Ethereum is set to implement the Ethereum Improvement Proposal (EIP) 3074 in its forthcoming Pectra hard fork, an update that focuses on the recovery of lost private keys through a new social recovery feature.
Meanwhile, this development is part of Ethereum’s continuous effort to innovate and enhance the security and functionality of its network.
The Pectra hard fork will introduce tools that significantly enhance the user experience by enabling the recovery of digital assets in cases where private keys are lost. Ethereum’s lead developer, Tim Beiko, confirmed the inclusion of EIP 3074, marking a critical update aimed at reducing the risks associated with lost access credentials.
EIP-3074 is coming in the next Ethereum hard fork.
This is a big deal. Wallet UX will 10x.
Congratulations to Ethereum and the EIP-3074 sponsors.
Reth has already implemented and tested it. We are fans.
Let's go. https://t.co/lUiK2kb3UT
— Georgios Konstantopoulos (@gakonst) April 11, 2024
Key Features of EIP 3074
EIP 3074 introduces two new opcodes, “AUTH” and “AUTHCALL,” which are central to the new functionalities. The AUTH opcode allows the network to validate a user’s signature and confirm the correctness of the intended actions. Subsequently, AUTHCALL enables the execution of transactions, designating the original user as the caller rather than the invoker contract.
Moreover, this update will empower Ethereum wallets with advanced smart contract capabilities. Users will be able to delegate the management of their assets to an invoker contract through a secure digital signature. This contract will then manage transactions on behalf of the user, enhancing the ability to execute actions even if the original private keys are compromised.
Safety Measures and User Responsibilities
While EIP 3074 provides powerful tools for asset recovery and transaction management, it also necessitates increased user responsibility. According to Ethereum Foundation researcher Domothy, users must be cautious when selecting an invoker address, as delegating assets to a malicious contract could lead to significant losses.
The update will include several formally verified and fully audited invoker contracts to ensure safety and reliability. These measures are designed to mitigate risks and provide users with secure options for utilizing the new features.
Market Anticipation and Future Applications
The market response to the announcement of EIP 3074 has been notably positive, with expectations high for the Pectra hard fork scheduled for late 2024 or early 2025. Analysts suggest that the ability to recover assets without the original private keys could lead to broader retail adoption of Ethereum.
Furthermore, Cygaar highlighted that EIP 3074 will streamline processes such as token swaps on platforms like Uniswap. Currently, these actions require multiple steps, but with the new update, users will be able to consolidate actions into a single transaction, enhancing efficiency and user experience.
