One of the most exciting developments in the Ethereum ecosystem is the emergence of supercharged externally owned accounts (EOAs). These are smart contract wallets that can interact with other contracts and protocols without requiring a separate transaction fee. Instead, they use meta-transactions that are sponsored by relayers or other parties who benefit from the wallet’s activity.
This innovation has several advantages for both users and developers. For users, it means that they can enjoy a seamless and user-friendly experience without having to worry about gas fees, network congestion, or wallet management. They can also access a variety of services and incentives from different protocols and platforms that integrate with supercharged EOAs.
For developers, it means that they can attract and retain more users by offering them a frictionless and cost-effective way to use their applications. They can also leverage the composability and interoperability of the Ethereum Virtual Machine (EVM) to create new and innovative features and functionalities.
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EOA’s from FooBar’s Standpoint
Smart contract wallets are welcome infrastructure, but EOAs remain 99.9% of all addresses. Several reasons for this – cheaper gas, familiarity, wallet support, counterfactual multichain addresses, compatibility with msg.sender == tx.origin checks, compatibility with EIP-712 message signing.
Can smart contract wallets address these problems in due time? Potentially! But this will be a multiyear rollout process before there’s even sufficient maturity for most users to consider migrating. In the meantime, the path-dependent blockchain wars rage on and the EVM must supercharge EOAs to remain an attractive option. Far from competing, light clients points out that EIP-3074 makes EOAs compatible with 4337.
EOAs are 99.9% of all used Ethereum addresses. From a censorship resistance and permissionless perspective, creating an EOA is a trivial off-chain activity which can take place on any device, doesn’t require connectivity and doesn’t require any funds or sponsor. Creating an account with a contract wallet requires either a funded EOA to start from or a sponsor.
Counterpoints
“We should be moving beyond EOAs, not enshrining them even further” – This is a mindset of jealousy not growth. I hope smart contract wallets thrive, but dangerous to do so by handicapping EOA functionality and fearfully blocking improvements.
Nobody would suggest crippling existing EOA functionality so SC wallets can grow; likewise, we should not reject EOA improvements proposals so SC wallets can grow. EOAs were already enshrined in the core protocol on day 1, improving them is just that – an improvement not an enshrinement.
Supercharged EOAs are not only beneficial for the individual actors in the ecosystem, but also for the network as a whole. By reducing the transaction costs and increasing the usability of the EVM, supercharged EOAs will drive more adoption and activity on the network, creating a positive feedback loop that will strengthen the network effects and security of the EVM. This will make it harder for competing platforms to challenge Ethereum’s dominance and leadership in the decentralized space.
Supercharged EOAs are a game-changer for the Ethereum ecosystem. They will save millions of dollars for users and developers and cement the EVM’s network effects. They will also enable new and exciting possibilities for innovation and collaboration in the decentralized web.
Why a Spot ETF is a Game-Changer for Ethereum
Ethereum, the second-largest cryptocurrency by market capitalization, has been on a remarkable rally in the past year, reaching new all-time highs and gaining more adoption and recognition from investors, developers, and regulators.
However, one of the main challenges that Ethereum faces is the lack of accessibility and liquidity for retail investors who want to gain exposure to its price movements without having to deal with the technical and regulatory hurdles of buying and storing it directly.
This is where a spot ETF, or exchange-traded fund, comes in. A spot ETF is a type of investment vehicle that tracks the price of an underlying asset, such as Ethereum, and allows investors to buy and sell shares of the fund on a regulated stock exchange, just like any other stock.
A spot ETF differs from a futures-based ETF, which tracks the price of futures contracts that are derived from the underlying asset and may not reflect its true value due to factors such as contango, backwardation, and rollover costs.
A spot ETF for Ethereum would be a game-changer for several reasons. First, it would provide a simple and convenient way for retail investors to access the Ethereum market without having to worry about the complexities and risks of buying and storing it themselves. This would lower the barriers to entry and increase the demand and liquidity for Ethereum, which could boost its price and adoption.
Second, it would provide a more accurate and transparent representation of the Ethereum market than a futures-based ETF, which may suffer from tracking errors and discrepancies due to the nature of futures contracts. A spot ETF would reflect the actual spot price of Ethereum at any given time, which would benefit both investors and regulators who want to have a clear picture of the market dynamics.
Third, it would enhance the credibility and legitimacy of Ethereum as an asset class, as it would attract more institutional investors who are looking for regulated and compliant ways to invest in cryptocurrencies. A spot ETF would also signal that regulators are becoming more comfortable and supportive of Ethereum and its potential to transform various sectors of the economy through its decentralized applications.
A spot ETF for Ethereum would be a game-changer for the cryptocurrency industry, as it would provide a more accessible, accurate, and credible way for investors to participate in the Ethereum market. While there are still some regulatory and technical challenges to overcome before such a product can be launched, there is no doubt that the demand and interest for it are growing rapidly. A spot ETF for Ethereum would not only benefit Ethereum itself, but also the entire ecosystem of developers, users, and innovators who are building on its platform.