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ERC-777
What is ERC-777?
ERC-777 is an Ethereum token standard that aims to improve upon the widely used ERC-20 standard. It provides advanced features while maintaining backward compatibility with ERC-20. ERC-777 introduces concepts like hooks and operators, allowing for more complex token interactions and improved usability.
Key Features
Hooks: Allows contracts and regular addresses to react to receiving tokens.
Operators: Enables authorized third parties to move tokens on behalf of a token holder.
Send Function: Combines approve and transferFrom into a single function call.
Data Field: Allows attaching additional data to token transfers.
ERC-20 Compatibility: Can be used with existing ERC-20 infrastructure.
Core Functions
send(): Sends tokens to a recipient.
burn(): Destroys tokens.
authorizeOperator(): Authorizes an address to operate on all tokens of the holder.
revokeOperator(): Revokes the authorization of an operator.
isOperatorFor(): Checks if an address is an operator for a holder.
tokensReceived(): Hook called when tokens are received.
Advantages Over ERC-20
Prevention of Token Loss: Helps prevent accidental sending of tokens to contracts.
Enhanced Functionality: Allows for more complex token interactions.
Improved User Experience: Simplifies certain token operations.
Standardized Token Minting: Includes a standard way to mint tokens.
Use Cases
Decentralized Finance (DeFi): Complex token interactions in DeFi protocols.
Security Tokens: Implementing regulatory compliance checks.
Advanced Payment Systems: Enabling more sophisticated payment flows.
Token Governance: Implementing voting and delegation mechanisms.
Challenges
Adoption: Not as widely adopted as ERC-20.
Complexity: More complex to implement than ERC-20.
Gas Costs: Some operations may be more expensive due to added functionality.
Security Considerations: New features introduce new security aspects to consider.
Similar Terms
ERC-20: The original Ethereum token standard that ERC-777 aims to improve upon.
ERC-223: Another proposed improvement to ERC-20 with some similar goals.
Smart Contract: The underlying technology that enables token standards like ERC-777.
Ethereum: The blockchain platform that EIPs are designed for.