ERC-777 Key Points
- ERC-777 is a token standard on the Ethereum blockchain.
- It is an advanced and more flexible version of the ERC-20 standard.
- ERC-777 allows for more complex interaction between smart contracts and tokens, enhancing user experience.
- It integrates “hooks” for both senders and receivers to react to token transactions.
- ERC-777 reduces the risk of accidental loss of tokens.
ERC-777 Definition
ERC-777 is a new standard for tokens on the Ethereum blockchain, which provides an advanced and more flexible framework compared to its predecessor, the ERC-20 standard. It enhances user experience by allowing more complex interactions between smart contracts and tokens, integrating “hooks” that allow both senders and receivers to interact with tokens.
What is ERC-777?
ERC-777 is a token standard built on the Ethereum blockchain. It is designed to improve upon the functionalities offered by the widely-used ERC-20 standard, introducing new features that make it more secure and user-friendly.
The ERC-777 standard allows for more complex interactions between smart contracts and tokens, thanks to the integration of “hooks”, which are essentially callbacks that can be triggered during a transaction.
Who Uses ERC-777?
ERC-777 is used by developers building decentralized applications (dApps) on the Ethereum network, particularly those that require more complex token interactions than what is offered by the ERC-20 standard.
It is also used by those looking for a more secure token standard that mitigates the risk of accidental loss of tokens.
When Was ERC-777 Introduced?
The proposal for ERC-777 was first made in 2017, with the aim of addressing some of the limitations of the ERC-20 standard.
Since then, it has been adopted and used by a number of dApps and projects on the Ethereum network.
Where is ERC-777 Used?
ERC-777 is used on the Ethereum blockchain, which is a decentralized, open-source blockchain featuring smart contract functionality.
It is commonly used in decentralized finance (DeFi) applications, Initial Coin Offerings (ICOs), and other projects that require advanced token functionality.
Why Use ERC-777?
One of the primary reasons to use ERC-777 over ERC-20 is its advanced functionality. The standard allows for more complex and interactive smart contract functionalities, which can enhance the user experience.
It also significantly reduces the risk of token loss, a common issue with the ERC-20 standard. This is because ERC-777 tokens are sent directly to their recipient contracts, instead of being sent to a user’s address.
How Does ERC-777 Work?
ERC-777 works by introducing the concept of “hooks”, which are functions that can be called before or after a transaction. These hooks can be used by both the sender and receiver of a transaction to react to token transfers in different ways.
For example, a hook could be used to trigger a notification when a transaction occurs, or to automatically execute a function in response to a token transfer. This makes ERC-777 more flexible and capable of complex interactions than its predecessor, the ERC-20 standard.
