Article source: Yue Xiaoyu
Author: Yue Xiaoyu
To conclude, in a nutshell: ERC-7802 is a cross-chain standard that extends new features to existing ERC-20 tokens, and by calling the ERC-7802 interface, standard cross-chain functionality can be achieved.
01 Background
ERC-7802 is a cross-chain token standard jointly proposed by the Optimism team and the Uniswap team, aiming to maintain a unified standard for tokens during cross-chain operations.
We can see the deepening cooperation between Uniswap and Optimism: the Unichain that Uniswap previously announced to launch is part of the OP Superchain ecosystem, and together they proposed this cross-chain standard.
The proposal of ERC-7802 is aimed at standardizing cross-chain operations, which is very important for DEXs (decentralized exchanges) like Uniswap and L2 solutions like Optimism.
Token standards on Ethereum have been evolving, from ERC-20 to ERC-721, ERC-1155, etc. ERC-7802 is part of this evolution, focusing on solving the specific issue of cross-chain.
02 Design Principles
Overall, the design principle of ERC-7802 is 'bridge agnosticism': in cross-chain scenarios, to the extent possible, separate the token contract from specific cross-chain bridging technologies or protocols.
This is a modular design that effectively shifts complexity to the cross-chain bridge, separating the cross-chain logic from the token contract, making the structure of the token contract simpler and more modular.
The implementation of tokens only needs to focus on their basic functionality, without considering the specific implementation of cross-chain transfer.
Bridging protocols bear all the complexities related to cross-chain transfers, including transaction validation, asset locking and releasing, cross-chain communication protocols, etc.
ERC-7802 defines a standardized interface for how tokens interact with cross-chain bridging, but does not concern itself with how these bridges are specifically implemented.
Any bridging protocol that complies with ERC-7802 can use this interface for cross-chain operations without needing to modify the token contract itself.
03 Specific Implementation
ERC-7802 defines a standardized interface that includes two key functions:
crosschainMint: Mint tokens for the recipient on the target chain as a result of burning tokens on the source chain.
crosschainBurn: Burn tokens on the source chain and initiate a cross-chain transfer, usually the starting point for cross-chain transfers.
It is important to note that cross-chain minting and burning are different from local minting and burning. In cross-chain operations, the total circulating supply across all chains remains unchanged, as tokens are transferred between chains rather than actually being created or destroyed.
The ERC-7802 contract supports ERC-165, which is an interface detection standard that allows smart contracts to declare which interfaces they support. This helps ensure the compatibility of contracts for cross-chain operations.
More importantly, ERC-7802 is compatible with ERC-20.
ERC-20 is a widely used fungible token standard on Ethereum, so compatibility of the new standard with ERC-20 is very important, allowing existing tokens to more easily cross-chain into the new ecosystem.
Thus, existing tokens can exist as ordinary ERC-20 tokens and then achieve cross-chain functionality through the ERC-7802 interface.
04 Protocol Value
Addressing the experience issues of multi-chain is a major trend; ERC-7802 actually establishes a cross-chain standard from the lowest level of the protocol layer, which complements the narrative of 'chain abstraction'.
ERC-7802 directly supports the goals that chain abstraction aims to achieve by providing a standardized cross-chain token transfer protocol, enabling assets to flow seamlessly across different chains.
The implementation of chain abstraction requires the synergy of various technical standards and protocols, and ERC-7802 can be seen as one of the key building blocks.
It can be said that ERC-7802 provides a concrete solution for chain abstraction at a technical level, solving the technical issues of cross-chain transfer of tokens, while chain abstraction leverages these solutions to provide a higher level of user experience and application development framework.
More importantly, the standard proposed by OP also lays the foundation for interoperability of the OP Superchain ecosystem.
This protocol standard is currently still under discussion, and we can continue to pay attention.
