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Uniswap Labs and Across Protocol have launched ERC-7683, a new Ethereum token standard that promises to simplify cross-chain transactions and interoperability.
The new standard introduces a new way to handle transactions between different blockchains. It creates a common network that connects these blockchains, solving the problem of having different systems that don’t work well together. ERC-7683 also lowers costs and makes the process simpler for everyone involved.
Enhancing Cross-Chain Interoperability
Uniswap Labs has adopted ERC-7683 for cross-chain swaps on UniswapX, enhancing trading across automated market makers (AMM) and other liquidity sources.
“ERC-7683 proposes that all cross-chain intents follow the same order structure, so that a universal, shared filler network can fulfill transactions,” Across Protocol noted.
Different blockchains manage transactions differently, making it complex and expensive to transfer assets across them. ERC-7683 aims to standardize this process, reducing the need for each blockchain to have its own system. This standardization makes cross-chain interactions more efficient and cost-effective, benefiting users by lowering fees and speeding up transactions.
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Uniswap Labs and Across Protocol have shared their proposal on the Ethereum Magicians forum, seeking feedback and further discussions. Following its announcement, Uniswap’s native token, UNI, saw a 2.43% increase in value, trading at $7.79.
ERC-7683 and Its Technical Specifications
ERC-7683 introduces two key features: the CrossChainOrder structure and the ISettlementContract interface. These features create a flexible and unified system for handling trades between different blockchains. The new standard allows developers to customize how transactions are processed while maintaining a consistent framework.
Launching ERC-7683, Uniswap Labs and Across Protocol address major challenges in cross-chain transactions, such as ensuring there is enough liquidity and making the process user-friendly. By standardizing how transactions are handled, ERC-7683 promotes fair competition among transaction processors (fillers). This leads to better fulfillment of user requests and more successful trades. Overall, ERC-7683 represents a significant step forward in making blockchain technology more efficient and accessible.