// GLOSSARY -- AGENTIC FINANCE
What is a Programmable Wallet?
A wallet with built-in logic enforcing transaction rules — spending limits, recipient restrictions, multi-party approvals — at the wallet level. Smart contract wallets (ERC-4337) are the primary implementation.
WHY IT MATTERS
EOAs: whoever has the key can do anything. Programmable wallets add logic between key and transaction — "only transfers under $1,000."
For agents, a natural fit. The wallet enforces boundaries even if agent software is compromised.
Account abstraction (ERC-4337/7702) standardized custom validation logic, making programmable wallets practical.
HOW POLICYLAYER USES THIS
PolicyLayer adds a layer to programmable wallets — on-chain enforcement from the wallet, off-chain evaluation from PolicyLayer for richer rules and easier management.
FREQUENTLY ASKED QUESTIONS
What makes it 'programmable'?
Custom validation logic executing before transactions. Smart contracts achieve this on-chain; PolicyLayer adds off-chain programmability.
More expensive?
Higher deployment cost but similar per-tx cost. Security benefits outweigh marginal increase.
Existing wallets?
EIP-7702 lets EOAs delegate to smart contract logic temporarily — making any wallet programmable without migration.