Deployment Modes of eERC
Understanding Standalone and Converter deployment modes of eERC in the Avalanche ecosystem.
The eERC standard offers two deployment modes to fit different project needs: Standalone Mode and Converter Mode.
Both deliver encrypted balances and private transfers, but they differ in how the token is created and used.
Standalone Mode
- Token is private from creation, all balances and amounts are encrypted from the first mint.
- Uses ElGamal encryption over the BabyJubJub curve for privacy.
- Transaction proofs use Poseidon hashing for efficiency in zk-SNARKs.
- Optional hidden total supply to prevent public insight into circulation.
- Best suited for:
- Enterprise payment systems.
- Regulated financial assets with selective auditor access.
- Private gaming economies on Avalanche L1s.
Converter Mode
- Wraps an existing ERC-20 token into an encrypted form.
- Allows private transfers using the eERC format while preserving the option to unwrap back to the public ERC-20.
- Uses the same encryption and proof flow as Standalone Mode.
- Best suited for:
- Adding privacy to an already deployed public token.
- Hybrid systems where some transactions are public and others private.
- Bridging between public liquidity pools and private markets.
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In the next section, we will explore Use Cases of eERC, including examples from Avalanche C-Chain Mainnet, Fuji (Testnet), and custom L1 deployments, along with a step-by-step view of a private transfer flow.
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