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

1. Hooks: Allows contracts and regular addresses to react to receiving tokens.

2. Operators: Enables authorized third parties to move tokens on behalf of a token holder.

3. Send Function: Combines approve and transferFrom into a single function call.

4. Data Field: Allows attaching additional data to token transfers.

5. ERC-20 Compatibility: Can be used with existing ERC-20 infrastructure.

Core Functions

1. send(): Sends tokens to a recipient.

2. burn(): Destroys tokens.

3. authorizeOperator(): Authorizes an address to operate on all tokens of the holder.

4. revokeOperator(): Revokes the authorization of an operator.

5. isOperatorFor(): Checks if an address is an operator for a holder.

6. tokensReceived(): Hook called when tokens are received.

Advantages Over ERC-20

1. Prevention of Token Loss: Helps prevent accidental sending of tokens to contracts.

2. Enhanced Functionality: Allows for more complex token interactions.

3. Improved User Experience: Simplifies certain token operations.

4. Standardized Token Minting: Includes a standard way to mint tokens.

Use Cases

1. Decentralized Finance (DeFi): Complex token interactions in DeFi protocols.

2. Security Tokens: Implementing regulatory compliance checks.

3. Advanced Payment Systems: Enabling more sophisticated payment flows.

4. Token Governance: Implementing voting and delegation mechanisms.

Challenges

1. Adoption: Not as widely adopted as ERC-20.

2. Complexity: More complex to implement than ERC-20.

3. Gas Costs: Some operations may be more expensive due to added functionality.

4. 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.