Understanding Ethereum’s EIP-3074: Enhancing Transaction Flexibility and Security



Ethereum Improvement Proposal (EIP) 3074 is poised to bring significant enhancements to the Ethereum blockchain, particularly in terms of transaction flexibility and security. This proposal introduces two new Ethereum opcodes, AUTH and AUTHCALL, which allow externally owned accounts (EOAs) to delegate transaction execution to smart contracts, thereby enabling a range of innovative functionalities.


Key Features and Benefits

Sponsored Transactions:

One of the primary advantages of EIP-3074 is the introduction of sponsored transactions. This feature allows third parties to cover gas fees on behalf of users, eliminating the need for users to hold Ether (ETH) in their wallets. This is especially beneficial for new users, making it easier for them to interact with decentralized applications (dApps) without the complexity of managing gas fees (ChainSafe) (thirdweb).

Batch Transactions:

EIP-3074 facilitates the execution of multiple operations within a single transaction. This batching capability not only streamlines the transaction process but also reduces costs and improves efficiency. For instance, users can approve and transfer tokens in one go, rather than in multiple steps (ChainSafe) (Unchained).

Enhanced User Experience:

By leveraging the AUTH and AUTHCALL instructions, developers can create more user-friendly applications. These instructions enable EOAs to function similarly to smart contract wallets, thus simplifying complex transaction processes and improving overall user experience. This enhancement makes Ethereum more accessible, potentially increasing adoption rates (thirdweb) (Unchained).

Account Recovery Mechanisms:

EIP-3074 also supports advanced account recovery options. Users who lose access to their private keys can employ invoker contracts to recover assets, utilizing social recovery mechanisms and other security protocols to ensure funds are protected (ChainSafe) (Unchained).


Security Considerations

Despite its benefits, EIP-3074 brings several security challenges that need to be addressed. The introduction of invoker contracts, which execute transactions on behalf of users, raises potential risks if these contracts are not securely implemented. To mitigate these risks, EIP-3074 includes several security measures such as multi-signature schemes, time-locked authorizations, and a phishing protection registry to verify the authenticity of invoker contracts (thirdweb) (ImmuneBytes).

Comparison with EIP-4337

EIP-3074 is often compared to another account abstraction proposal, EIP-4337. While both aim to enhance the functionality of EOAs, they do so in different ways. EIP-3074 focuses on extending EOAs’ capabilities without requiring asset migration, offering a more straightforward approach. In contrast, EIP-4337 proposes a comprehensive overhaul of account abstraction, which includes creating new types of accounts and requires migrating assets to these smart accounts (ChainSafe) (Unchained).

Implementation Timeline

As of now, EIP-3074 is in the proposal stage and has garnered significant attention within the Ethereum community. The proposal is expected to be part of Ethereum’s upcoming Pectra upgrade, slated for late 2024. This upgrade will incorporate various enhancements aimed at improving scalability, security, and user experience across the Ethereum network (ImmuneBytes).



EIP-3074 represents a significant step forward in enhancing Ethereum’s transaction capabilities and user experience. By enabling sponsored transactions, batch operations, and improved security protocols, this proposal addresses some of the key challenges faced by Ethereum users and developers. As the Ethereum community continues to refine and discuss this proposal, its implementation is anticipated to bring substantial benefits to the ecosystem, paving the way for broader adoption and more innovative applications.