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In the letter
- Nervos is a blockchain network that stands as a competitor of Ethereum.
- It just launched an alternative to Ethereum’s ERC-20 token standard.
- This will allow anyone to create new tokens on the Nervos network, just like on Ethereum, but with a twist.
A year has passed since then Network nerves, a scalable proof-of-work blockchain has released its mainnet Lina. To celebrate the anniversary of its Ethereum-like network, the company announced today that it is launching a standard native token: the simple user-defined token (SUDT). Just like the ERC-20 standard for Ethereum, it allows anyone to create and issue new tokens on the Nervos blockchain.
“SUDT is designed to compete with Ethereum’s ERC-20, especially in DeFi use cases,” Cipher Wang, Head of Product at Nervos, told Decrypt.
Nervos says his implementation of SUDT offers some key advantages over the ERC-20 standard.
For example, to distribute new ERC-20 tokens, developers must redeploy a smart contract on the Ethereum chain, which adds gas tariffs and technical effort. This is because although ERC-20 offers clear guidance on its token interface, it does not provide guidance on how to implement a token. As a result, there is no standardization between the different ERC-20 tokens.
The Nervos SUDT, on the other hand, defines both the token interface and its implementation. There are two benefits to this approach, says Nervos: Developers don’t need to redeploy new smart contracts when they issue new tokens, and standardization ensures each new token will be created in a defined way and is less likely to contain bugs.
“There is this ‘white list’ concept in DeFi,” Wang explained Decrypt. “For example, for loan protocols like Maker and Compound, they only select certain assets as collateral. Because? Because many unknown ERC-20 tokens can be malicious or contain bugs, causing all the DeFi hacks. ”
Nervos wants to avoid implicit whitelisting in its blockchain ecosystem and create a stricter token standard.
“Furthermore, the launch of tokens on SUDT is much cheaper than ERC-20,” Cipher said. During the height of DeFi mania, implementing a smart contract costs thousands of dollars, but with Nervos there is no need to implement a new smart contract, and issuing tokens is no different than a simple transaction, which costs pennies.
To demonstrate SUDT’s capabilities, Nervos collaborated with a community project Portal Wallet, a crypto wallet built on Nervos native token, “Common Knowledge Base” (CKB). the wallet also works in the dApp browser of any Ethereum wallet. The Nervos demo, shown in a video, shows Nervos co-founder Daniel Lv buying a cup of coffee using a SUDT token, called COFFEE, at a mobile wallet-enabled Chinese Starbucks. (Starbucks is mobile wallet enabled across the country.)
“We first distributed COFFEE tokens to users during Nervos 1 year celebratory events. COFFEE token can be redeemed for Starbucks coupons in our Online shop, a Portal Wallet feature, which can be used directly on Starbucks. ”Frank Lou, founder of Lay2, the company behind Portal Wallet.
Think of COFFEE as a fungible token that has a 1: 1 exchange ratio with Starbucks coffee.
The whole point of Portal Wallet’s COFFEE token is that users won’t feel like they are using a Web3.0 wallet because the user experience feels like redeeming a coupon from your Wechat Pay or AliPay. And this is the aspiration of Lou and his team: to connect Internet users seamlessly to the Web3.0 digital economy.
“SUDT is just the beginning,” said Jan Xie, co-founder of Nervos Decrypt. “We will continue to expand our standard around SUDT and its governance, deposit and withdrawal. We will also create more tools to help developers build on us. ”
In addition to launching a token standard, Nervos has been working on other DeFi infrastructure projects such as a privacy protocol with Grin, decentralized oracles, multi-chain wallets, and a stablecoin bridge between Nervos and Ethereum, which allows users to use the Ethereum key. to sign transaction on Nervos.
