The innovative Ethereum (ETH) plan, which is scheduled to be unveiled in May 2022, is expected to make it possible to create whole new types of tokens with never-before-seen functions. Small decentralised apps based on well-known assets on the Ethereum (ETH) and other EVM blockchains will be improved.
Bringing executable scripts to Ethereum (ETH) tokens: What is ERC-5169?
A new method named scriptURI() will be added by the ERC-5169 proposal to make it easier to find executable scripts linked to tokens. As a result, third-party scripts from their issuers will enable enhanced functionality for cryptocurrency tokens. Stacy Muur, a Web3 researcher and educator, broke down the unique idea on her X.
https://x.com/stacy_muur/status/1710279140077658467?s=20
The foundation of the new idea is the URI, or Uniform Resource Identifier. The issuers of cryptocurrency tokens will have the ability to attach certain code logic to them when establishing them. By invoking the scriptURI function once the token has been generated and connected to a script, token holders can access and utilise the linked script.
To enable maximum flexibility and composability in DeFi, scripts can be hosted in a variety of storages, both centralised and decentralised:
It could be stored on decentralised systems like GitHub, IPFS, or even standard cloud storage. Giving freedom while maintaining authenticity is the goal.
This standard will open the door for several use cases once it is authorised and put into use. Users will first be able to launch tiny apps with just a single token and a corresponding script.
The researcher continued, “Developers can also use this idea to create browser add-ons or automated security instructions.”
New token experiences for Ethereum (ETH) ecosystem
When combining token-script designs with URI, the experience is comparable to using “smart keys” to open doors:
Imagine an office door that can only be opened by authorised personnel with a unique token. The instructions (script) are connected directly in the token, so as soon as an employee receives it, they immediately know how to unlock the door.
However, the introduction of ERC-5169 tokens brings with it a variety of security issues. All parties should confirm that the script associated with each token can only be controlled by the issuer.
The study came to the conclusion that it should be done either by employing “permanent” storage for scripts or by safeguarding it using some multi-signature procedures.
