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Executive Summary: What Are Smart Contract Wallets?

In this article, I explain what smart contract wallets are and how they differ from regular wallets by enabling users to control funds via a smart contract.


Smart contract wallets allow users to control funds via a smart contract instead of a private key, enabling enhanced security, usability, and interoperability features compared to regular wallets.

What are smart contract wallets:

  • Users control a smart contract holding their funds, not a private key
  • Enables features like recovery without seed phrase, transfer limits, multi-sig

How they differ from regular wallets:

  • More secure: recovery methods, transfer limits, multi-sig
  • Better usability: interact directly with dApps
  • More interoperable: gasless transactions, meta transactions

Benefits of smart contract wallets:

  • Lower gas fees
  • Enhanced user experience
  • Increased security and account recovery

Risks of smart contract wallets:

  • Bugs, errors or vulnerabilities in contract code
  • Malicious modules or loss of control
  • Improper dApp integrations, phishing risks


  • Standard that enables easier use of smart contract wallets
  • Allows features like multi-factor authentication and auto-payments

Argent, Safe, Squads, Instadapp, Biconomy

Full article:

What Are Smart Contract Wallets? | CoinMarketCap
Smart contract wallets, based on contract accounts instead of externally-owned accounts (EOA), offers enhanced security, usability and interoperability for Ethereum users.