Definition
A smart wallet is a type of blockchain wallet whose core behavior and controls are defined by a smart contract rather than a single externally owned private key. Instead of relying solely on one key pair, it embeds rules for ownership, authorization, and transaction handling directly in on-chain code. This makes the wallet itself programmable, allowing it to enforce custom policies and automate certain actions at the protocol level.
Smart wallets are closely associated with account abstraction, where user accounts behave more like smart contracts than traditional key-based accounts. They can support features such as multi-owner control, recovery mechanisms, and fine-grained transaction permissions. As a concept, a smart wallet focuses on enhancing security and usability by shifting critical logic from off-chain key management into verifiable on-chain execution.
Context and Usage
In contrast to a basic wallet, which simply signs and broadcasts transactions, a smart wallet can interpret and enforce complex conditions before allowing value to move. It may integrate session key concepts, where limited-purpose keys are granted temporary rights for specific actions. This structure enables more granular control over how and when transactions are authorized without exposing full control of the wallet.
Smart wallets can also be designed to support gasless transaction flows, where transaction fees are abstracted away from the end user through smart contract logic and external fee payers. Because they are implemented as smart contracts, they can be upgraded or extended to support new security models, permission schemes, or application-specific behaviors. Overall, the smart wallet concept represents an evolution of the traditional wallet into a programmable, policy-driven account model on-chain.