2024-05-08
Vitalik Buterin, Ethereum Co-Founder has introduced a new proposal, EIP-7702, aimed at ensuring the long-term sustainability of the protocol's smart contract.
This proposal has gained attention due to Vitalik Buterin's credibility within the Ethereum ecosystem.
The proposal was brought to the forefront by Uniswap Founder, Hayden, who addressed concerns from community members regarding its implications.
Hayden explained that EIP-7702 was developed as a replacement for EIP-3074, which aims to upgrade "EOA" wallets to include smart wallet functionality.
Another proposal, EIP-4337, has been put forth by other Ethereum developers to establish standards for smart contract wallets.
Initially, EIP-3074 was planned for inclusion, but Vitalik Buterin expressed reservations about its long-term implications, especially regarding compatibility with EIP-4337 and vulnerability to quantum computers.
To address these concerns, the 7702 proposal was introduced, which includes new functionalities like third-party transaction sponsorships and privilege de-escalation, allowing users to sign sub-keys with specific permissions that are less powerful than global access to the account.
The proposal will undergo regular community vetting processes, but its benefits have already been highlighted.
Ethereum developers will need to decide whether to adopt the proposal, which would involve converting an existing EIP-3074 workflow.
The GitHub Commit suggests that the conversion process is relatively simple.
It's important to note that the approval and launch of this proposal on the mainnet will not significantly impact the average user.
Additionally, it's worth mentioning that the Vitalik Buterin proposal and the price outlook of Ethereum are not strongly correlated.
Market analyst, Michael van de Poppe, suggest that determining whether the ETH price is near its low is difficult, considering the bear market has persisted for about 2.5 years. Currently, Ethereum's price stands at $3,056.12, experiencing a 0.48% decrease in the past 24 hours.
Based on the BTC/ETH chart, van de Poppe identifies two scenarios to watch out for: a breakout point at the 0.052 level and support between 0.042 to 0.046.
While the Vitalik Buterin proposal may have a positive impact on the price of Ethereum once fully priced into the market, overcoming short-term bearish market conditions remains a significant challenge.
