In the world of web3, we've long celebrated the promise of decentralization, self-sovereignty, and user autonomy. As the ecosystem matures, we're witnessing the nuanced evolution of how user security and innovation balance against each other – particularly in how wallet providers approach new capabilities like account delegation.

A "walled garden" in blockchain refers to a closed ecosystem where the operating environment has control over applications, content, and media, and restricts access to non-approved applications or content. While aspects of this pattern are emerging in the web3 wallet landscape around account delegation, the reality is more complex than a simple open-versus-closed dichotomy.

With the recent inclusion of EIP-7702, users gain access to powerful new on-chain capabilities through account delegation. This technical advancement serves as the foundation for bringing sophisticated smart contract functionality to existing accounts without requiring users to change their security model or migrate to a new wallet system. The delegation mechanism itself isn't the innovation - it's what this mechanism enables: secure, automated operations that were previously impossible for basic accounts.

The wallet providers' caution around delegation isn't without merit. Delegation is indeed powerful, and with that power comes potential risks:

• EIP-7702 delegation allows a smart contract to act on behalf of an EOA. If this delegated authority isn't properly constrained, a malicious or compromised delegate contract could potentially drain an account.
• Immature or flawed delegate implementations could introduce security vulnerabilities that put user assets at risk.
• The relatively new nature of the standard means security best practices are still evolving, and wallet providers understandably want to protect their users.

Most wallet providers are currently taking a measured approach to this new capability, focusing primarily on enabling batch and sponsored transactions while being cautious about broader implementations. Some have expressed a preference for initially supporting their own delegate implementations while they evaluate the security implications of third-party solutions.

This is where Otim enters the picture. As a dedicated smart account infrastructure company, Otim is building a specialized delegation implementation that prioritizes both security and innovative functionality. Rather than opposing wallet providers' security focus, Otim is working to establish standards and best practices that can help the ecosystem move forward safely. We believe that with the right approach, delegation can open new possibilities for users while maintaining the security they expect.

The current state of delegation access isn't merely a technical consideration – it reflects a broader question about how web3 evolves while balancing security and innovation. By working collaboratively, we can find a path that preserves both.

Current Approaches to Delegation

The landscape of wallet development reveals diverse approaches to EIP-7702 delegation. Major wallet providers are taking careful steps in how they enable delegation capabilities:

• Some blue-chip wallets are developing their own delegation implementations with a primary focus on batch and sponsored transactions. They're positioning these as security-verified approaches that protect users while enabling basic functionality improvements.
• The consensus is that many wallets have implemented technical barriers that limit third-party delegate implementations from submitting EIP-7702 delegation transaction requests, creating a controlled approach to this powerful new capability.
• This cautious approach creates some fragmentation in the ecosystem, as delegation capabilities may vary across wallet providers rather than following a unified standard.

This pattern resembles aspects of the walled gardens seen in web2, where platform owners determine what functionality can run within their environments. The difference, however, is that these restrictions appear primarily motivated by security considerations rather than purely business interests.

Balancing Protection and Innovation

There's an inherent tension between protecting users and enabling innovation. When wallet providers:

• Apply rigorous security standards before allowing delegate implementations
• Prioritize their own delegation implementations
• Take time to develop clear standards for third-party solutions

...they are fulfilling their duty to protect users. However, finding the right balance is key to ensuring that innovation doesn't stagnate.

The question becomes: "If users haven't been given the choice, have they chosen at all?" True security should empower informed decision-making, not eliminate it. While wallet providers are rightfully acting with user protection in mind, a collaborative approach to standards and verification would create an ecosystem that balances security with innovation. This would maintain safety while allowing the ecosystem to benefit from specialized delegation solutions built by teams dedicated to this specific infrastructure.

Understanding EIP-7702 and Why It Matters

To appreciate the significance of delegation implementations, we need to understand what EIP-7702 enables and why it represents an important development for Ethereum accounts.

EIP-7702 introduces a new transaction type for setting persistent code at an EOA's address. This allows an EOA to delegate authority to a smart contract, enabling complex functionality while maintaining the security and simplicity of an EOA.

Before EIP-7702, users faced a difficult choice:

• Keep using simple EOAs with limited functionality
• Migrate to complex smart contract wallets with different security models
• Use workaround solutions that often introduced their own risks and limitations

EIP-7702 bridges this gap, allowing EOAs to access smart functionality without changing their fundamental security model. It enables capabilities like recurring payments, gas-sponsored transactions, batched operations, and more – all while letting users keep their familiar wallets.

This standard evolved from earlier proposals like EIP-3074, refined through community feedback to address security concerns while preserving its transformative potential. It represents years of work to enhance Ethereum's account layer in a backward-compatible way.

For many in the ecosystem, EIP-7702 is primarily viewed as a way to introduce batch and sponsored transactions for EOAs - important advancements in their own right. However, Otim sees even broader potential: bringing tradfi mechanics that have been missing from crypto, such as direct debit and automated payments that enable everyday commerce. This difference in vision may explain why some wallet providers haven't yet prioritized full access to this standard beyond its initial applications.

