With the development of applications such as DeFi, account abstraction, and AI Agents, on-chain authorization is gradually evolving from one-time signature confirmations into execution permissions that can be effective long-term and used repeatedly. Simultaneously, new changes are occurring: AI Agents are beginning to possess the ability to automatically request services and complete payments. For example, the x402 protocol, through the HTTP 402 status code, allows agents to instantly pay for resources and services with stablecoins without human intervention. This transforms on-chain behavior from isolated transactions into a continuously running automated collaborative process.
Against this backdrop, the authorization issue has been further amplified. Current authorization methods in the Web3 ecosystem remain vaguely defined and crudely expressed, often only addressing whether assets can be used, but failing to answer what is specifically allowed and to what extent. ERC-8004 was proposed in this context. It does not define new assets, nor does it change how transactions or payments are executed; instead, it attempts to establish a permission model for on-chain behavior that can be understood and verified by the system, making authorization itself a describable, constrainable, and manageable object.
From a broader systems perspective, ERC-8004 is not in competition with account abstraction and automated payment protocols like x402, but rather represents a division of labor and collaboration at different levels: x402 addresses the issue of value exchange after an action has occurred, while ERC-8004 focuses on who is allowed to act and whether their permissions have been exceeded before the action takes place. In DeFi, AI Agents, and enterprise and RWA scenarios, this permission-first, payment-later structure is expected to drive authorization from the asset level to the behavior level, providing a controllable foundation for more complex and long-term automated collaboration. Although it still faces real challenges in terms of learning costs, wallet support, and user experience, ERC-8004 is not a short-term narrative tool, but a fundamental standard concerning whether Web3 can support the operation of complex systems.
1. The motivation for proposing ERC-8004
As on-chain infrastructure continues to evolve, the capabilities related to asset on-chaining and transaction execution are constantly being abstracted and strengthened. From ERC-20 and NFTs to multi-signature wallets and account abstraction (ERC-4337), the barriers for users to participate in on-chain activities are constantly being lowered, and accounts themselves are becoming increasingly intelligent.
However, a fundamental problem has remained unresolved throughout this process: the authorization mechanism itself has hardly evolved. In early Web3, authorization meant a single private key signature. Users expressed "I agree" through signing, and whether it was a transfer, a contract call, or an approve operation, authorization was considered a one-time confirmation, with the risk entirely borne by the user.
However, the on-chain environment has changed today. In DeFi scenarios, approvals are often valid for a long time; under automated strategies and Session Key systems, authorization is used repeatedly; and in AI Agent or Bot transaction execution models, users no longer directly participate in every operation. Authorization is evolving from one-time confirmation to a persistent execution capability, more like relinquishing the power to do something for a period of time.
The problem is that the current Web3 infrastructure provides almost no clear and unified constraints for such long-term authorization states. Vague permission scopes, difficulty in revoking authorizations, and unpredictable risks have become the source of numerous security incidents. Meanwhile, account abstraction further amplifies this contradiction: when an account can automatically execute transactions and have gas paid by a third party, what it can and cannot do becomes even more unclear.
It is against this backdrop that ERC-8004 was proposed. It attempts to fill a long-standing gap in Web3: to establish a clear, constrained, and system-understandable permission model for authorization itself.
2. Core Contents of ERC-8004
The key to ERC-8004 lies not in the form of assets or the method of transaction execution, but in whether the authorization can be described separately, verified independently, and continuously managed at the system level.
2.1 What does ERC-8004 define?
According to the Ethereum Improvement Proposals (EIP) website, ERC-8004 is a standard protocol for discovering, selecting, and interacting with trusted autonomous agents on Ethereum. It builds an agent infrastructure that enables decentralized interaction without prior trust through on-chain registration, reputation, and verification mechanisms.
The term "autonomous agents" here is not limited to AI agents, but refers to any entity that can be authorized and independently perform actions, such as contracts, automated scripts, multisignature, or service processes. ERC-8004 focuses on whether the executing entity has the ability to clearly define authorization and authority boundaries; AI agents are just one typical application of this.
From a more general perspective, ERC-8004 is not a new asset standard or account type, but rather a framework for expressing and verifying on-chain permissions. It describes the conditions under which an entity is allowed to perform certain actions, and verifies these actions before they are executed. Therefore, ERC-8004 focuses not on "what money is" or "how transactions are executed," but on "which actions are permitted." It does not create new assets or change the attributes of existing assets; it simply adds a layer of clear and verifiable permission rules on top of assets and accounts.
Furthermore, ERC-8004 is not a replacement for account abstraction (ERC-4337). Account abstraction focuses on how transactions are executed, while ERC-8004 addresses the authorization checks performed before a transaction occurs. If account abstraction makes accounts more flexible, ERC-8004 sets clear boundaries for that flexibility.
