network that seeks to fundamentally change the concept of "account control." In the current Ethereum setup, only the logic of smart contracts is executed via the Ethereum Virtual Machine (EVM), while the validation logic of user wallets, which includes aspects like noncash and signatures, is not processed through the EVM. This proposal aims to change that by enabling the execution of validation logic for user wallets through the EVM code.  This alteration brings about several important advantages:  Multi-Signature and Social Recovery Wallets: This enhancement allows the implementation of wallets with multiple signatures and recovery mechanisms through smart contracts.  Simplified and Efficient Signature Algorithms: Signature algorithms such as Schnarr and BLS can be utilized, making the process of signing transactions more efficient.  Quantum-Resistant Algorithms: The proposal allows for the integration of algorithms that are secure against quantum computing attacks, such as Lamport and Winter Nitz.  Upgradeability: The proposed changes pave the way for easier upgrades in the future.  Currently, it is feasible to achieve these functionalities using AI-powered wallets. However, the Ethereum protocol's reliance on externally owned accounts (EOAs) protected by ECDSA poses challenges. Each user operation requires a transaction from an EOA, which consumes a significant amount of gas. Users need to either manage separate EOAs for payment and balance management or trust centralized intermediaries.  EIP 2938 introduces a solution by enabling transactions to originate from contracts instead of EOAs. The contract contains validation and fee payment logic, which miners validate. However, this requires substantial protocol modifications, and the current focus of protocol developers is primarily on integration and scalability.  The ERC-4337 standard offers a solution to achieve similar benefits without extensive protocol changes.  How Does This Standard Work?  Rather than modifying the logic of the consensus layer, ERC-4337 replicates the functionality of user operation mempools at a higher layer. Users submit UserOperations containing intended actions, along with signatures and validation data. Miners or bundlers can organize sets of UserOperations into a "bundle transaction," which is added to an Ethereum block. Bundlers cover the bundle transaction fee in ETH, which is later reimbursed through fees paid during individual UserOperation executions.  Bundlers prioritize UserOperations based on fee logic similar to miners. A UserOperation resembles a transaction and includes ABI-encoded fields such as sender, nonce, signatures, initCode, callData, and more, all related to gas and fees.  Further details are specified in ERC-4337. Wallets, which are essentially smart contracts, must have two key functions: validateUserOp and an execution function. Validation involves checking signatures and nonces, paying fees, increasing nonces upon success, and raising exceptions on failure. The execution function interprets call data as instructions for wallet actions.  To simplify wallet logic, complex smart contract processes for security are carried out in a global contract called the entry point. The entry point is only callable with require(msg.sender == ENTRY_POINT) in validateUserOp and execution functions, ensuring that trusted entry is the sole entity authorized to execute actions or payments. The entry point also handles wallet creation using initCode if the wallet doesn't exist.  These limitations are in place to guard against DoS attacks. Users bear the cost for unique constraints. Mempools and bundlers employ similar logic to decide whether to retain or forward UserOperations.  Design Features of Mempools:  Mempools protect against DoS attacks by retaining UserOperations until the associated wallet changes. This mechanism necessitates users to pay higher gas fees if they intend to execute additional actions quickly. Replaceability is facilitated by offering the option to submit a new UserOperation with a higher fee, discouraging attackers from executing multiple operations in rapid succession.  This design ensures flexibility and security while preventing misuse. It also caters to scenarios involving control logic or shared logic through side contracts. The restrictions mitigate DoS attacks and ensure that legitimate UserOperations remain affordable and efficient.

network that seeks to fundamentally change the concept of "account control." In the current Ethereum setup, only the logic of smart contracts is executed via the Ethereum Virtual Machine (EVM), while the validation logic of user wallets, which includes aspects like noncash and signatures, is not processed through the EVM. This proposal aims to change that by enabling the execution of validation logic for user wallets through the EVM code.  This alteration brings about several important advantages:  Multi-Signature and Social Recovery Wallets: This enhancement allows the implementation of wallets with multiple signatures and recovery mechanisms through smart contracts.  Simplified and Efficient Signature Algorithms: Signature algorithms such as Schnarr and BLS can be utilized, making the process of signing transactions more efficient.  Quantum-Resistant Algorithms: The proposal allows for the integration of algorithms that are secure against quantum computing attacks, such as Lamport and Winter Nitz.  Upgradeability: The proposed changes pave the way for easier upgrades in the future.  Currently, it is feasible to achieve these functionalities using AI-powered wallets. However, the Ethereum protocol's reliance on externally owned accounts (EOAs) protected by ECDSA poses challenges. Each user operation requires a transaction from an EOA, which consumes a significant amount of gas. Users need to either manage separate EOAs for payment and balance management or trust centralized intermediaries.  EIP 2938 introduces a solution by enabling transactions to originate from contracts instead of EOAs. The contract contains validation and fee payment logic, which miners validate. However, this requires substantial protocol modifications, and the current focus of protocol developers is primarily on integration and scalability.  The ERC-4337 standard offers a solution to achieve similar benefits without extensive protocol changes.  How Does This Standard Work?  Rather than modifying the logic of the consensus layer, ERC-4337 replicates the functionality of user operation mempools at a higher layer. Users submit UserOperations containing intended actions, along with signatures and validation data. Miners or bundlers can organize sets of UserOperations into a "bundle transaction," which is added to an Ethereum block. Bundlers cover the bundle transaction fee in ETH, which is later reimbursed through fees paid during individual UserOperation executions.  Bundlers prioritize UserOperations based on fee logic similar to miners. A UserOperation resembles a transaction and includes ABI-encoded fields such as sender, nonce, signatures, initCode, callData, and more, all related to gas and fees.  Further details are specified in ERC-4337. Wallets, which are essentially smart contracts, must have two key functions: validateUserOp and an execution function. Validation involves checking signatures and nonces, paying fees, increasing nonces upon success, and raising exceptions on failure. The execution function interprets call data as instructions for wallet actions.  To simplify wallet logic, complex smart contract processes for security are carried out in a global contract called the entry point. The entry point is only callable with require(msg.sender == ENTRY_POINT) in validateUserOp and execution functions, ensuring that trusted entry is the sole entity authorized to execute actions or payments. The entry point also handles wallet creation using initCode if the wallet doesn't exist.  These limitations are in place to guard against DoS attacks. Users bear the cost for unique constraints. Mempools and bundlers employ similar logic to decide whether to retain or forward UserOperations.  Design Features of Mempools:  Mempools protect against DoS attacks by retaining UserOperations until the associated wallet changes. This mechanism necessitates users to pay higher gas fees if they intend to execute additional actions quickly. Replaceability is facilitated by offering the option to submit a new UserOperation with a higher fee, discouraging attackers from executing multiple operations in rapid succession.  This design ensures flexibility and security while preventing misuse. It also caters to scenarios involving control logic or shared logic through side contracts. The restrictions mitigate DoS attacks and ensure that legitimate UserOperations remain affordable and efficient.