Uniswap is joining hands with Across Protocol to fast-track the development of ERC-7683, which promotes cross-chain interoperable crypto.
Bitcoin, Ethereum, and developers of other top blockchains have been gradually improving the base layer.
Think about it: Bitcoin was a transactional layer before the Lightning Network began rerouting transfers off-chain, promising a scalable, low-fee environment.
Ethereum, on the other hand, has been transitioning since its launch – from Homestead to London and then to Merge.
There are also layer-2s, while not forgetting the innovation of ERC-20 and other standards that proved to be game-changing.
Without ERC-20 tokens, Ethereum wouldn’t be as vibrant as it is.
(Source)
With hundreds, if not thousands, of blockchains, the goal is to ensure all of them are connected for the benefit of end users.
Vitalik Buterin and other leading developers have been building.
Uniswap And Across Protocol Join Hands
And now, Uniswap, also wants to chip in and be part of the process.
Yesterday, Uniswap, one of the leading decentralized exchanges, announced that it was partnering with Across Protocol, another DeFi platform, to develop a new token standard, ERC-7683.
If we want cross-chain interoperability, we need to reduce L2 fragmentation
That's why we teamed up with @AcrossProtocol to develop ERC-7683
The first standard for cross-chain intents ✨
— Uniswap Labs 🦄 (@Uniswap) August 28, 2024
The standard, the DEX added, will seek to enhance cross-chain interoperability further. To do this, they will look to create this unified framework for cross-chain intents.
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Address Cross-Chain Interoperability Challenges
It is easy to see why: Blockchains are useful on their own.
However, seamless interoperability between Ethereum and Solana or Dash and Cardano could benefit everyone more.
The existing challenges often mean willing users face difficulties moving assets or interacting with dApps across multiple networks.
Not only do users have to pay more, but they also have to endure longer wait times, with chances of even losing funds through bridges.
Uniswap and Across Protocol are presenting ERC-7683 as their solution for this problem.
The standard will allow different systems to communicate and, most importantly, share infrastructure even more effectively.
Once they implement this standard, ERC-7683 cross-chain intents will improve user experience by, among others, reducing gas fees and enhancing efficiency.
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Vitalik Wants Interoperable Crypto: Cross-Chain Future For Ethereum?
The decision to move in this direction is also not new.
Earlier, Vitalik Buterin said the future will be cross-chain and has expressed support for cross-chain interoperability, especially within the Ethereum ecosystem.
Buterin is convinced that adopting a standard approach, like the one Uniswap seeks with ERC-7683, will drive adoption, especially with the multiple layer-2 networks.
In turn, the standard will reduce the complexities associated with cross-chain transactions.
Cross-L2 roadmap in one tweet:
* 3770 (cross-L2 addrs)
* 7683 (cross-L2 sends via liquidity providers)
* 3668 (L2 light clients)
* Cross-L2-replayable account state updatesThe above is enough already. Later, phase 2:
* L1sload/staticcall
* Keystore rollups
* Proof aggregation— vitalik.eth (@VitalikButerin) August 5, 2024
Beyond ERC-7683, the co-founder has picked out EIP-3370–which proposes a new address standard, and EIP-7683, which seeks to drastically improve and standardize cross-chain communication.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
