Ethereum is evolving fast, and two important updates leading the way are ERC-4337 and ERC-7702. These new standards are changing how wallets work, making them smarter, more secure, and easier to use.

ERC-4337 is already live, powering smart wallets with features like gasless transactions and social recovery. ERC-7702, proposed by Ethereum co-founder Vitalik Buterin, takes it further by upgrading traditional wallets with smart features, without changing your wallet address. But what’s the difference between them? And which one should you use?

In this guide, we’ll break it all down in simple terms—so whether you’re building a dApp or just curious about the future of Web3 wallets, you’re in the right place.

What is ERC-4337?

ERC-4337 is a new way of using wallets on Ethereum. Instead of relying on the traditional kind of wallet, ERC-4337 lets you use smart contract wallets, which can follow rules and do things automatically.

With this upgrade, your wallet can have features like social recovery, two-factor login, and paying gas fees with any token or even having someone else pay them for you. The best part? It works without changing how Ethereum itself is built. It’s like adding powerful upgrades to your wallet without messing with the engine underneath.  Over 730,000 ERC‑4337 smart wallets have already been deployed across Ethereum and major Layer 2 networks, showcasing the real shift toward smarter, safer wallet experiences 

How ERC-4337 Works

For our beginners out there, here’s a simplified look at how ERC-4337 actually works without the jargon overload. At its core, ERC-4337 is all about making wallets smarter. Instead of relying on the traditional type of wallet that’s tied to a single private key (which can be lost or stolen), this standard lets you use smart contract wallets, kind of like programmable wallets with superpowers.

Here’s how it works in plain terms:

1. You decide what you want to do

For example, you want to send tokens, mint an NFT, or pay for something in a dApp

2. Your wallet creates a “UserOperation”

Think of this as a little package that contains everything needed to do that action, like your wallet address, the details of the action, and a signature to prove it’s really you.

3. A helper called a “Bundler” picks it up

The Bundler is like a delivery driver. It collects your actions (and others like it), wraps them into a single transaction, and sends them to Ethereum.

4. The “EntryPoint” smart contract processes everything

This contract acts like Ethereum’s receptionist; checking if everything is correct, then passing it through for execution.

5. Done!

Your action is completed, and gas fees can be paid by you, with any token, or even by someone else (like the app you’re using).

What Can ERC-4337 Do?

ERC-4337 brings some serious upgrades to how wallets work on Ethereum. Here’s what it makes possible:

Easy Wallet Recovery

No more panicking over lost seed phrases. With ERC-4337, your wallet can be recovered with help from trusted friends, family, or even backup devices.

Custom Logins

Instead of always using a private key, wallets can now let you log in with things you already use, like fingerprint or Face ID, email or social accounts, passkeys or secure devices. It’s like logging into your usual apps, but for crypto

Gasless Transactions

Normally, every Ethereum action needs ETH for gas fees. With ERC-4337, apps can cover that fee for you or let you pay with other tokens like USDC.

What about ERC-7702?

ERC-7702 is a recent Ethereum proposal that gives regular wallets (like MetaMask) temporary smart contract powers—without fully converting them. It introduces “Type 4 transactions”, which let your wallet act like a smart contract for a single transaction, then return to its normal state.

Since Ethereum’s Pectra upgrade in May 2025, over 26,000 wallets have adopted this feature, enabling smarter wallet behavior with minimal complexity. Think of it as your wallet borrowing a brain for one task, then handing it back.

How ERC-7702 Works

Let’s say you have a regular wallet like MetaMask, not a fancy smart contract wallet. Normally, your wallet can only send simple transactions like “send ETH” or “approve this token.” But with ERC-7702, you can temporarily upgrade your wallet to do smart things, just for one transaction.

Here’s how it works:

Temporary Smart Logic

When you send a transaction, you can attach custom logic to it, like a little smart contract that only lives for that moment.

Example: “Approve this token, swap it for another, and stake the result all in one go.”

It Only Lasts One Transaction

This smart logic is ephemeral, meaning it disappears right after the transaction is done. Your wallet doesn’t change permanently.

You Stay in Control

You still use your regular Ethereum address. No need to move funds, deploy a new wallet, or mess with complex setups. It’s your same wallet, just temporarily smarter.

It’s Cost-Effective

Since you don’t deploy a full smart contract, you save on gas fees. It’s lightweight and efficient, especially useful for mobile and Layer 2 platforms.

Key Differences Between ERC-4337 and ERC-7702

Here’s a breakdown of how these two standards compare:

Why They’re Better Together

It’s not really a battle between ERC-4337 and ERC-7702; they actually complement each other. ERC-4337 gave us the infrastructure to run smart accounts, with bundlers, paymasters, and EntryPoint. While ERC-7702 just offers a cleaner way to bring smart account features to EOAs by using Ethereum’s native protocol mechanics.

In fact, ERC-7702 can easily work within the ERC-4337 framework. The smart logic in a Type 4 transaction could even include a UserOperation. It’s all layered, not a replacement.

Where LYNC Comes In

ERC-4337 and ERC-7702 are important milestones in Ethereum’s account abstraction journey. But standards alone aren’t enough. What matters is how people actually use them, and that’s where LYNC comes in.

LYNC is an autonomous AI + Web3 Layer designed to bring advanced Web3 functionality, like smart wallets, gasless transactions, and AI-powered agents, to billions of users across the globe. While these standards lay the technical foundation, LYNC turns them into accessible, no-code tools that empower developers, businesses, and end-users alike.

Here’s how we’re aligned with these innovations:

• We support ERC-4337: Our infrastructure includes features like Paymasters for gas abstraction, social logins, and programmable wallets, all powered by the 4337 ecosystem.
• We’re building for agentic commerce: Our AI agents don’t just chat, they act. With LYNC, your wallet can pay, save, and stake on your behalf, based on the rules you define.
• We offer a no-code developer experience: Whether you’re launching tokens, building dApps, or automating transactions, our prompt-based tools make Web3 development faster and easier than ever.

ERC-4337 and ERC-7702 open new doors. At LYNC, we build the bridges so anyone can walk through them.

Conclusion 

As Ethereum continues to evolve with ERC-4337 and ERC-7702, one thing is clear: smart wallets are becoming the new normal. Whether you’re a developer or a user, these upgrades are shaping a smoother, safer Web3 experience. LYNC is building with this future in mind, offering tools that align with the next wave of account abstraction. Smart accounts aren’t coming, they’re already here. And with LYNC, you’re ready for what’s next.