Bitcoin

Nervos introduces a new token standard to compete with Ethereum’s ERC-20 on DeFi

The Nervos blockchain announced the launch of its own token standard, SUDT (simple custom token), to compete with Ethereum’s ERC-20 standard. This was reported to Cointelegraph in Spanish through a statement.

Accordingly, the SUDT standard will enable developers to create and issue their own tokens in the Nervos network.

“”Like ERC-20, SUDT is a technical standard for smart contracts that controls the distribution of tokens in the blockchain. Users can create an unlimited number of tokens with any SUDT-enabled Nervos wallet. In contrast to ERC-20, however, there is no need to re-implement a smart contract in the chain for each new token. SUDT defines the implementation of the token standard, not just the interface. With the new libraries and programming tools currently available, developers can also easily integrate SUDT tokens into decentralized applications (dApps).”They said in the statement.

Nervos introduces a new token standard to compete with Ethereum’s ERC-20 on DeFi
Nervos introduces a new token standard to compete with Ethereum’s ERC-20 on DeFi

“The SUDT standard is an important addition to the Nervos infrastructure and leads Nervos from a single-asset platform to a multi-asset platform. By allowing anyone to implement tokenized assets backed by the proof-of-work-based Layer 1 Nervos blockchain, SUDT establishes the design of Nervos as a multi-asset storage value blockchain and expands its usefulness for DeFi applications significantly, ”they added. then.

Kevin Wang, Co-Founder of Nervos, said:

“The introduction of the SUDT standard is an important milestone in the development of DeFi at Nervos. This achievement is the culmination of months of painstaking effort to reinvent what is possible and take DeFi’s capabilities to the next level.”

Nervos’ implementation and capabilities are interesting in the DeFi ecosystem, and they claimed that they offer some advantages over other token standards.

“Nervos SUDT is the first token standard to incorporate the First Class Assets concept, a Nervos design principle where user authority takes precedence over everything else to give users full ownership and control of their assets. . Tokens cannot be changed or confiscated without the consent of the user, including the creator of the token. The authority of the user also surpasses that of the smart contract governing the asset, which reduces the risk of the smart contract and is designed to prevent costly smart contract hacks, ”the statement said.

It should be noted that SUDT will be launched on the eve of the first anniversary of the Nervos mainnet. Since launching in November 2019, Nervos has improved its infrastructure to support a wide range of DeFi applications, from payment and credit solutions to decentralized exchanges (DEX).

In addition to supporting multiple assets through SUDT, Nervos has integrated many specific DeFi solutions, including data protection protocols, decentralized oracles, multi-chain wallets and a stable coin bridge between Nervos and Ethereum.

Wang also pointed out:

“DeFi’s growth has revealed opportunities for improvement in existing blockchain networks. However, our layered architecture was specifically designed to address these challenges. With SUDT, developers can now spend all kinds of token assets on Nervos, scale transactions at our level 2 and stay protected by our level 1. “

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