The anticipation for the approval of the Ethereum ETF has reignited the ETH Beta gold rush. The recovery of mainnet transactions is also expected to have a ripple effect on Ethereum’s various Layer 2 ecosystems. For instance, Farcaster’s announcement of significant funding has brought attention back to DEGEN, and in the ETH Beta wave, people have started chasing OP again.

Uniswap Protocol’s L2 Total Trading Volume Nears $300 Billion

However, in practical operations, since hot topics appear randomly across different chains, when users want to quickly follow trends, they might face varying levels of funds across chains, making the experience and operation less than ideal. Recently, as the leading DEX on the ETH mainnet, Uniswap has kept up with current trends and called on everyone via its official Twitter to pay attention to the new cross-chain intent standard jointly developed with Across – ERC-7683.

Execution Process of Cross-Chain Transactions Under ERC-7683 Standard

Will this inject more vitality and catalysts into ETH DeFi 1.0 projects?

Understanding Cross-Chain Intent

Cross-chain transactions are straightforward, but what is “cross-chain intent”?

Before explaining cross-chain intent, let’s introduce the concept of “intent architecture”:

Intent architecture is a design method where users only need to specify the final state they want to achieve (i.e., the intent) without worrying about the specific execution process. The system automatically finds and executes the best path to achieve that goal based on the user’s intent.

With an understanding of intent architecture, the concept of “cross-chain intent” becomes less abstract:

Cross-chain intent refers to executing user-specified transactions between different chains. For example, if you have 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 this transaction, including cross-chain bridging and swapping.

ERC-7683: The First Cross-Chain Intent Standard

The cross-chain intent system theoretically simplifies the complexity of traditional bridging, becoming the primary solution for cross-chain interactions. However, the current critical challenges for these systems include 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, issues such as higher user costs, longer waiting times, and higher failure rates arise when liquidity is insufficient and filler network scheduling is chaotic.

Standardizing Cross-Chain Transactions

ERC-7683 optimizes the cross-chain transaction process through innovative methods, addressing current cross-chain transaction issues:

1. Standardized Transaction Interface: ERC-7683 defines the standard CrossChainOrder and ResolvedCrossChainOrder structures, parsing orders into an executable standard format. This makes it 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, allowing a universal, shared filler network to complete transactions.
2. Shared Filler Network: After users sign orders through the standardized transaction interface, the orders are broadcast to multiple fillers via the network. Fillers compete through a bidding mechanism to grab orders, offering the best quotes and efficient execution paths.
3. Automated Processing: Users only need to input the specified transaction intent, and the system automatically completes the complex cross-chain operations, reducing costs and time. This results in lower costs and a better user experience.
4. Secure Fund Custody: A standardized verification mechanism settles contracts to escrow user funds, releasing them to fillers only upon successful transaction completion.

Simplifying Cross-Chain Transactions

Imagine manual cross-chain operations via a cross-chain bridge as a primitive logistics chain. A user wanting to send a package from A to B would need to pack and weigh it, customize the route, contact the shipping channel, and track the package throughout the process. This involves varied shipping capacities, different pricing, and the risk of lost packages. The steps are complex, requiring extensive user knowledge and consideration of many factors.

ERC-7683 is like a mature courier company, providing comprehensive and standardized services, including weighing and pricing, route customization, and capacity allocation. For users, this “one-click cross-chain” is both worry-free and cost-effective.

ERC-7683 transforms the cross-chain transaction experience, streamlining processes and enhancing reliability, much like how modern courier services have revolutionized logistics.

Expectations from Project Parties

The blockchain community has long been frustrated by the complexities of cross-chain interactions. From a theoretical perspective, Uniswap’s introduction of the ERC-7683 standard aims to advance cross-chain technology by providing a streamlined cross-chain process. This innovation has garnered respect not only from users but also from project parties such as Optimism and Krystal. These entities eagerly anticipate a fast and efficient cross-chain protocol to liberate liquidity and revitalize the on-chain ecosystem.

Currently, ERC-7683 is under review and discussion and has not yet been officially launched. It is expected to be implemented following further refinement and approval. Uniswap and Across Protocol will hold a seminar on Friday at 1 PM Eastern Time to discuss the practical application of the ERC-7683 standard and provide more detailed information.

Disclaimer:

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