Smart contract wallets vs. externally owned accounts (EOAs)
Most wallets are externally owned accounts (EOAs) that are controlled by a user and accessed via a private key.
A smart contract wallet (a.k.a. smart wallet) is managed by the code in a smart contract rather than by a private key. This code enables advanced functionality for users, such as multisig security, key rotation, account recovery, transaction bundling, gasless transactions, social or email login and fiat-to-crypto onramps.
Let’s explore how smart wallets are emerging as a foundational consumer-facing web3 product that can accelerate mainstream adoption of tokenized assets and web3 applications.
If you would like to dive deeper into smart wallet functionality, check out the Sequence Wallet.
1. Better security for users
Because funds are stored in a smart contract, a smart contract wallet can be controlled by multiple keys — all while remaining non-custodial.
This multi-signature design allows keys to be added, removed and replaced. With EOAs, on the other hand, the private key is a single point of failure.
Decentralized two-factor authentication and social account recovery add additional layers of security to smart wallets.
Smart wallets also provide a pathway to quantum-safe cryptography in the future, without requiring users to migrate their funds to a new wallet.
2. Transaction bundling
Smart wallets can bundle multiple transactions into a single transaction, abstracting away the token approval process to allow for lower fees and a smoother user experience.
Users only need to perform a single click for cheaper gas and a streamlined experience, rather than undertaking a more complex and costly process to approve multiple transactions.
3. Zero fees for users
Transaction bundling saves on fees but smart contract wallets can also be programmed to enable gasless transactions.
Developers can sponsor transactions for their users, so that users will never have to pay gas fees to use their game or dapp.
4. Better user experience
With social or email login, users can create a smart contract wallet in just two clicks, without the need to download an app or use a seed phrase.
The option to access fiat-to-crypto onramps to buy crypto and NFTs with debit and credit cards makes purchasing digital assets simple and seamless and brings greater convenience to users.
Now start building
We’ve taken a quick look at the benefits of implementing smart contract wallets.
The Sequence Wallet has been developed to provide these benefits and much more.
Check out our Github or join our Discord to get help with implementing the Sequence Wallet in your web3 game or dapp.
Sequence is the leading all-in-one development platform for integrating web3 into games. Onboard, monetize, grow, and retain players with Sequence’s award-winning technology. From collectibles and ownable rewards to fully on-chain experiences, Sequence’s easy-to-integrate platform solves blockchain complexities, so developers can focus on creative execution and delivering amazing player experiences. Trusted by hundreds of games, thousands of developers, and powering millions of users, Sequence is backed by Take-Two Interactive, Ubisoft, Xsolla, Bitkraft, Brevan Howard, Coinbase, Polygon, and more. To learn more, please visit: https://sequence.xyz/
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Written by
Robert Guenette
Product Marketing DirectorRelated posts
