EIP-3074 is a pivotal Ethereum improvement proposal that grants Externally Owned Accounts (EOAs) the ability to perform complex operations, much like smart contract accounts. This upgrade unlocks numerous new application scenarios, significantly enhancing both user experience and security.
What is EIP-3074?
EIP-3074 allows an EOA to delegate control to a specific smart contract, known as an Invoker contract. This enables the EOA to perform multiple operations in a single transaction, a capability previously exclusive to contract-based accounts.
Before EIP-3074, an EOA could typically only perform one action per transaction—such as approving an ERC-20 token or executing a swap on Uniswap. With EIP-3074, users can now batch multiple actions, enabling more efficient and sophisticated interactions with decentralized applications (DApps).
Enhanced User Experience and Security
EIP-3074 dramatically improves usability while maintaining security. Key benefits include:
- Batch Operations: Users can combine multiple actions into a single transaction, reducing the need for repeated approvals and lowering gas costs.
- No Native ETH for Fees: Users can authorize transactions without holding ETH for gas fees, as Relayers can submit transactions on their behalf.
- Improved Authorization: Instead of pre-approving large token amounts indefinitely, users can approve only what is needed for specific operations, reducing risk.
How EIP-3074 Works: The Invoker Contract
An Invoker contract is a smart contract authorized by an EOA to execute operations on its behalf. The EOA signs a message specifying the Invoker address and the authorized actions (commit). The signature is then relayed to the blockchain, often by a Relayer, though users can also submit it themselves.
Execution Flow:
- Signing: Alice signs a message with her EOA private key, specifying the Invoker and actions.
- Relaying: The signed message is sent to the Invoker contract via a Relayer.
- Verification: The Invoker verifies the signature.
- Execution: The Invoker performs the authorized actions on behalf of Alice’s EOA.
⚠️ Important: The EOA’s nonce remains unchanged during Invoker operations. To prevent replay attacks, Invoker contracts must implement their own nonce mechanism.
Key Use Cases of EIP-3074
Batch Calls
Users can execute multiple operations in one transaction, streamlining interactions with DApps. This reduces the number of signatures required and optimizes gas usage.
Session Keys
Users can delegate limited account control to third parties (e.g., bots or services) under specific conditions. For example, a Telegram bot could be authorized to execute trades on Uniswap with daily limits.
Native ETH Permit
EIP-3074 enables native ETH transfers via signature-based approvals, similar to ERC-20 permit functionality.
Limit Orders
Users can create limit orders that execute automatically when conditions are met. Unlike traditional DEX limit orders, no pre-approval is required, reducing upfront risks.
Social Recovery
If a user loses their private key, authorized parties can recover assets from the EOA using pre-signed EIP-3074 messages. This method transfers assets rather than restoring account control.
Impact on Current Authorization Models
Replacing Approve/Permit
Traditional DApps require users to pre-approve token allowances, often in excessive amounts, to facilitate smooth operations. This poses security risks, as malicious contracts can drain funds.
EIP-3074 offers a safer alternative:
- Atomic Operations: Approvals and actions are bundled into a single transaction, ensuring they succeed or fail together.
- Transparency: Users see exactly what operations will be performed before signing, reducing the risk of fraudulent approvals.
- No Pre-Approvals: Users no longer need to grant indefinite allowances, minimizing exposure to exploits.
While EIP-3074 doesn’t eliminate fraud entirely, it provides users with clearer information to make informed decisions.
Challenges and Considerations
EOA Nonce Management
EIP-3074 signatures include the EOA’s nonce. If the nonce changes (e.g., due to a separate transaction), all existing EIP-3074 authorizations become invalid. This can complicate use cases like session keys and social recovery.
Invoker contracts must implement custom nonce systems to mitigate replay risks. For individual users, wallets can manage EIP-3074 signatures like pending transactions.
User-Initiated Transactions
If users submit EIP-3074 signatures themselves, they must:
- Sign twice (for the authorization and the transaction).
- Adjust the nonce in the EIP-3074 signature to account for the pending transaction.
These complexities highlight the advantage of using Relayers for submission.
Frequently Asked Questions
What is EIP-3074?
EIP-3074 allows Ethereum EOAs to delegate control to Invoker contracts, enabling batch operations, automated executions, and more without pre-approvals.
How does EIP-3074 improve security?
It replaces indefinite token allowances with atomic, transaction-specific approvals. Users see exactly what actions will be performed, reducing the risk of fraudulent exploits.
Can EIP-3074 be used for social recovery?
Yes, it allows authorized parties to recover assets from a lost EOA using pre-signed messages. However, account control itself cannot be restored.
Does EIP-3074 require users to hold ETH for gas?
No, Relayers can submit transactions on behalf of users, allowing gas-free interactions.
What are the limitations of EIP-3074?
It relies on Invoker contracts properly implementing nonce systems to prevent replay attacks. Nonce management can also be complex for delegated use cases.
Will EIP-3074 replace existing approval methods?
It has the potential to replace both approve and permit models by offering a more secure and user-friendly alternative. However, widespread adoption depends on DApp integration.
Conclusion
EIP-3074 represents a significant leap forward for Ethereum usability and security. By enabling EOAs to perform complex operations through Invoker contracts, it reduces reliance on risky pre-approvals and opaque permit signatures. While challenges like nonce management remain, the proposal lays the foundation for a more intuitive and secure DeFi ecosystem.
For developers and users alike, EIP-3074 offers a glimpse into a future where wallet interactions are both powerful and safe. 👉 Explore advanced Ethereum strategies to stay ahead in the evolving blockchain landscape.