The co-founder of Ethereum, Vitalik Buterin, has previously stated on Twitter that MPC-based EOAs are fundamentally flawed as they lack the ability to revoke keys. According to him, smart contract wallets are the only way forward. But is this really the case? What sets EOA wallets and smart contract wallets apart?
Externally owned accounts (EOA) have traditionally formed the bulk of wallet accounts on Ethereum. These accounts, controlled by users through private keys, generate a unique wallet address used for receiving funds. Transactions are essentially signed by the private key, which is triggered by an external account. Depending on the storage and usage of the private key, EOA wallets can be categorized into software wallets and hardware wallets.
EOA software wallets protect users’ digital assets with a private key and a seed phrase. After creating a wallet, a user obtains a public key, a unique wallet address for receiving funds, and a private key typically embodied in a 12- or 24-word seed phrase. The seed phrase is crucial for account migration and recovery. Loss of this phrase equates to permanent loss of digital assets. EOA software wallets are cost-effective but vulnerable to hacking, particularly during transaction authorization. They exist in various forms, including browser plug-in wallets and mobile wallets.
EOA hardware wallets store the private key in a secure hardware device, which significantly minimizes the risk of hacking. Transactions are signed on the wallet device without exposing the private key, ensuring enhanced security. However, these wallets are less portable compared to their software counterparts.
Smart contract wallets are controlled by code and managed by a contract account instead of an EOA. They can execute any logic without requiring a seed phrase, though their creation incurs initial deployment costs. A few notable smart contract wallets include:
This platform fuses the convenience of traditional Web2 applications with blockchain’s inherent security and privacy features. Avatar Wallet allows quick wallet creation using common Web2 login methods like Google or Apple accounts. Balancing user convenience with robust security, the wallet remains decentralized, ensuring user privacy.
Argent is a non-custodial, Ethereum-based smart contract wallet, notable for its “Guardians” feature. By binding on-chain accounts of trusted contacts, users can manage and recover their accounts without a seed phrase. However, Argent cannot restore wallet accounts via email and has lower contract code security.
Torus is a non-custodial smart contract wallet that supports login via various OAuth accounts, including Google, Facebook, Twitter, and LinkedIn. It manages keys using a multi-party computation system that assigns keys to independent nodes for login verification. Although it supports a multitude of EVM chains, Torus’ reliance on OAuth compromises its censorship-resistant capabilities.
UniPass is an MPC-based smart contract wallet that utilizes Domain Keys Identified Mail (DKIM) to authenticate reset requests. It allows users to choose a guardian who can assist in social recovery through auxiliary verification. UniPass uses DKIM to protect emails from malicious interference, employing zero-knowledge proof to ensure user privacy during decentralized verification. However, it suffers from delayed response times and lacks cross-platform functionality.
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