Ethereum is on the brink of a significant upgrade that could make wallets smarter, safer, and more user-friendly. According to Lukas Schor, the co-founder of Safe Wallet (formerly Gnosis Wallet), Ethereum’s future lies in a concept called "smart accounts." Schor spoke at the Ethereum Devcon 2024 event in Bangkok, Thailand, on Nov. 13, where he discussed how an Ethereum Improvement Proposal (EIP) called EIP-7702 could lead the way.
Smart accounts aim to solve the “wallet trilemma”—a problem with existing Ethereum wallets where users often have to sacrifice one of three important features: security, convenience, or non-custodial control. Non-custodial wallets mean that users hold the private keys to their assets, rather than relying on a third party. Smart accounts, however, promise to offer all three benefits without compromise.
While account abstraction—an upgrade that enables more advanced, programmable wallets—has long been seen as the next step for Ethereum, it hasn’t gained wide adoption yet. Schor attributes this to the challenges of convincing current wallet users to migrate and the emphasis on onboarding new users rather than upgrading existing accounts. EIP-7702 aims to change that by making it easy for users to convert their current Ethereum wallets into smart accounts, unlocking new possibilities for more secure, flexible, and user-friendly interactions on the blockchain.
"EIP-7702 will be the tipping point for account abstraction," Schor said, adding that he envisions a future where every Ethereum account operates as a smart account—likely within five years. This proposal introduces a new transaction type, allowing regular wallets to adopt smart features without altering their core structure. Popular wallet providers like MetaMask could then roll out these features, making the upgrade accessible and seamless.
Smart accounts also hold the potential to unify balances across multiple blockchains, link up with traditional finance systems, and improve interoperability between various networks, like Ethereum, Bitcoin, and Solana. Schor explains that in the future, users could have a single blockchain account, interacting with different networks as if they were part of one unified system. He expects that smartphone technology will play a key role in making this vision a reality.
Comparing smart accounts to traditional bank accounts, Schor highlights a major advantage: blockchain accounts aren’t controlled by a centralized authority, and users retain an “exit hatch” to withdraw funds if necessary. With $60 billion in total value locked and 10 million accounts, Safe Wallet is leading the way in pioneering these technologies, making Schor’s predictions a compelling look at the potential of Ethereum’s evolution.
