What is a Smart Contract Wallet? 5 Epic Benefits
Smart Contract Wallets will replace traditional wallets like MetaMask.
As the world of DeFi continues to evolve, there is a need for more secure wallet solutions. This need has led to a new generation of crypto wallets called Smart Contract Wallets. Smart Contract Wallets are revolutionizing the crypto landscape by offering a more secure and user-friendly experience. Unlike centralized exchanges, smart contract wallets maintain self-custody and decentralization.
This article will explore the advanced features of these wallets and highlight how they differ from traditional wallets like MetaMask.
What is a Smart Contract Wallet? Simple Definition
A smart contract wallet is a type of crypto wallet with better security and user experience than wallets like MetaMask. It is a two-part wallet: the application and an account smart contract. With smart contract wallets, users can batch multiple transactions into one. They can also transform their smartphone into an advanced hardware wallet, and pay gas fees in tokens other than ETH.
Is MetaMask a smart contract wallet? No, MetaMask is not. It is an externally owned account (EOA).
Is TrustWallet a smart contract wallet? No, Trustwallet is not. Like MetaMask, Trustwallet is also an externally owned account (EOA).
So what are examples of smart contract wallets? Braavos is one of them. Let’s see what are the benefits of this type of wallet.
Key Features of Smart Contract Wallets
Multicalls
Users can bundle multiple calls into a single transaction, simplifying the process and making it more efficient and secure.
For example, users no longer have to give unlimited approval to dApps to access their account to perform transactions (like AMMs that need an ‘approve’ transaction before a Swap). The ‘approve’ call is bundled into the same transaction as the actual operation the user wants to do (e.g. Swap). The transactions are faster and more straightforward. As a consequence, the overall user experience is better.
Hardware Signer
Wallets that support account abstraction, as outlined in ERC-4337, pave the way for custom signature verification schemes. These schemes enable the integration of mobile-based HSM security (secp256r1 / NIST-P256) directly into the blockchain for verification.
Braavos introduces true 2FA (two-factor authentication) in the crypto world through this innovative approach. By combining “something you have” (a physical token or device) and “something you are” (a biometric identifier), Braavos greatly enhances security.
Multi-Signer
Users can add a signer from a different device with the Multi-Signer feature. It offers 3FA (three-factor authentication) – something you know, something you have, and something you are.
In the Braavos Wallet, users sign transactions with the Braavos Chrome extension in conjunction with their Android or iOS mobile device. This ensures that users execute transactions only after they have been signed by both the extension (using the key derived from the seed phrase) and the mobile device (employing the Hardware Signer).
By adding this extra layer of security, users further safeguard their transactions and assets.
Daily Withdraw Limit
Smart Contract Wallets offer users the ability to set a daily withdrawal limit. It restricts the amount that can be spent in a single day. If a user attempts to spend beyond their daily allowance, the transaction may either be blocked or require 2FA or 3FA verification, depending on the user’s preferred security level.
This feature not only adds an extra layer of account management and protection but also promotes more conscious spending habits. Moreover, potential attackers can’t drain an entire account instantly if they manage to compromise just one of the user’s authentication mechanisms.
Paymaster
You might have experienced the inconvenience of wanting to perform a transaction but not having enough ETH to cover the gas fees. In such cases, users need to go through the process of depositing ETH into their account from an external source.
The Paymaster feature enables users to pay gas fees using any supported token. This added flexibility and convenience allow users to avoid the hassle of depositing or on-ramping additional ETH solely for gas fees. It streamlines the transaction process and makes it more user-friendly.
Braavos: Leading the Change in Wallet Innovation
Braavos is an example of a Smart Contract Wallet that is pushing the boundaries of what is possible in the crypto space. As one of the leading solutions, Braavos operates on top of Starknet. Starknet is an Ethereum layer 2 scaling solution that offers low fees and account abstraction built-in to the protocol.
Unlike MetaMask, or other traditional wallets that are not currently supported on Starknet, Braavos takes advantage of the benefits provided by this technology. It further enhances the user experience.
So, what is a smart contract wallet in simple terms?
A smart contract wallet, in contrast to traditional crypto wallets such as MetaMask, offers enhanced security and user experience. It stands out by consisting of two components: the application and an account smart contract. These wallets allow users to consolidate multiple transactions. It also allows them to turn their smartphone into an advanced hardware wallet. Finally, users can cover gas fees with tokens other than ETH.
Braavos is at the forefront of this transformation. By working on top of Starknet and continuously innovating in the space, Braavos is shaping the future of decentralized finance. As the world of crypto continues to evolve, wallets like Braavos are poised to play a significant role in driving mass adoption.
We foresee that smart contract wallets will quickly gain traction and attract users who were previously deterred by the complexity and security risks associated with traditional wallets and self-custody.
To get started, download the Braavos Wallet on your preferred browser or mobile device today.
