Introduced in May 2022, Ethereum’s (ETH) novel proposal will enable the creation of a completely new type of token with never-before-seen functionalities. Familiar assets on Ethereum (ETH) and other EVM blockchains will be upgraded to small decentralized applications.
Adding executable scripts to Ethereum (ETH) tokens: What is ERC-5169?
The ERC-5169 proposal will introduce a new feature called scriptURI() to help locate token-bound executable scripts. As such, cryptocurrency tokens will be able to have advanced features thanks to third-party scripts from their issuers. Stacy Muur, Web3 researcher and educator shared a breakdown of the novel concept in its X.
The new proposal is based on the Uniform Resource Identifier or URI. By creating cryptocurrency tokens, their issuers will be able to bind specific code logic to them. Once the token is created and linked to a script, token holders will be able to access and use the linked script by calling scriptURI function.
During this process, scripts can be located in various storages, both centralized and decentralized, to ensure maximum flexibility and composability in DeFi:
It could be on decentralized platforms like IPFS, GitHub, or even regular cloud storage. The goal is to provide flexibility while guaranteeing authenticity.
Once this standard is approved and implemented, it will pave the way for many use cases. First, users will be able to run applets using nothing more than a single token and an associated script.
Additionally, developers can use this concept to create browser add-ons or automated security instructions, the researcher added.
New token experiences for the Ethereum (ETH) ecosystem
The experience of using token-script layouts with URIs can be compared to using “smart keys” when opening doors:
Think of an office door that only opens to employees with a special token. Once an employee receives the token, he instantly knows how to open the door because the instructions (script) are linked directly into the token.
However, the introduction of ERC-5169 tokens poses a number of security challenges. All parties involved must ensure that only the issuer can control the script linked to this or that token.
This should be achieved by using “permanent” storage for scripts or by protecting them using some multi-signature mechanisms, the researcher concluded.
