Co-founder of Safe: "Everyone on Ethereum Will Transition to Smart Accounts"

Ethereum Improvement Proposal, known as EIP-7702, has the potential to accelerate the adoption of smart accounts by simplifying the process for current users to upgrade their wallets, according to Safe co-founder Lukas Schor.

"EIP-7702 will be a turning point for account abstraction," Schor stated at the Ethereum Devcon 2024 event in Bangkok, Thailand, on November 13.

He noted that, despite expectations, widespread adoption of account abstraction or smart accounts hasn't yet occurred, primarily due to the challenge of persuading users to migrate their existing wallets and the focus on attracting new users rather than converting current ones.

Schor explained that EIP-7702 will enable users to transform their existing wallets or accounts into smart accounts.

"I believe that in five years, or maybe sooner, every account on Ethereum will be a smart account," he predicted.

The Ethereum improvement proposal introduces a new transaction type that adds a field for externally owned accounts (EOA), allowing them to handle smart functions without altering their structure. This also enables wallet providers like MetaMask to offer smart account features.

Smart accounts address the "wallet trilemma" by optimizing for non-custodial control, convenience, and security, rather than just two of these aspects, Schor added.

"If we transition people to smart accounts, it will unlock everyone's potential because they won't have to choose. They can have all three," emphasized Schor.

Schor mentioned that initial adoption will occur through subscription settings in existing wallets, with gradual progress to encourage upgrades, leading to widespread adoption over five years.

He also commented on future developments and benefits, including unified balances across blockchains, integration with traditional financial systems, and improved compatibility between networks like Ethereum, Bitcoin, and Solana.

"Users should have only one account on the blockchain and interact with these different networks as if they were a single entity, accessible via smartphones," Schor stated.

He compared smart accounts to traditional bank accounts but highlighted additional blockchain benefits, such as the absence of centralized control and an "escape hatch" if things go wrong and users want to withdraw their funds.

Safe Wallet, previously known as Gnosis Wallet, has a total locked value of $60 billion and 10 million accounts, according to Schor.