What is a Smart Account?
A smart account is a blockchain account implemented as a smart contract rather than a simple key pair (EOA), enabling programmable transaction validation, custom authorization logic, and modular extensions.
WHY IT MATTERS
Smart accounts are the foundation of programmable wallets. Unlike EOAs where a single private key controls everything, a smart account's behavior is defined by code. This code can implement any authorization logic: multisig, spending limits, time locks, session keys, or custom rules.
The modular smart account ecosystem (ERC-6900, ERC-7579) takes this further. Accounts can install and remove modules — adding capabilities like spending limits, social recovery, or automated actions without deploying a new wallet.
For AI agents, smart accounts are the ideal wallet type. You can grant an agent a session key that only works for specific tokens, up to certain amounts, with approved recipients — all enforced by immutable smart contract code. The agent can't exceed these limits even if compromised.
HOW POLICYLAYER USES THIS
Smart accounts are the ideal substrate for PolicyLayer's spending controls. PolicyLayer rules can be embedded as smart account modules — making spending limits, recipient restrictions, and budget enforcement tamper-proof and verifiable on-chain.