🧠Types of Wallets Used on AVA

1. Understand the Types of Wallets

There are 2 kinds of accounts: Externally Owned Accounts (EOAs) and Contract Accounts (CAs).

EOAs are controlled by private keys and Contract Accounts are controlled by their contract code. CAs, in other words, are Smart Contracts that you regularly interact with.

However, CAs typically lack the functionality of traditional wallets, like EOAs.

Account Abstraction will combine EOA + CA and create an AA Wallet (Smart Contract Wallet or Smart Accounts). These AA Wallets will open up many new development directions as you can now customize the logic on your own wallet with code, which means you can do things similar to Web2's UX.

Read details:

EOA Wallets

AA Wallets

2. Differences Between EOAs and AA Wallet

CRITERIA	EOA WALLET	AA WALLET
Creation	On-chain address linked with a private key (no fees)	Smart contract deployment on-chain (fees required)
Control	Private keys	Smart Contract code
Functionality	Enables account transfer functions and dApp/smart contract interaction	Programmable through smart contract/ account abstraction
Fees	ETH balance is mandatory to transact	Gas Saving mechanisms. Fee payment in stablecoins / other tokens (depending on integrated networks)
Security	User-dependent (private key management)	Sophisticated (2FA)/ Hybrid (multisig)
Recovery	Not possible	Account Recovery/ Social Recovery

3. EOAs/ AA Wallet Pros and Cons

	EOA WALLET	AA WALLET
Pros	Doesn't need to be funded Widely accepted and not banned by projects Interact easily with onchain actions	No Private-key External management Wallet recovery Multi-sig transactions Bundle Transaction Custom limits & 2FA Gasless & Sponsored transactions.
Cons	It's easy to lose the private key, causing loss of control No scalability or customization of code logic Require Private Key signature anytime, anywhere.	Need initial funds for on-chain deployment. Not yet widely approved, easily identified as a bot when participating in the token launch. Can’t originate onchain actions