Nervos, one of China’s most prominent blockchain and crypto projects, advertised the launch of its token standard, the sUDT today.
Since its inauguration last year, Nervos addressed essential improvements to its infrastructure to support a wide range of DeFi applications, from payments and lending solutions to decentralized exchanges (DEXs). It’s now considering its next step.
The new token model intends to contend with Ethereum’s ERC-20 standard, with one of the crucial distinctions being that Nervos’ standard passes smart contract hazard by getting the assets tamper-proof.
Is Nervos’ sUDT better than Ethereum’s ERC20?
The sUDT, abbreviated from Simple User-Defined Token, will allow developers to design and issue their tokens on the Nervos network to benefit from a quicker, more expandable network with lower fees.
Like Ethereum’s ERC-20, the sUDT is a technological measure behind smart contracts that guide the allocation of tokens on the blockchain. It allows creating an unlimited number of tokens with any sUDT-enabled Nervos wallet.
Unlike ERC-20, there is no need to re-position a smart contract on the chain for each new token. sUDT determines the implementation of the token standard, not just the interface. New programming libraries and tools currently accessible will also allow developers to easily integrate sUDT tokens into decentralized applications (dApps).
The sUDT standard is a critical extension to Nervos’ infrastructure, taking Nervos from a single asset platform to a multi-asset platform. By allowing anyone to use tokenized assets secured by Nervos’ Proof of Work-based layer one blockchain, sUDT establishes Nervos’ design as a multi-asset store of value blockchain and dramatically extends its value for DeFi applications.
Built with DeFi in mind
Kevin Wang, the co-founder at Nervos, stated in an announcement that the launch of the sUDT standard was a “significant milestone in the progression of DeFi on Nervos.”
He continued:
“This achievement represents the culmination of months of diligent effort to reimagine what is possible and push the capabilities of DeFi to the next level.”
The Nervos’ team maintains its unique implementation and capacities are required for building DeFi apps and introduce new improvements over other token standards. This combines features like all Nervos-issued tokens not altered or seized without the user’s consent, not even by the token creator.
Such “User authority,” as per Nervos, ever trumps the actual smart contract that governs the asset, mitigating smart contract risk and preventing costly smart contract hacks.
Meanwhile, Wang noted that the exponential growth of the DeFi sector brought with it the need to improve legacy blockchain networks, which the Nervos developers took care of. He explained that,
“With sUDT, developers can now issue all kinds of tokenized assets on Nervos, scale transactions on our layer 2, and stay secured by our layer 1.”
The rollout is one of the many Ethereum competitors to have launched this year, including Solana, Serum, and Flamingo. But so far, Ethereum remains the preferred network among users and developers alike.
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