ERC-7683: Uniswap and Across Protocol New Standard for Seamless Cross-Chain Trades

Uniswap Labs and Across Protocol propose ERC-7683, a new Ethereum standard aimed at simplifying cross-chain swaps. This standard promises to enhance interoperability, lower costs, and improve user experience.

Uniswap Labs and Across Protocol have put forward a groundbreaking proposal for a new Ethereum standard, ERC-7683, which aims to revolutionize cross-chain swaps by improving interoperability and user experience.

Understanding Intents and Cross-Chain Intents

To grasp the significance of ERC-7683, it’s essential to understand the concept of intents. Intents are declarations of a network participant intention to perform a specific action, such as executing transactions, interacting with smart contracts, or staking. Traditional transactions specify actions directly, but intents-based models describe desired outcomes, allowing the network to manage and execute the necessary transactions to achieve these outcomes.

With more applications pivoting to intents-based execution for enhanced user experience, Uniswap and Across Protocol are seeking to standardize the use of intents for cross-chain operations.

Cross-chain intents involve declarations of intentions to execute actions across different blockchains. These intents are broadcast to third parties, such as relayers or market makers, who compete to fulfill the user’s order.

The Proposed Standard: ERC-7683

On May 20, Across Protocol elaborated on the need for ERC-7683. Typically, protocols that adopt intents-based execution must attract and maintain their own relayer ecosystems, leading to relayer fragmentation. ERC-7683 addresses this issue by requiring all cross-chain intents to follow a standardized order structure, enabling a shared set of relayers to fulfill transactions.

Benefits of ERC-7683

This new standard offers numerous benefits:

1. Lower Costs: Standardizing cross-chain intents reduces operational costs for relayers by allowing them to serve multiple protocols without needing bespoke integrations for each one.
2. Improved User Experience: A shared relayer network increases competition among relayers, resulting in faster transaction times and lower costs for users.
3. Enhanced Network Reliability: With a wider network of relayers, applications can ensure more consistent and reliable cross-chain transactions.

Uniswap plans to implement ERC-7683 with UniswapX, an open-source protocol launched in July 2023, which facilitates trading across automated market makers (AMMs) and other liquidity sources. UniswapX aims to enable gas-free cross-chain swaps, significantly improving user experience.

Challenges and Considerations

While ERC-7683 is promising, it is still in the draft stage and far from being an established standard on Ethereum. Furthermore, intents-based execution models can introduce centralization risks, as relayers are often large market players, which could consolidate power within the network.

Conclusion

ERC-7683 represents a significant step toward simplifying cross-chain swaps and enhancing blockchain interoperability. By standardizing the process and leveraging a shared relayer network, Uniswap and Across Protocol aim to make cross-chain transactions more efficient, cost-effective, and user-friendly.

Disclaimer: This article does not constitute investment advice. Investing in cryptocurrencies is speculative and involves substantial risk. Your capital is at risk.

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