The core of ERC-8004 lies in transforming authorization from an action implicit in a signature into a permission object that can be clearly described, independently verified, and continuously managed.
2.2 Core Mechanism Framework of ERC-8004
To understand the core mechanism of ERC-8004, we can set aside its complex technical implementation and think of it as an "on-chain permission specification." In traditional authorization logic, users often make a vague decision: "I agree to you operating my assets." The system doesn't further differentiate what can be done, how much can be done, or for how long. However, under the ERC-8004 framework, authorization is no longer a vague consent, but rather broken down into a set of clearly described rules that are enforced by the system. This "permission specification" typically contains the following five key types of information.
Authorizing Entity (Who): Who is authorized to execute this command?
First and foremost, it's crucial to clarify who has been granted execution permissions. In ERC-8004, the authorized entity is no longer limited to a fixed wallet address; it can also be a contract, an automation agent, or even a session key used for short-term operations. This allows authorization to be adapted to more complex scenarios, such as allowing a strategy contract to execute operations within a defined scope, or enabling an agent to complete specific tasks without repeated signatures. Importantly, permissions are always granted to "a specific entity," rather than being vaguely delegated.
What can be performed?: What operations are allowed?
Secondly, it addresses which actions are permitted. Traditional authorization is often all-or-nothing; once authorized, the contract is allowed to freely invoke functions within its scope. In contrast, ERC-8004 allows authorization down to specific action types, such as allowing only swap, transfer, or certain function calls, rather than opening up all possible operations by default. ERC-8004 doesn't answer the question of whether something can be used, but rather, to what extent it can be used.
Under what conditions: Under what conditions can it be executed?
This is the key difference between ERC-8004 and traditional authorization. Authorization instructions typically include explicit restrictions, such as: single or cumulative amount limits; execution frequency or number of times limits; and the ability to operate only on specific protocols, pools, or contract addresses. These conditions are not post-event monitoring rules, but rather prerequisites that must be met before execution. If these conditions are not met, the operation cannot be executed.
When do permissions take effect and when do they expire?
ERC-8004 also introduces clear concepts of time and lifecycle. Authorization can be set to: (a) be valid only for a specific period of time; (b) expire automatically after one use; or (c) be revoked at any time. This makes authorization no longer a long-term burden that cannot be taken back once it is given, but a temporary capability that can be finely managed.
How enforced: How are the rules actually executed?
Finally, and most easily overlooked, is how these rules are enforced. The core idea of ERC-8004 is to perform permission checks before an operation occurs. If an action does not conform to predefined permission rules, the system will directly refuse to execute it, rather than investigating responsibility after a problem occurs. This is precisely the fundamental difference between ERC-8004 and traditional risk control logic.
2.3 New capability types added in ERC-8004: Why couldn't it be done before?
On the surface, ERC-8004 simply makes authorization more granular, but the early Ethereum authorization model could not actually express complex authorization logic. Traditional authorization only checks whether a certain address is allowed to operate; once authorization is granted, what can be done, how much, and when it can be done are not recognized by the system.
The core breakthrough of ERC-8004 lies in upgrading authorization from "identity verification" to "behavior verification." The system now determines whether an operation conforms to the user-defined permission boundaries, rather than simply confirming who initiated it. This allows authorization to inherently include conditions such as amount, frequency, scope, and validity period, eliminating the need for user revocation or manual monitoring.
Once the authorization logic is structured, it becomes composable and reusable for the first time. Multi-step, cross-protocol operations can be explicitly limited during the authorization phase, rather than left to be determined ad-hoc during execution. This is why ERC-8004 truly opens up possibilities for agent-based scenarios. Automated programs no longer require "unlimited authorization," but are confined to a clear and verifiable scope of behavior, refusing execution if these boundaries are exceeded.
The addition of ERC-8004 is not simply "more secure authorization", but rather it makes the authorization logic understandable and executable by the system, which is the essential difference between it and the traditional authorization mechanism.
3. Potential Applications of ERC-8004
ERC-8004 is not a standard designed for a specific product; rather, it is more like a universal language for licensing capabilities. Therefore, its application value lies not in the explosive growth of a single scenario, but in the common need for the same type of capabilities across multiple systems as licensing becomes more complex.
DeFi: From "Asset-Level Authorization" to "Behavioral-Level Authorization"
In the current DeFi ecosystem, the most common authorization method remains "one-time authorization, unlimited limit." For example, to perform a swap, loan, or staking, a user needs to approve the contract, essentially handing over complete control of their assets. This is highly efficient in terms of user experience, but the risks are also obvious: if the contract is upgraded, attacked, or used in unexpected logic, the authorization itself becomes a risk amplifier. ERC-8004 authorization no longer targets assets, but rather specific actions. For example, a user can request: not that I allow this contract to use my USDC indefinitely; but that I allow it to complete a swap operation within 24 hours with no more than 1,000 USDC. Although some projects have attempted to limit the scope and duration of authorization, most currently operate independently. The value of ERC-8004 lies in standardizing behavioral-level authorization, enabling reusable and composable permission management, and fundamentally improving risk control capabilities.
