Regarding the upcoming ETH integration on the Internet Computer, I’m curious to know if there will be a need for a separate smart contract for each ERC20 token, or if users will be able to send any ERC20 token and receive its wrapped ICP version without needing a specific contract for each token?
We’ll have to set up a separate ledger for each ICP twin token because of the ICRC-1 standard design choices. Getting away with a single minter contract for all ERC20 tokens might be possible, but I’m not sure it’s a good idea:
- This design decision introduces additional complexity, and minters will be highly complex without this feature.
- We must have a separate ledger anyway, so I don’t think we can significantly improve the user experience.
There will be separate ERC20s deployed on Bitfinity but it will be a single canister for the EVM.
In this scenario, I fail to perceive any enhancement over conventional bridges that depend on developers to create smart contracts for individual ERC20 tokens. Consequently, there won’t be a smooth transition of ETH tokens to ICP tokens.