What is an EIP-7702 smart account?

A smart contract wallet AKA smart account is a customizable Ethereum account. Smart accounts can be programmed with features like

* Batched transactions: Multiple actions, such as approving and swapping on a DEX, can be combined into one transaction.

* Gas fee abstraction: Users can transact without having to pay gas fees in the native token.

What is an EIP-7702 Authorization?

Regular EOA wallets upgrade to EIP-7702 smart accounts by authorizing a contract. The upgraded wallet has a "delegation indicator" that points to the authorized contract. When a transaction is sent to the EOA, it executes the code of the authorized contract.

To downgrade back to a regular EOA, the wallet authorizes the burn address.

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What is a Set Code transaction?

A transaction where Authorizations are executed onchain, thereby upgrading EOAs to smart accounts. One set code txn can contain multiple Authorizations.