AI Agent: Provides verifiable permission boundaries for automated execution.
As AI agents increasingly participate in on-chain decision-making and execution, the authorization issue has been amplified to a new level. The value of an agent lies in its continuous operation and automated execution, but this also means it must hold certain operational permissions for an extended period. Without clear permission boundaries, an agent is essentially just an automated program with complete user control, and the risks are not reduced by its "intelligence." ERC-8004 provides agents with system-level verifiable authorization boundaries. Which operations an agent can be authorized to perform, the scope of its actions, and whether there are time restrictions—these rules can be verified before execution, rather than relying on post-event monitoring. Only when permissions themselves are structured and verifiable can automated execution possess a reliable foundation.
Synergy with the x402 protocol: Enabling agent actions to be "authorizable and accountable"
In agent-based scenarios, another key issue besides authorization is how value is exchanged once an action is permitted. Some application-layer protocols are attempting to address this problem. For example, the x402 protocol, by re-enabling the HTTP 402 (Payment Required) status code, enables agents to automatically complete stablecoin payments when requesting resources or services. In this architecture, ERC-8004 and x402 reside at different layers but complement each other. ERC-8004 focuses on "who can do what and whether it is permitted," establishing permission and trust boundaries for actions; x402 addresses "how payment and settlement are completed when the action occurs." The former does not depend on the latter, and the latter does not presuppose ERC-8004, but in the agent economy, they respectively assume the roles of the permission layer and the payment layer. This layered collaboration allows agents to complete the entire process from permission verification to value exchange without manual intervention, avoiding the complexity of mixing identity, authorization, and payment logic within the same system. As agents become more active in scenarios such as content acquisition, data retrieval, and computing power services, this combination is expected to become a scalable infrastructure form.
Enterprise and RWA Scenarios: Permissions as the Basic Expression of Compliance
In enterprise applications and RWA scenarios, the value of ERC-8004 lies primarily in compliance and explainability. Real-world asset management often requires a clear answer: who was authorized to perform which actions under what conditions? Rather than whether the assets themselves are on-chain, how permissions are defined and recorded is crucial for integration into the real-world financial system. ERC-8004 doesn't directly solve compliance issues, but it provides underlying support for the structured expression of permissions, making authorization inherently auditable, traceable, and verifiable. This capability doesn't immediately change the user experience, but it significantly reduces the integration costs between Web3 systems and traditional organizations.
These potential applications demonstrate that ERC-8004 is not a "scenario-driven" standard, but rather a fundamental capability that naturally emerges as authorization complexity increases. When on-chain behavior evolves from single operations to continuously running system behavior, a clear and verifiable way of expressing permissions becomes an almost unavoidable choice.
4. The Challenges and Long-Term Value of ERC-8004
Real-world challenges
First, there's the learning curve. Compared to a simple one-click authorization, ERC-8004 introduces a more granular set of permission description logic. Both developers and users need to re-understand the meaning of authorization within the system. This cognitive cost will take time for the market to absorb. Second, there's the issue of wallet and infrastructure support. ERC-8004's capabilities can only truly function when wallets, SDKs, and execution environments understand and cooperate with it. In its early stages, it's more like a usable but not universally applicable capability, making it difficult to achieve immediate scalability. Finally, there's the user experience. Exposing complex authorization directly to users only increases the operational burden. How to transform a set of structured, machine-verifiable permission rules into an interactive method that ordinary users can intuitively understand and accept will directly determine whether ERC-8004 has the potential for large-scale deployment.
ERC-4008 addresses not the present, but the next stage.
Because of these practical barriers, ERC-8004 is not suitable as a short-term narrative tool. It won't immediately lead to an explosion in user numbers, nor will it directly generate new revenue models. ERC-8004 doesn't attempt to make the world faster, but rather to ensure that systems remain controllable, explainable, and verifiable even after becoming more complex. Its value lies not in the number of features, but in whether it reserves a sustainable and evolving permission foundation for future automation, agent collaboration, and institutional participation. In this sense, ERC-8004 is not a standard created for a single cycle, but rather one of the underlying capabilities that determines whether Web3 can support complex collaborative relationships.
refer to
1.ERC-8004: Trustless Agents: https:// eips.ethereum.org/EIPS/eip-8004
2.Ethereum Improvement Proposals (EIPs): https://github.com/ethereum/EIPs
3.ERC-4337: Account Abstraction Using Alt Mempool: https://eips.ethereum.org/EIPS/eip-4337
4.ERC-8004 website: https://www.8004.org
5.How x402 Works: https://docs.cdp.coinbase.com/x402/core-concepts/how-it-works
6.Welcome to x402: https://docs.x402.org/introduction
