Digital Asset Market News: Vitalik Buterin Breaks Silence on Risky Ethereum Upgrade EIP-7702

Ethereum co-founder Vitalik Buterin has addressed rising concerns from the community over the upcoming EIP-7702 feature, which is part of the broader Pectra network upgrade. The feature allows standard wallet accounts—Externally Owned Accounts (EOAs)—to temporarily act as smart contract accounts during a single transaction.

The criticism emerged after users on social platforms pointed out that the upgrade could create an opening for attackers to exploit delegation features. One user wrote, “It’s alarming that basic protections exist for unsafe websites, but delegation to malicious contracts can still pass through unnoticed.”

These concerns focus on the possibility of signing transactions that hand over control to fraudulent contracts. If a user unknowingly approves such a transaction, it could result in a complete loss of funds with just one action.

Buterin Urges Use of Verified Contracts

In a response posted on Warpcast, Buterin urged users to take a cautious approach. He advised that any use of the new feature should rely only on contracts that have gone through thorough checks.

“Delegation should be limited to a single, well-vetted contract that has been examined by trusted teams. That contract can then safely handle more complex logic,” Buterin stated.

This comes as the Ethereum community continues to stress the need for additional safeguards in light of how easily delegation could be misused. Without proper auditing, there’s a risk that users might unknowingly expose their wallets to phishing attempts or backdoor access.

How EIP-7702 Changes Transactions

EIP-7702 introduces a new transaction mechanism that lets EOAs temporarily function like smart contracts. During the transaction, users can run advanced logic, including sponsored gas fees and batch operations. After completion, the account returns to its original state.

The proposal makes it easier for users to access smart contract-level features without permanently converting their wallets. This provides more flexibility while maintaining the simplicity of regular EOAs.

However, the flexibility also comes with challenges. Attackers could create contracts that appear harmless but contain code that activates under specific conditions. These types of threats can be difficult to detect during normal transaction flows.

Pectra Launch Rescheduled

Originally expected in early May, the Pectra upgrade has been moved up to April 21, following confirmation from Ethereum core developers. Once implemented, the update will allow developers and users to test the delegated transaction feature in a live environment.

EIP-7702 was authored by Vitalik Buterin along with Ansgar Dietrich, Matt Garnett, and Sam Wilson. The goal is to allow EOAs to perform more advanced actions without compromising wallet design.

Buterin’s public response comes as a reminder to the community to rely on known and reviewed tools, especially when trying out new features in upcoming protocol upgrades.