Original author: Yue Xiaoyu
Reprint: Luke, Mars Finance
To conclude, in one sentence: ERC-7802 is a cross-chain standard that extends new features for existing ERC-20 tokens, enabling standard cross-chain functionality by calling the ERC-7802 interface.
01 Background
ERC-7802 is a cross-chain token standard jointly proposed by the Optimism team and the Uniswap team, aimed at maintaining a unified standard for tokens during cross-chain.
We can see that the cooperation between Uniswap and Optimism is deepening: the Unichain that Uniswap announced earlier to launch is part of the OP Superchain ecosystem, and today they jointly proposed this cross-chain standard.
The proposal of ERC-7802 aims to standardize 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, it aims to separate the token contract from specific cross-chain bridging technologies or protocols as much as possible.
This is a modular design, effectively transferring complexity to cross-chain bridges, separating cross-chain logic from token contracts, making the structure of token contracts simpler and more modular.
The implementation of the token only needs to focus on its basic functions, without having to consider the specific implementations of cross-chain transfers.
Bridging protocols handle all complexities related to cross-chain transfers, including transaction validation, asset locking and release, cross-chain communication protocols, etc.
ERC-7802 defines a standardized interface for how tokens interact with cross-chain bridges, 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 modifying the token contract itself.
03 Specific Implementation
ERC-7802 defines a standardized interface, which includes two key functions:
(1) crosschainMint: mint tokens on the target chain for the recipient as a result of burning tokens on the source chain.
(2) crosschainBurn: burn tokens on the source chain and initiate a cross-chain transfer, usually the starting point for cross-chain transfers.
It should be noted 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.
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 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 with ERC-20 is very important for the new standard, making it easier for existing tokens to cross-chain into the new ecosystem.
In this way, existing tokens can exist as regular ERC-20 tokens and then achieve cross-chain functionality through the ERC-7802 interface.
04 Protocol Value
Addressing the user experience issues of multi-chain is a major trend. ERC-7802 actually establishes cross-chain standards from the most fundamental protocol layer, complementing the narrative of 'chain abstraction.'
ERC-7802 directly supports the goal of chain abstraction by providing a standardized cross-chain token transfer protocol, allowing assets to flow seamlessly across different chains.
The realization of chain abstraction requires the cooperation of multiple 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 concrete technical solutions for chain abstraction, addressing the technical issues of token cross-chain transfer, while chain abstraction utilizes these solutions to offer higher levels of user experience and application development frameworks.
More importantly, the standard proposed by OP also lays the foundation for the interoperability of the OP Superchain ecosystem.
Currently, this protocol standard is still in the discussion stage, and we can continue to follow up.
