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On-Chain Automation Without Custody: How Scoped Permissions Actually Work

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Automating on-chain actions like recurring buys or rebalancing typically forces users to either hand over a private key or sign every transaction manually. One common workaround uses delegated session keys, where a separate keypair is authorized to act on behalf of a wallet, but the scope limits are enforced off-chain by a third-party server rather than the blockchain itself. A newer approach, formalized in ERC-7715 for smart accounts under ERC-4337, embeds permission rules directly into the account contract, so any out-of-scope transaction is rejected at the chain level regardless of whether the delegate key is compromised. This on-chain enforcement also makes permission revocation a direct action against account state, not a server-side request that could be delayed or ignored. ERC-7715 offers stronger security guarantees but requires smart account infrastructure and remains immature in tooling and audited enforcer support, while session-key solutions remain more practical for immediate use.

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