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The proposed ERC 6551 token standard for NFTs is a development that would allow digital assets to own other tokens, potentially changing the landscape for NFTs and the Metaverse. Interesting.

I spoke with Laura Shinn about a recent episode of . unchain podcastBenny Giang and Jayden Windle, two authors of the Ethereum Improvement Proposal (EIP) ERC6551said the new standard would allow NFTs to own other tokens, essentially equipping them with their own “wallet”.

What is ERC6551?

Token standard proposal introduced in Februaryfocuses on creating a system that assigns smart contract accounts to all ERC-721 (non-fungible tokens). This allows these tokens to own assets and interact with applications without changing existing ERC-721 smart contracts or infrastructure.

The system consists of two main components: a non-authoritative registry and a standard implementation interface for deploying token-binding accounts.

The registry deploys a unique smart contract account for each ERC-721 token, allowing the token to interact with the blockchain, record transaction history, and own on-chain assets. Control of each token-bound account is delegated to the holder of her ERC-721 token, allowing the holder to initiate on-chain actions on behalf of the token.

This proposal aims for maximum backward compatibility with existing non-fungible token contracts. It also uses an EIP-155 chain ID to uniquely identify his ERC-721 token, optionally allowing support for multi-chain token-bound accounts.

Developer reaction

of initial Developer discussion of this proposal centered around potential security implications, such as the risk of registry duplication and the need for authenticity verification. Proposals included creating a registry for a broader registry of account implementations and normalizing that proposed registry due to its non-permissive nature.

The proposal also highlighted the potential impact on cost savings of airdrops, with arguments that also raise security concerns about adding metadata to NFT registries.

More than 160 comments from Ethereum developers recently raised concerns that the proposal was still in “draft” status and could undergo significant changes. Finally, the finalization of the names of the functions and their potential impact on EIP implementers was discussed.

Benefits of ERC 6551

As Giang explained on the Unchained Podcast, ERC 6551 was caused by a simple query.

“What if we have an NFT project with a character, which we sometimes call a PFP (Profile Picture) project? It was like, “Is that what you’re doing?”

This question led to the creation of the ERC 6551 standard, which allowed NFTs to own other tokens, essentially giving them their own “wallet”.

Jan added:

“Are you pursuing an off-chain method of building your database, with all this kind of centralized control that can render NFTs? Like all items applicable in

Through a journey like this, we realized that there was a potential solution for those of us who had been in the dark for the past 8-9 months. ”

Giang and Windle also discussed the pros and cons of pursuing an on-chain or off-chain method for applying all NFT-possessed items as transactions.

They concluded that the ERC 6551 standard is a potential solution to limitations posed by previous attempts to standardize asset-owned NFTs, such as the need for custom logic in smart contracts. The ERC 6551 standard overcomes these limitations and gives NFTs the same rights as Ethereum users, allowing them to own and act on assets.

Podcast guests also noted that while ERC 721, ERC 1155, and soulbound tokens exist as ways to own items on Ethereum, ERC 6551 gives every existing ERC 721 its own wallet. I also emphasized that it is not a token standard in the traditional sense. Unlock a new layer of NFT compatibility.

ERC 6551 usage example

According to the creators of the EIP, the introduction of ERC 6551 has created exciting prospects for various industries. This allows NFTs to own assets and perform actions autonomously, potentially beneficial to games, DAOs, infrastructure and tools, and social networks.

Zhang mentioned several projects such as “Sapiens,” “Fuel World,” and “Parallel Trading Card Game,” which leverage gamification standards. “It makes a lot of sense to decentralize our game inventory,” commented Giang. Thus, such games allow characters to have their own wallet and act independently in the game.

Decentralized Autonomous Organizations (DAOs) such as The Station and Dowhaus are also considering the standard to monitor engagement within their communities, Jiang said. Additionally, the infrastructure and tools industry, represented by “Manifold,” “Nosis Guild,” and “Rabbit Hole,” are reportedly working to develop modules in line with this standard.

Giang hinted at a future where NFTs could become network playable characters (NPCs), digital entities capable of performing on-chain actions controlled by humans or AI models. This could solve the “empty world problem” observed in many digital worlds.

The ERC-6551 proposal described by Jayden Windle is simple.

“With this standard, a token-bound account is its own type of wallet. Therefore, an NFT can have a unique wallet address that can own any asset. This is a concept Windle explains, “ It becomes a fractal very quickly.”

In this standard, a token-bound account is its own type of wallet. Therefore, NFTs can have unique wallet addresses to own their assets. However, it is important to note that while any Ethereum wallet can control NFT’s wallet, ownership of token-bound accounts will always be owned by NFT.

If approved for emergence and adoption of the ERC 6551 standard, it could make important developments that extend the capabilities of NFTs and increase their usefulness.

By Jules

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