The Unspoken Ethereum Revolution: Are EOAs Really Becoming Obsolete?

Imagine a world where managing your crypto accounts is as seamless as using your favorite web app. That’s the promise of Account Abstraction in the Ethereum ecosystem. But what if this upgrade came with a major, almost silent, revolution – the potential phasing out of Externally Owned Accounts (EOAs)? Sounds like a big deal, right? It is! And it’s a conversation that needs to be much louder.

What is Account Abstraction and Why Should You Care?

Let’s break it down. Account abstraction is essentially about making web3 accounts more user-friendly and powerful. Think of it as an upgrade to how we interact with blockchain technology. Currently, in Ethereum, we have two main types of accounts:

• Externally Owned Accounts (EOAs): These are your ‘traditional’ crypto accounts controlled by private keys. Think MetaMask, Ledger, Trezor – they all use EOAs. You, the user, are in direct control.
• Smart Contract Wallets: These are accounts governed by smart contract code. They offer more flexibility and programmability but haven’t been the standard for everyday users.

The initial vision of Account Abstraction was to level the playing field, making both EOAs and smart contract wallets equally capable. The goal? To enhance user experience, security, and functionality across the board. But somewhere along the way, the roadmap seems to have taken a turn.

The Ethereum Foundation’s Vision: Bye-Bye EOAs?

Recent developments suggest a more radical approach. It appears the Ethereum Foundation is leaning towards making smart contract wallets the default, and potentially even the only, account type for users. This came to light at ETHDenver, where Ethereum Foundation Security Fellow Yoav Weiss presented EIP-4337.

EIP-4337: The Building Blocks of Change

EIP-4337 is a significant Ethereum upgrade designed to bring account abstraction to life. It introduces several key components that make smart contract wallets more viable and user-friendly:

• Decentralized Bundlers: These actors bundle multiple user operations into a single transaction, optimizing gas costs and network efficiency.
• Token Fee Payment: Imagine paying gas fees in tokens other than ETH! EIP-4337 opens the door to paying transaction fees with ERC-20 tokens, making transactions more accessible.
• Alternative Mempool: A separate mempool specifically for account abstraction operations ensures smooth processing and prevents congestion.

These features are powerful, no doubt. But here’s the kicker – according to the EIP-4337 whitepaper itself, the ultimate goal is “totally removing any need at all for users to additionally have EOAs.”

Vitalik Buterin himself, back in September 2021, proposed the idea behind EIP-4337 with the explicit aim to “eliminate EOAs for users.” This ambition, however, seems to have flown under the radar for many in the community.

Why the Silence? And Why Should We Talk About It Now?

Interestingly, when contacted, many wallet providers seemed hesitant to discuss the potential EOA elimination, citing a lack of clear timelines from the Ethereum Foundation. The Ethereum Foundation itself hasn’t issued an official statement addressing this specific point publicly.

This silence is concerning because EOAs are the bedrock of how most people currently interact with Ethereum and Web3. Let’s understand why EOAs are so fundamental.

EOAs: The Unsung Heroes of Web3

EOAs are more than just crypto addresses; they are your cryptographic identity on the Ethereum blockchain. Here’s what makes them essential:

• Private Key Control: You, and only you, control your EOA through your private key. This grants you complete autonomy over your assets and actions on the blockchain.
• Simplicity and Security (in its own way): EOAs are straightforward. They don’t have complex code. Their security relies on the strength and secrecy of your private key.
• Foundation of Existing Infrastructure: Metamask, Ledger, Trezor, SafePal – all these popular wallets are built on EOA architecture.
• Transaction Initiation: EOAs are the entities that sign transactions, enabling you to send crypto, interact with dApps, and deploy smart contracts.

In essence, EOAs are the tested and trusted method for managing digital assets for millions of users. Removing them is not a minor tweak; it’s a fundamental shift.

The Potential Pitfalls of an EOA-less Ethereum

While the promise of streamlined account management is attractive, transitioning away from EOAs could introduce a range of challenges:

• Complexity Creep: Smart contract wallets, while powerful, are inherently more complex than EOAs. Will this increase the learning curve for new web3 users?
• Gas Cost Concerns: Smart contract operations generally require more gas than simple EOA transactions due to their computational overhead. In a world dominated by smart contract wallets, will transaction costs rise?
• Compatibility Conundrums: EOAs are deeply ingrained in the EVM ecosystem. Removing them could lead to unforeseen compatibility issues with existing dApps and infrastructure.
• Security Shifts: Smart contract wallets introduce a different security paradigm. Bugs in smart contract code could potentially lead to vulnerabilities, requiring robust auditing and security best practices.
• EVM Fragmentation Risks: If Ethereum moves away from EOAs, will other EVM-compatible chains follow suit? Or could this create fragmentation within the EVM ecosystem, hindering interoperability?
• Adoption Friction: Forcing users to adopt a completely new account model could create friction and slow down web3 adoption, especially if the transition is not smooth and well-explained.
• Regulatory Gray Areas: The regulatory landscape for smart contracts is still evolving. Regulations like the EU’s IoT act, requiring ‘death switches’ in smart contracts, raise questions about self-sovereignty in smart contract wallets. If a smart contract wallet must have a kill switch, who controls it, and what does that mean for user autonomy?

Let’s consider gas costs specifically. Even in a bear market, Ethereum gas prices fluctuate. While currently around 12 GWEI (about $0.40 per transaction), during the 2021-2022 bull run, average gas prices soared to 120 GWEI, and peaks reached 305 GWEI! Relying solely on smart contract wallets, which are inherently more gas-intensive, could exacerbate this issue, potentially making base layer Ethereum transactions prohibitively expensive for many users. This would further emphasize the importance of Layer-2 scaling solutions like Polygon and specialized chains like Immutable X.

Historical Ethereum Average Gas Price Per Transaction

The Path Forward: Dialogue and Decentralization

It’s crucial to emphasize that this article isn’t about spreading FUD or dismissing account abstraction. It’s about initiating a vital conversation. The potential benefits of account abstraction are undeniable – improved user experience, enhanced security features, and greater flexibility. However, such a fundamental shift in the Ethereum architecture requires open dialogue and community consensus.

The Ethereum Foundation has immense influence on the direction of the ecosystem. But true decentralization means decisions shouldn’t be made in a vacuum. A public discussion is needed to:

• Validate the Necessity: Is EOA elimination truly necessary to achieve the goals of account abstraction? Are there alternative approaches?
• Establish a Timeline: If EOA removal is the chosen path, what is the proposed timeline for this transition?
• Address Key Concerns: How will security, compatibility, usability, and gas cost implications be mitigated?
• Ensure a Smooth Transition: What support and resources will be provided to developers, wallet providers, and users to adapt to this change?

Let’s Talk Openly, Ethereum Community

The Ethereum Foundation’s intentions are likely driven by a desire to improve the ecosystem. But as Paul Saffo wisely said, “Strong convictions, loosely held.” It’s time for a more open and transparent debate about the future of Ethereum accounts. Let’s ensure that progress towards account abstraction is made with our eyes wide open, and with the collective wisdom of the Ethereum community guiding the way.