The Ethereum ecosystem is reignited, detailing the ERC-7683 led by Uniswap
The world has long suffered from cross-chain issues.Author: Deep Tide TechFlow
The anticipation of the Ethereum ETF approval has reignited the gold rush for ETH Beta.
The revival of mainnet transactions is bound to radiate to the various L2 ecosystems of Ethereum. For example, Farcaster announced significant financing, bringing DEGEN back into the spotlight, and amidst the ETH Beta wave, everyone is starting to chase after OP…
The total transaction volume on Uniswap protocol's L2 is about to reach $300 billion
However, returning to practical operations, as instant hotspots randomly appear across chains, when users want to quickly chase these hotspots, they may face different liquidity levels across chains, requiring cross-chain capital transfers, which does not provide a good experience or operation.
Recently, as the leading DEX on the ETH mainnet, Uniswap has kept up with current events and called on everyone to pay attention to the new cross-chain intent standard jointly developed with Across --- ERC-7683.
The execution process of cross-chain transactions under the ERC-7683 standard
Will this inject more vitality and catalysts into various 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 methodology where users only need to specify the final state they want to achieve (i.e., the intent) without needing to worry about the specific execution process. The system automatically finds and executes the best path to achieve that 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 across different chains. For example, if you have some USDC on Ethereum and you 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 exchanging.
ERC-7683, the first cross-chain intent standard
The cross-chain intent system theoretically simplifies the complexity of traditional bridging across chains, becoming the main solution for user cross-chain interactions. However, the current key challenges for these systems are 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, when liquidity is insufficient and the filler network is poorly coordinated, users may face higher cross-chain costs, longer wait times, and higher failure rates.
ERC-7683 standardizes and optimizes the cross-chain intent process, addressing current issues in cross-chain transactions through innovative methods:
Standardized trading interface: ERC-7683 defines standard structures for CrossChainOrder and ResolvedCrossChainOrder, parsing orders into executable standard formats that are 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 so that a universal, shared filler network can complete transactions.
Shared filler network: After users sign orders through the standardized trading interface, the orders are propagated through the network to multiple fillers, who compete for the orders through a bidding mechanism, providing optimal quotes and efficient execution paths.
Automated processing: Users only need to input their specified trading 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: User funds are held in escrow through a standardized verification mechanism, released to fillers only after confirming the transaction's success.
Imagine that a user's manual cross-chain behavior through a cross-chain bridge is like the original logistics chain. If a user wants to send a package from A to B, they need to pack and weigh it themselves, customize the route, contact the transport channel, and track the package throughout the process. Moreover, there are varying capacities and prices from carriers, and even the risk of lost packages. This involves a complex series of steps and requires users to understand numerous factors.
ERC-7683 is like a mature courier company, with a complete set of unified standards including weighing, pricing, route customization, and capacity allocation. For users, such a "one-click cross-chain" solution is undoubtedly convenient and cost-effective.
Expectations from project parties
The world has long suffered from cross-chain issues.
From a theoretical process perspective, Uniswap indeed provides a convenient cross-chain process with the introduction of the ERC-7683 standard to promote the advancement of cross-chain technology.
Not only users but also project parties like Optimism and Krystal have expressed respect for the launch of ERC-7683, all looking forward to a fast and efficient cross-chain protocol to liberate liquidity and bring more vitality to the blockchain.
Currently, ERC-7683 is under review and discussion and has not yet officially launched. It is expected to be implemented after further refinement and approval.
Uniswap and AcrossProtocol will hold a discussion about ERC-7683 this Friday at 1 PM Eastern Time, where attendees can learn about the practical applications and more details of the ERC-7683 standard after its launch.
