What Is EIP-3074?

EIP-3074 is a proposed Ethereum network upgrade focused on improving how transactions are authorized and executed. It introduces two new operations called AUTH and AUTHCALL that separate the entity approving a transaction from the one sending it.
This proposal aims to make Ethereum transactions safer, more flexible, and easier to automate. As of August 2024, EIP-3074 is still under development and is expected to go live with the Pectra upgrade by the end of 2024.

How It Works

EIP-3074 defines two key operations that reshape how users and smart contracts interact with the Ethereum network.

AUTH
The AUTH operation allows one address to authorize another to act on its behalf. Instead of always being both the sender and the approver, a user can delegate permission securely, similar to signing a note that lets someone perform an action for you.

AUTHCALL
The AUTHCALL operation enables a smart contract to execute actions as if it were the authorized user. This function allows contracts to perform transactions, manage interactions, and automate on-chain actions on behalf of a wallet, reducing friction in complex workflows.

Together, these two functions create a more flexible and programmable transaction model that opens the door to gasless transactions, automation, and multi-party coordination.

Benefits

Enhanced Security: By separating authorization from transaction execution, EIP-3074 minimizes the risk of unauthorized access.
More Flexibility: It allows multiple parties or smart contracts to share control over a wallet or process, ideal for collaborative DeFi and DAO systems.
Improved User Experience: Simplifies user interactions, reducing repetitive approvals and signature requests across DApps.
Support for Advanced Use Cases: Enables automated payments, delegated transactions, and more complex smart contract interactions, paving the way for innovative DeFi applications.

Conclusion

EIP-3074 represents an important step toward a more secure and user-friendly Ethereum experience. By introducing AUTH and AUTHCALL, it makes transaction management smoother, enables automation, and enhances collaboration between wallets and smart contracts. This proposal has the potential to power the next generation of decentralized applications and financial protocols on Ethereum.