erc20

Abstract

This document specifies the internal x/erc20 module of the BlockX Chain.

The x/erc20 module enables the BlockX Chain to support a trustless, on-chain bidirectional internal conversion of tokens between BlockX' EVM and Cosmos runtimes, specifically the x/evm and x/bank modules.

This allows token holders on BlockX to instantaneously convert their native Cosmos sdk.Coins (in this document referred to as "Coin(s)") to ERC-20 (aka "Token(s)") and vice versa, while retaining fungibility with the original asset on the issuing environment/runtime (EVM or Cosmos) and preserving ownership of the ERC-20 contract.

This conversion functionality is fully governed by native $BCX token holders who manage the canonical TokenPair registrations (ie, ERC20 ←→ Coin mappings). This governance functionality is implemented using the Cosmos-SDK gov module with custom proposal types for registering and updating the canonical mappings respectively.

Why is this important? Cosmos and the EVM are two runtimes that are not compatible by default. The native Cosmos Coins cannot be used in applications that require the ERC-20 standard. Cosmos coins are held on the x/bank module (with access to module methods like querying the supply or balances) and ERC-20 Tokens live on smart contracts. This problem is similar to wETH, with the difference, that it not only applies to gas tokens (like $BCX), but to all Cosmos Coins (IBC vouchers, staking and gov coins, etc.) as well.

With the x/erc20 users on BlockX can

• use existing native cosmos assets (like $OSMO or $ATOM) on EVM-based chains, e.g. for Trading IBC tokens on DeFi protocols, buying NFT, etc.

• transfer existing tokens on Ethereum and other EVM-based chains to BlockX to take advantage of application-specific chains in the Cosmos ecosystem

• build new applications that are based on ERC-20 smart contracts and have access to the Cosmos ecosystem.