# Smart accounts: programmable authorization, recovery and gas Smart accounts use programmable logic to authorize actions, which can enable recovery rules, transaction batching and sponsored gas. ERC-4337 packages user operations through an EntryPoint; EIP-7702 lets a key-controlled account delegate execution to code. These mechanisms do not automatically make every wallet recoverable or every transaction free. Evidence: [ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md); [EIP-7702: Set Code for EOAs](https://raw.githubusercontent.com/ethereum/EIPs/ac912ca6a9685590345dd8e5736cda75976d0131/EIPS/eip-7702.md); [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md) Canonical: https://degreesofsatoshi.com/encyclopedia/ethereum-smart-accounts/ Published: 2026-10-02 Substantively modified: 2026-10-02 Independently verified by an automated reviewer: 2026-10-02T15:10:23.134Z Data current through: 2026-10-02 AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied. ## Key facts - **ERC-4337:** UserOperations reach an EntryPoint through bundled transactions ([ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md)) - **Paymaster:** Can agree to cover gas subject to its rules ([ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md)) - **EIP-7702:** Persistent code delegation for an externally owned account ([EIP-7702: Set Code for EOAs](https://raw.githubusercontent.com/ethereum/EIPs/ac912ca6a9685590345dd8e5736cda75976d0131/EIPS/eip-7702.md)) ## Authorization can be a rule rather than one unrestricted key A programmed account can require several signatures, impose spending conditions or define a recovery procedure. Those features are possibilities implemented by the account’s code, not automatic promises of the phrase smart wallet. For example, a small purchase might use one signer while changing recovery settings requires two. The convenience and failure modes depend on exactly who can satisfy or modify those rules. Evidence: [ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md); [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md) ## ERC-4337 adds a route for user operations A user operation describes an intended action under the account’s validation logic. A bundler includes operations in a transaction calling an EntryPoint contract, which coordinates validation and execution. In an illustrative sponsored onboarding flow, a paymaster agrees to cover the user’s operation. The user may not need a native ETH balance for that interaction, but the bundling transaction still consumes gas paid through the arrangement. Evidence: [ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md); [Gas and fees](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/gas/index.md) ## EIP-7702 is a distinct mechanism that can work alongside it EIP-7702 permits an externally owned account to authorize delegated code while retaining transaction-origination capability. It is not the same object or mechanism as an ERC-4337 user operation. A wallet can use such code to support an approval and the subsequent action together. The delegation persists until changed or cleared, so authorizing it is more consequential than granting one temporary website connection. Evidence: [EIP-7702: Set Code for EOAs](https://raw.githubusercontent.com/ethereum/EIPs/ac912ca6a9685590345dd8e5736cda75976d0131/EIPS/eip-7702.md); [Ethereum protocol upgrade history](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/ethereum-forks/index.md) ## Recovery and convenience introduce their own conditions If recovery requires designated guardians, their availability and authority become part of account security. If sponsorship ends, the application’s former no-gas experience may no longer be available. Delegate code also executes with extensive account capabilities. A polished recovery screen does not establish that the implementation is correct, that upgrades are restricted or that every asset and application supports the account. Evidence: [ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md); [EIP-7702: Set Code for EOAs](https://raw.githubusercontent.com/ethereum/EIPs/ac912ca6a9685590345dd8e5736cda75976d0131/EIPS/eip-7702.md); [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md) ## Questions ### Do smart accounts eliminate private keys? Not necessarily. They change how authority can be checked; implementations may still use keys alongside multiple signers, recovery or other rules. Evidence: [ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md); [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md) ### Are sponsored transactions actually free? A sponsor pays or arranges payment for execution. It can impose conditions or charge through another mechanism, and the network still consumes resources. Evidence: [ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md); [Gas and fees](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/gas/index.md) ### Is EIP-7702 the same as ERC-4337? No. EIP-7702 changes account delegation at the protocol level, while ERC-4337 defines user operations, bundlers and EntryPoint-based processing. Evidence: [EIP-7702: Set Code for EOAs](https://raw.githubusercontent.com/ethereum/EIPs/ac912ca6a9685590345dd8e5736cda75976d0131/EIPS/eip-7702.md); [ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md) ## Claims and scope ### ethereum-smart-accounts-quick-answer Smart accounts use programmable logic to authorize actions, which can enable recovery rules, transaction batching and sponsored gas. ERC-4337 packages user operations through an EntryPoint; EIP-7702 lets a key-controlled account delegate execution to code. These mechanisms do not automatically make every wallet recoverable or every transaction free. Scope: {"collection":"ethereum","dataAsOf":"2026-10-02","blockHeight":null} ### ethereum-smart-accounts-fact-erc-4337 ERC-4337: UserOperations reach an EntryPoint through bundled transactions Scope: {"collection":"ethereum","dataAsOf":"2026-10-02","blockHeight":null} ### ethereum-smart-accounts-fact-paymaster Paymaster: Can agree to cover gas subject to its rules Scope: {"collection":"ethereum","dataAsOf":"2026-10-02","blockHeight":null} ### ethereum-smart-accounts-fact-eip-7702 EIP-7702: Persistent code delegation for an externally owned account Scope: {"collection":"ethereum","dataAsOf":"2026-10-02","blockHeight":null} ## Sources - [ERC-4337: Account Abstraction Using Alt Mempool](https://raw.githubusercontent.com/ethereum/ERCs/583335b7912e51b1ea515bb662532dd29b27e786/ERCS/erc-4337.md) — Ethereum Request for Comments. Defines user operations, bundlers, programmable validation and sponsored gas settlement. Locator: Abstract; definitions; UserOperation; EntryPoint; paymasters. Retrieved: 2026-10-02T14:35:55.049363+00:00. - [EIP-7702: Set Code for EOAs](https://raw.githubusercontent.com/ethereum/EIPs/ac912ca6a9685590345dd8e5736cda75976d0131/EIPS/eip-7702.md) — Ethereum Improvement Proposals. Defines persistent EOA code delegation, continued transaction origination and the account-wide consequences of delegate code. Locator: Abstract; persistence of code delegation; transaction origination; security considerations. Retrieved: 2026-10-02T14:35:51.249142+00:00. - [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md) — ethereum.org contributors. Supports contract code/state, deterministic rules, illustrative vending logic, external-data limits and multisignature access. Locator: What is a smart contract; a digital vending machine; limitations; multisig. Retrieved: 2026-10-02T14:35:40.398357+00:00. - [Gas and fees](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/gas/index.md) — ethereum.org contributors. Supports gas units, ETH/gwei units, base/priority fees, resource limits and charges for executed failed transactions. Locator: How are gas fees calculated; base fee; gas limit. Retrieved: 2026-10-02T14:35:40.393022+00:00. - [Ethereum protocol upgrade history](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/ethereum-forks/index.md) — ethereum.org contributors. Records shipped Pectra changes including EIP-7702 and EIP-7251; supports dated historical upgrade context. Locator: Prague-Electra (Pectra); Paris (The Merge); London. Retrieved: 2026-10-02T14:42:49.753070+00:00. ## Revision history - 2026-10-02: First publication after primary-source research and independent automated verification. ## Cite this entry Degrees of Satoshi editorial project. “Smart accounts: programmable authorization, recovery and gas.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/ethereum-smart-accounts/