loss of access to your wallet and digital assets, with no possibility of recovery or support from any third party.
For more information on security principles related to non-custodial wallets, we recommend reading the following article:
Link to the article: Important Security Tips for Using Self-Custody Wallets