Published June 19, 2023
ERC-6551 (aka token bound accounts) presents a game-changing NFT standard that transforms these digital assets into smart wallets able to engage with multiple decentralized apps on the Ethereum network.
Though NFTs have been largely associated with collections and artwork, this protocol enables any NFT, even those currently held in users' wallets, to transform into a smart contract wallet capable of owning tokens.
Blockworks recently spoke with Jayden Windle, co-author of ERC-6551, who shared his belief that NFTs have the potential to be more than just a passive asset.
Windle has been working on Future Primitive for the past year and a half, and this experimental project led to the development of ERC-6551. This new technology enables the transfer of not only the NFT itself but also the wallet and related tokens.
In the realm of blockchain, there are two fundamental actions, as elucidated by Windle. One can either hold and possess digital assets or utilize them for active engagement in the larger ecosystem.
By endowing an NFT with a wallet, one is enabling it to engage on par with everything transpiring on the chain.
Managing Inventory with NFTs
Creating a wallet for every NFT makes for an agile inventory system.
By simply locating the address of your NFT and copying it onto Metamask, you can begin to send assets from your wallet to the NFT wallet. This allows you to easily access all the assets in your NFT wallet via OpenSea. In fact, wallets are the key player on Ethereum as they are the universal layer of ownership and action.
Windle's latest project within the realm of ERC-6551 NFTs is Sapienz. Through this project, avatars' clothing items are represented as unique tokens, providing each piece with its own NFT classification and token-bound account.
With this, you can maximize the potential of your NFT ownership by equipping and unequipping tokens onto the artwork, resulting in a unique and captivating display visible across all platforms.
It’s a good idea to utilize ERC-6551 mechanics, not only for its limited capacity but also for its vast possibilities in the gaming and character-based industries, where your NFT can truly shine with its distinct identity.
The potential applications of ERC-6551 extend beyond gaming. According to Andrei Ponivesc from UltimStudio, the blockchain technology can also be leveraged for organizing hassle-free trips and travel.
In a recent Twitter thread, Ponivesc shared that an exciting possibility could involve a marketplace for tour guides to offer curated experiences with specified itineraries.
Offering NFTs with pre-planned experiences can become a lucrative revenue stream for tour guides. What's even more valuable, as Ponivesc points out, is the ability to include additional NFTs within the main one.
These could come in the form of instructions or tickets that are required at specific stages of the experience.
ERC-6551 tokens will seamlessly integrate with your ERC-721 tokens, eliminating the need for new smart contract deployments.
If your marketplace supports ERC-6551 tokens, you must ensure that robust fraud prevention measures are implemented to prevent any malicious activities.
Final Thoughts
Embracing the ERC-6551 standard truly signifies a paradigm shift in the way we perceive and use NFTs. No longer are they simply passive assets for collection or investment. Instead, they become dynamic, multi-functional tools, opening up a myriad of opportunities in industries like gaming, tourism, and beyond.
This technology enables us to unlock new layers of engagement and interaction within the Ethereum network, making each NFT a potent agent of transaction and value. What's more, the concept of NFTs as wallets integrates seamlessly with the existing Ethereum ecosystem, extending the usability of NFTs without the need for disruptive new deployments. While this is undeniably exciting, it also highlights the increased need for robust security measures. As NFTs evolve into wallets and take on a more active role in transactions, it's crucial to ensure that robust fraud prevention measures are in place to secure these assets and the transactions they participate in.
The transformation heralded by ERC-6551 represents just one step towards the future of decentralized digital assets. As we continue to explore and expand the possibilities, we're excited to be part of this innovative journey. We invite you to join us and our knowledgeable community in these discussions, as we navigate and shape the future of the NFT landscape together.
Want to stay on top of the latest? Join our growing and knowledgeable community Discord and sign up for the BlockSpan NFT API newsletter here.