Otim's Approach to Secure Delegation

Otim operates on two fundamental principles:

Building Trust: Security is non-negotiable. Otim's approach to delegation puts security first, with multiple audits, continuous reevaluation, and a commitment to open-source code when launching on mainnet. But security doesn't have to mean restriction – it means implementing proper guardrails while preserving user choice.

Building History: Creating a reliable track record of successful, secure operations is essential for both user confidence and wallet provider acceptance. Otim meticulously tracks execution performance and maintains robust systems to ensure reliability.

Otim leverages delegation as the technical foundation to deliver what truly matters: secure, user-friendly smart operations. Our focus isn't on delegation as an end goal, but on creating reliable infrastructure that enables powerful financial capabilities previously missing from crypto. The delegation implementation is simply our means of bringing these valuable functions to users.

Given the current environment, Otim has developed pragmatic solutions that work within existing infrastructure:

• CLI-Based Delegation Access: Otim leverages existing developer tools like Foundry's cast command to enable users to delegate to Otim from any wallet. While not as seamless as direct wallet integration, this approach gives users immediate access to Otim’s smart actions without requiring wallets to build custom delegation support. We hope to work closely with injected wallet providers to create a native Otim delegation experience.
• Working with Embedded Wallet Providers: Otim partners with embedded wallet solutions that are open to supporting delegation, creating pathways for users within those ecosystems. Simple passkey-based account generation with delegation all with a single click.
• 712 Signature Support: For ongoing functionality after delegation, Otim leverages EIP-712 signatures, which provide human-readable transaction data for users and are universally accepted across wallet providers. This ensures a seamless experience regardless of which wallet a user prefers.

Otim's engineering approach focuses on practical security with clear validation rules. The architecture minimizes trust requirements - users don't need to rely on off-chain actors behaving honestly.

By implementing these measures, Otim demonstrates that security doesn't require complex standardization. Rigorous verification and transparency create a practical model for secure delegation that could guide how wallet providers evaluate implementations in the future. This approach prioritizes verifiable security outcomes over compliance with numerous technical specifications.

Beyond the Garden: A Vision for Open Delegation

At its core, the debate over delegation access reflects fundamental values about what web3 should be. The open delegation model espoused by Otim aligns with web3's founding principles. Self-sovereignty ensures users control their digital assets and how they're used, including the ability to delegate authority according to their needs. Permissionless innovation allows developers to build new solutions without seeking approval from gatekeepers, driving blockchain innovation. Composability enables different elements of the ecosystem to interact freely, creating emergent functionality greater than the sum of its parts.

Open delegation embodies these principles, treating users as capable of making informed decisions about their own security rather than forcing them into predetermined patterns. It's about giving users tools rather than restrictions.

Benefits for the Entire Ecosystem

A well-designed, open delegation ecosystem creates advantages beyond individual user freedom. Developer innovation flourishes when developers can build delegation implementations with different features and trade-offs, leading to more experimentation and better solutions. User-centric features emerge as competition among delegate implementations drives more responsive development of features that users actually want. Expertise consolidation becomes possible as infrastructure providers can focus deeply on delegation security and capabilities, allowing for more robust solutions than what each wallet provider might build independently. This specialization creates better outcomes for users without fragmenting the ecosystem with app-specific delegates. This specialization creates better outcomes for users without fragmenting the ecosystem with app-specific delegates. Interoperability improves as consistent, transparent approaches enhance compatibility across the ecosystem, reducing fragmentation.

Even wallet providers themselves could benefit from this openness. By separating wallet functionality from delegation implementation, they could focus on their core competencies while leveraging specialized solutions from security-focused infrastructure providers like Otim.

Creating a Path Forward Together

The journey toward open, secure delegation isn't about opposition between wallet providers and delegation infrastructure – it's about establishing transparent verification frameworks that allow both to flourish while prioritizing user security and choice.

Otim envisions a future where multiple delegation implementations can earn their place through provable security and reliability. This 'proving ground' approach would:

• Establish clear security criteria that any delegation implementation must meet
• Provide transparent metrics on performance and security
• Allow different implementations to compete on features and capabilities
• Give users informed choice based on verified information

In this vision, wallet providers play a crucial role as security gatekeepers, but through verification and certification rather than blanket restrictions. They can serve as a trusted security council that helps users make informed choices about which delegation implementations meet their security requirements.

The path forward involves demonstrating that specialized delegation infrastructure can be both secure and valuable. As wallets gradually open access to delegation capabilities, companies dedicated to smart account infrastructure like Otim will be ready with thoroughly tested, audited, and transparent implementations.

By working together – wallets focusing on user protection and companies like Otim focusing on secure, innovative delegation – we can unlock the full potential of EIP-7702 and move toward a web3 ecosystem that offers both security and choice.

The walls around wallets don't need to be torn down – they can evolve into carefully designed gateways that verify and validate, without unnecessarily restricting innovation. That's the future Otim is working to build.