Cross-chain transactions can be a real headache. Managing multiple chains, concern about sending crypto to the wrong address, and just the overall complexity can be intimidating. What if there was a better, easier, more efficient, and effective way to do it all? That's where ERC-7930 and ERC-7828 come in. Wonderland, a decentralized finance (DeFi) ecosystem development organization, introduced two new ERC token standards. These standards all work to simplify cross-chain transactions across the entirety of the Ethereum ecosystem. GreedyChain GreedyChain.com is your home for finding out how these standards work and what they mean for you.

What are ERC-7930 and ERC-7828?

ERC-7930 and ERC-7828 have the goal of making cross-chain transactions simpler and less error-prone. Currently, wallets, DApps, block explorers, and smart contracts all read and present information differently on each blockchain. This absence of consistency adds obfuscation and raises the chances for error. These standards seek to address that gap. This is because they ensure a uniform experience as users move between different chains that make up the Ethereum ecosystem.

ERC-7930 defines an efficient and binary format for interoperable addresses. In fact, its goal is to provide a user-friendly, efficient solution for going cross-chain. Consider this to be a technical specifications document for what an address needs to look like, for it to function smoothly across all chains. ERC-7828 is meant to be the human-readable text layer that we’re actually engaging with humans through. It’s aimed directly at applications that demand a smart user interface, such as wallets, DApps and block explorers. Putting it all together, it gives you the easy-to-use, beginner friendly version of ERC-7930. This design makes it easier for everyday users to understand and interact with cross-chain addresses.

The goal is simple: simplify cross-chain transactions, reduce friction for users, and provide a consistent experience when moving between different chains within the Ethereum ecosystem. Through the adoption of such standards, the hope is that complex cross-chain interactions will become invisible, seamless, and intuitive.

How Will These Standards Simplify Cross-Chain Transactions?

The secret to how these standards make cross-chain transactions easier is in the ‘address@chain’ format. This standardization means less complex address management, making it easier to spot and manage addresses even when switching between chains. No more memorizing different address formats from each chain. Instead, you’ll magically submit one single, consistent format!

Here's a practical example of how the 'address@chain' format will work: Imagine you want to send some ETH to your friend who lives on the Optimism network. Instead of using a long, complicated Optimism address, you can simply use the format: 0xYourFriendAddress@optimism. From this you can easily tell that the target address is on the Optimism network.

Cross-chain transactions create a new realm of possibilities for DeFi users. Here are a few examples:

  • Simplified Address Management: The 'address@chain' format allows users to easily identify and manage addresses across different chains, reducing the complexity of address management.
  • Reduced Errors: By including the chain information in the address, the 'address@chain' format helps reduce errors caused by mistyping or misinterpreting addresses across different chains.
  • Improved Readability: The 'address@chain' format makes it easier for users to read and understand addresses, as it clearly indicates the chain associated with the address.
  • Enhanced Compatibility: The 'address@chain' format enables seamless interactions between different chains, making it easier for users to conduct cross-chain transactions.

Use Cases for Cross-Chain Transactions

Although ERC-7930 and ERC-7828 provide vast enhancements, there are still risks to be conscious of.

  • Seamless Asset Transfer: A user wants to transfer Bitcoin (BTC) to Ethereum (ETH) to participate in a decentralized finance (DeFi) protocol. With cross-chain transactions, the user can transfer BTC to ETH without needing to convert it to a intermediate asset, reducing transaction costs and increasing efficiency.
  • Interoperable Smart Contracts: A developer wants to create a smart contract that interacts with multiple blockchains, such as Ethereum, Polygon, and Binance Smart Chain. Cross-chain transaction standards enable the developer to deploy a single contract that can interact with multiple blockchains, increasing composability and reducing complexity.
  • Cross-Chain Lending: A user wants to lend assets on a lending protocol on Ethereum, but the protocol also supports Polygon. With cross-chain transactions, the user can lend assets on Ethereum and borrow assets on Polygon, increasing liquidity and reducing fragmentation.
  • Omnichain DeFi: A user wants to participate in a DeFi protocol that operates on multiple blockchains, such as Ethereum, Avalanche, and Fantom. Cross-chain transaction standards enable the user to interact with the protocol across multiple blockchains, increasing accessibility and reducing complexity.
  • Simplified Asset Management: A user wants to manage assets across multiple blockchains, such as Bitcoin, Ethereum, and Litecoin. Cross-chain transaction standards enable the user to manage assets across multiple blockchains in a single interface, reducing complexity and increasing efficiency.

Potential Risks and Mitigation

In order to avoid causing more harm than good, a number of steps must be taken to reduce these risks. Wallets must define strict and safe validations before assuming that any chain identifier will be understood. If real Unicode glyph collisions are possible, very clear warnings should be shown to the user. Developers should be mindful of future interoperability issues and design systems that can handle potential collisions between different versions of the standard.

  • Collision attacks: Collisions on 4-byte checksums are feasible to mine, but it's unlikely the impersonator's address or name is also a lookalike of the intended recipient's.
  • Misinterpreted chain identifiers: Could lead to funds loss if not properly mitigated.
  • Future Interoperable Address defining an associated Interoperable Name causing collisions with previous versions: The main risk would be for a future Interoperable Address to define an associated Interoperable Name which can cause collisions with previous versions.
  • Unicode glyph collisions: A risk if wallets do not display names with sane warnings around unicode glyph collisions.
  • 4-byte checksum provides probabilistic collision resistance:

The Ethereum community is able to address these risks in earnest. In doing so, they’ll make sure that ERC-7930 and ERC-7828 deliver on their promise of making cross-chain transactions quick, secure, and easy to navigate. We at GreedyChain.com are devoted to following the evolution and implementation of these standards. We’ll arm you with all the knowledge you need to come out on top in this new Web3 world.

By addressing these risks proactively, the Ethereum community can ensure that ERC-7930 and ERC-7828 deliver on their promise of simpler, safer, and more user-friendly cross-chain transactions. GreedyChain.com will continue to monitor the development and adoption of these standards, providing you with the insights you need to stay ahead in the Web3 game.