Ethereum Ecosystem Reignites: Detailed Explanation of ERC-7683 Led by Uniswap
The world has long suffered from cross-chain issues.
Author: TechFlow
The anticipation of the Ethereum ETF approval has reignited the ETH Beta gold rush.
The resurgence of mainnet transactions is also bound to impact various L2 ecosystems on Ethereum. For instance, Farcaster's announcement of massive funding has brought DEGEN back into the spotlight, and in the ETH Beta wave, everyone is chasing OP...
The total transaction volume on Uniswap protocol's L2 is about to reach $300 billion
However, in practical terms, since hot topics emerge randomly across different chains, when users want to quickly chase these trends, they may face varying amounts of funds on different chains, requiring cross-chain transfers, which are neither user-friendly nor efficient.
Recently, as the leading DEX on the ETH mainnet, Uniswap has kept up with current events by calling on everyone via its official Twitter to pay attention to the new cross-chain intent standard, ERC-7683, jointly developed with Across.
The execution process of cross-chain transactions under the ERC-7683 standard
Will this inject more vitality and catalysts into ETH DeFi 1.0 projects?
Cross-chain is easy to understand, but what is "cross-chain intent"?
Before explaining cross-chain intent, let's first introduce what "intent architecture" is:
Intent architecture is a design method where users only need to specify the final state they want to achieve (i.e., the intent) without worrying about the specific execution process. The system automatically finds and executes the best path to achieve the goal based on the user's intent.
Understanding intent architecture makes the concept of "cross-chain intent" less abstract:
Cross-chain intent refers to executing user-specified transactions between different chains. For example, if you have some USDC on Ethereum and want to exchange it for MATIC on Polygon, in a cross-chain intent system, you only need to tell the system "exchange USDC on Ethereum for MATIC on Polygon," and the system will automatically find the optimal path to complete the transaction, including cross-chain bridging and exchange.
ERC-7683, the first cross-chain intent standard
In theory, the cross-chain intent system simplifies the complexity of traditional cross-chain bridging, becoming the main solution for user cross-chain interactions. However, the current key challenge for these systems is the need for sufficient liquidity and an active filler network to execute cross-chain transactions.
As the number of chains and cross-chain demands increase, insufficient liquidity and chaotic filler network scheduling can lead to higher cross-chain costs, longer wait times, and higher failure rates for users.
ERC-7683 standardizes and optimizes the cross-chain transaction process, addressing current cross-chain transaction issues through innovative methods:
-
Standardized transaction interface: ERC-7683 defines standard CrossChainOrder and ResolvedCrossChainOrder structures, parsing orders into executable standard formats, making it easier for fillers to understand and process, enabling interoperability between different blockchain systems. ERC-7683 proposes that all cross-chain intents follow the same order structure, allowing a common, shared filler network to complete transactions.
-
Shared filler network: After users sign orders through the standardized transaction interface, the orders are propagated to multiple fillers through the network. Fillers compete for orders through a bidding mechanism, providing the best quotes and efficient execution paths.
-
Automated processing: Users only need to input the specified transaction intent, and the system automatically completes the complex cross-chain operations, reducing costs and time. Users enjoy lower costs and a better user experience.
-
Secure fund custody: Through a standardized verification mechanism, settlement contracts escrow user funds, releasing them to fillers only after confirming the transaction's success.
Imagine that manually cross-chaining through a cross-chain bridge is like a primitive logistics chain. Users wanting to send a package from A to B need to pack and weigh it themselves, customize the route, contact the transportation channel, and track the package throughout the process. There are also varying carrier capacities, pricing, and even the risk of lost packages. The steps are complex, requiring users to understand a lot of knowledge and consider many factors.
ERC-7683 is like a mature courier company, with a complete set of unified standards, including weighing and pricing, route customization, and capacity allocation. For users, such "one-click cross-chain" is both worry-free and cost-effective.
Expectations from project teams
The world has long suffered from cross-chain issues.
From a theoretical process perspective, Uniswap has indeed provided a convenient cross-chain process by introducing the ERC-7683 standard to promote cross-chain technology advancement.
Not only users but also project teams like Optimism and Krystal have expressed their respect for the introduction of ERC-7683. Everyone is looking forward to a good and fast cross-chain protocol to liberate liquidity and bring more vitality to the on-chain ecosystem.
Currently, ERC-7683 is under review and discussion and has not yet been officially launched. It is expected to be officially implemented after further refinement and approval.
Uniswap and AcrossProtocol will hold a discussion on ERC-7683 this Friday at 1 PM EST, where you can learn about the practical application and more details of the ERC-7683 standard after its launch.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
