What is ERC-777?
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Let's find out ERC-777 meaning, definition in crypto, what is ERC-777, and all other detailed facts.
ERC-777 is a token standard that allows producing tokens on the Ethereum blockchain, similar to the ERC-20 token standard. However, it makes complex token trading possible and helps clear up any confusion over various processes like minting and burning. This standard transforms current fungible token models and offers a safer and more effective approach to carry out the token exchange.
Even though ERC-777 ontracts interact in the same manner ERC-20 contracts do, the distinctive feature of the former is a hook mechanism. It simplifies the exchange of tokens between accounts and contracts. The hook mechanism is enabled once the tokens get sent to a computer-based analytical contract.
Besides that, the ERC-777 token standard has many more advantages. For starters, it allows anyone to add new capabilities to tokens. For example, you can add an emergency recovery mechanism that would assist you if you were to misplace your private keys.
Another advantage of ERC-777 is the "tokensReceived" code, which is included in a contract. It is activated when tokens are received. The code helps to avoid the duplicate call that occurs with the ERC-20 token standard when only the ERC-20 token owner is changed during the asset transfer from one smart contract to another.
Additionally, the ERC-777 uses the brand-new ERC-820 standard. It makes it possible to register meta-data for contracts, facilitating a fundamental type of introspection. In addition to expanding capabilities, this makes it possible for backward compatibility.
Moving further, the token standard has a new transfer function. Any identification info can be added to the transfer in a field called "bytes." It is then used to instantly alert the recipient contract when a transfer gets completed.
Now, even though the early security issues of ERC-777 have been fixed, it can still have some limitations like any other token.
For instance, since it is possible to send ERC-777 tokens to any Ethereum address, you can essentially transfer them to contracts that do not support them, completely locking them in. And, even if the tokens can be mannualy moved, it is very hard to identify who sent the tokens back and from where.
If you're curious where to get tokens based on the ERC-777 standard, you can acquire them on most popular exchanges like Binance or Bybit. For instance, Bancor (BNT), MakerDAO (MKR), or Loopring (LRC) are all based on this standard.