What is an ERC-777?
ERC-777 is a type of Ethereum smart contract standard for tokens. It is similar to the ERC-20 standard, but with several added features and improvements. The primary purpose of ERC-777 is to provide a more flexible, user-friendly, and secure standard for creating and managing tokens on the Ethereum network.
Some of the key features of ERC-777 include:
1. Better Error Handling - ERC-777 includes improved error handling, making it easier to identify and address issues that arise when using tokens.
2. Greater Flexibility - ERC-777 allows for the creation of tokens with different permissions and functions, such as the ability to transfer or burn tokens, and the ability to execute specific functions when tokens are sent or received.
3. Improved Security - ERC-777 includes several security features, such as the ability to detect malicious contract addresses and prevent token transfers to these addresses.
4. Customizable Token Operations - ERC-777 allows for the creation of tokens with custom operations and functions, giving developers more control and flexibility in how their tokens behave.
Overall, ERC-777 aims to provide a more advanced, secure, and flexible standard for creating and managing tokens on the Ethereum network. This standard is designed to support a wider range of use cases, including decentralized applications (dApps), digital wallets, and more.
Simplified Example
Think of ERC-777 as a set of rules for making a special type of toy that can be used in different ways and has special powers. These toys, called "tokens," can be used in different games and can do different things, like moving around, changing colors, or even disappearing.
Just like how different toys have different rules, like how a puzzle has different pieces that fit together in a certain way, these tokens also have rules that dictate how they can be used and what they can do. The rules for making these special tokens are called the ERC-777 rules.
By following these rules, people can make sure that the tokens they create are safe, easy to use, and can do a lot of different things in different games. Just like how you can use different toys for different purposes, these tokens can also be used for different things like buying things online or trading with other people.
Who Invented ERC-777?
The term "ERC-777," formally titled "EIP-777: An Account Abstraction Layer for Ethereum," was introduced through a proposal by Christian Reitwiessner and Fabian Vogelsteller on May 13, 2017. Accepted and implemented as an official Ethereum Improvement Proposal (EIP), this initiative resulted in the establishment and widespread adoption of the ERC-777 token standard. As such, Christian Reitwiessner and Fabian Vogelsteller are credited with coining the term "ERC-777" by formalizing its specifications and functionalities within the framework of EIP-777.
Examples
1INCH - A decentralized exchange aggregator that sources liquidity from multiple decentralized exchanges to provide users with the best price for their trades.
FTM - A token that is used as the native currency of the Fantom network, a fast, scalable, and secure decentralized platform for real-time applications.
WETH - Wrapped Ether, a token that represents Ether (ETH) on the Ethereum network, but with added compatibility with the Ethereum token standards, such as ERC-20 and ERC-777.