Smart Contract Wallets

Definition ∞ Smart contract wallets are digital wallets that utilize smart contracts on a blockchain to manage assets and execute transactions. Unlike traditional externally owned accounts, these wallets are programmable entities that can enforce complex rules for asset control and usage. This programmability offers enhanced functionality and security features.
Context ∞ Smart contract wallets are a significant development in the cryptocurrency space, often featured in news concerning user experience and security advancements. They enable features such as social recovery, spending limits, and automated transaction execution, moving beyond the basic send/receive capabilities of earlier wallet designs. Discussions frequently revolve around their potential to onboard more users to decentralized applications by simplifying complex interactions and mitigating risks like private key loss.