Vitalik Buterin and co-authors have introduced Ethereum Improvement Proposal (EIP) 7702, offering an alternative to EIP-3074. This innovative proposal enables externally owned accounts (EOAs) to temporarily function as smart contract wallets during transactions, before reverting to their original state.

EIP-7702 boasts key features that enhance account abstraction within the Ethereum network. It introduces a new transaction type, allowing EOAs to temporarily transform into smart contract wallets, and then return to their original form. This proposal aims to be compatible with the broader standard ERC-4337, considered the "endgame in account abstraction."

The new transaction type includes fields for contract code and signatures, providing the same functions as EIP-3074, such as batch and sponsored transactions. Additionally, it enables EOAs to temporarily become contracts, facilitating their inclusion in ERC-4337 packages in a manner compatible with the existing EntryPoint. Hayden Adams, Uniswap's founder, has joined the discussion, noting that EIP-7702 offers better compatibility with quantum resistance and ERC-4337.

Account abstraction revolutionizes wallet addresses, allowing them to function as smart contracts and run complex features like multi-factor authentication, social recovery wallets, and flexible token transactions. As the Ethereum community evaluates EIP-7702, it may redefine how account abstraction is implemented in future network updates.