New Cross-Chain Interoperability Standard ERC-7683: Simplifying Multi-Chain Ecosystem Interactions

In the multi-chain landscape of blockchain, achieving secure and convenient cross-chain interoperability has always been a significant challenge. With the increasing demand for cross-chain transactions from users, this issue has become even more prominent. The main challenges include security, high Gas fees, and operational complexity.

Security is the primary consideration for cross-chain transactions. Cross-chain bridge protocols often become targets of hacker attacks, and if the number of validators is insufficient or the trust model is overly centralized, they may be compromised. For example, on August 6, 2024, a certain cross-chain bridge was suspected to have been attacked, resulting in a loss of approximately $12 million. In addition, contract vulnerabilities are also common security risks.

Cross-chain transactions usually incur higher Gas fees, as users need to pay operation fees on both chains. The complexity of operations is also a major barrier, as the independence of different blockchain networks makes the transfer process of assets and data cumbersome. Frequent transactions may also encounter price slippage.

In response to these issues, on May 20, 2024, a certain DEX development team and an interoperability protocol jointly proposed the ERC-7683 standard, aimed at simplifying cross-chain transaction processes through a shared execution network.

The ERC-7683 standard is created based on the CrossChainOrder structure, providing the ISettlementContract smart contract interface to implement a standard API for cross-chain transaction execution systems. Its core technical proposal is to ensure that all "cross-chain intents" follow the same order structure, greatly enhancing the flexibility and user-friendliness of cross-chain operations.

In terms of application, on August 21, 2024, a certain Layer 2 solution announced the adoption of the ERC-7683 standard to facilitate the efficient transfer of ETH and USDC within its ecosystem and promote broader interoperability within the Ethereum ecosystem. The project has integrated a cross-chain solution from a certain interoperability protocol.

It is worth noting that the ERC-7683 standard mainly regulates the implementation entry of cross-chain transactions, ensuring the consistency of user experience, but there are still cross-chain liquidity issues to be resolved. The effectiveness of the standard's implementation depends on whether there are enough active "Fillers" to support users' "cross-chain intentions". Therefore, the ERC-7683 standard needs to create a wide-ranging effect to attract more use cases and user participation in order to truly enhance the overall efficiency of cross-chain transactions.

Ethereum co-founder Vitalik Buterin publicly supports the development of the ERC-7683 standard. He noted that this standard can support various on-chain activities such as batch transactions and Merkle proofs, and emphasized its potential to simplify user operations.

The multi-chain paradigm is an inevitable trend in the Web3 era, and optimizing cross-chain transactions, simplifying operational processes, and releasing liquidity will be key to driving the development of the Web3 world. The ERC-7683 standard directly addresses the pain points of cross-chain transactions and is expected to significantly enhance interoperability among blockchains, having a profound impact on the entire blockchain ecosystem. At this stage, users can look forward to the improved experience brought by the ERC-7683 standard, which may also inject more liquidity support into DeFi projects and accelerate industry development.