The Ethereum (ETH) community is proposing a new standard called ERC 7265. There is some criticism of the security of decentralized finance (DeFi) protocols on the network. A new standard could provide a solution for this.
What is an ERC standard?
ERC stands for Ethereum Request for Comments and is a protocol used to propose improvements for the Ethereum network. These proposals may include different aspects of the Ethereum network.
Each ERC is identified by a unique number for identification. One of the best-known ERCs is ERC-20, which defines the standard for creating fungible tokens on the Ethereum network. This standard has been adopted by many projects and has led to the explosive growth of tokens on the Ethereum network.
A backup stop should prevent hacks
The proposed standard will be called ERC 7265. The unique functionality that it enables is a so-called backup stop. This means that a transaction of tokens can be stopped, which can help to hackers to counteract. The standard will be built in such a way that it can be updated over time.
According to dates from The Block shows massive amounts of hacking in DeFi. At the moment, a total of $3 billion has been hacked since the existence of DeFi protocols. It’s clearly a big problem. The ERC 7265 standard gives developers the ability to respond to a hack.
According to Ant Banka developer of the DeFi stablecoin Fluid Protocol, ERC 7265 is an essential solution to the problem:
ERC 7265 allows teams to create a circuit breaker that protects their protocol, with highly customized rate limit parameters per asset
It remains to be seen whether the standard will actually be added to the Ethereum network, and this will in any case take quite some time. Adoption and implementation are also subject to approval by Ethereum’s core developers.
