Web3Caff's article "ERC6551: A New NFT Standard for Social and Gaming" discusses the innovative NFT standard ERC6551 proposed by Future Primitive. This new standard has attracted great attention in the NFT community because it has the potential to open up huge possibilities for new and existing NFT projects without packaging or relying on centralized companies.
The concept of ERC6551 was proposed by Benny Giang, a veteran in the crypto consumer and NFT fields and co-founder of Future Primitive. The development of ERC6551 follows the principles of backward compatibility with existing NFTs, decentralization, and simplicity of implementation to allow innovation within the NFT field without the need for extensive security audits or rewriting the code base.
The proposal introduces a registry contract deployed on each chain to authorize all NFTs on that chain. The contract uses the CreateTo function to assign a predetermined wallet address to each NFT. These addresses, called Token Bound Addresses (TBA), are more than just properties; they are fully functional wallets/accounts that can hold other NFTs, ERC-20 tokens, POAP, and any future token standards.
The following diagram illustrates the relationship between NFTs, NFT holders, token binding accounts, and registries:
source：https://eips.ethereum.org/EIPS/eip-6551
The Ethereum and Polygon communities were among the first to adopt the standard since the first TBA activation in May 2023. There are 64,000 active TBAs, 1,800 TBA-related transactions, and 18,000 NFTs active across all EVMs.
Source：Dune
ERC6551 has several advantages over other NFT solutions, such as the ability of NFTs to hold other assets, compatibility with existing dApps, and decentralization.
ERC-6551 turns each NFT into a smart wallet that can own tokens and interact with dApps in the Ethereum ecosystem.
In the gaming space, ERC6551 allows in-game assets associated with character NFTs to be seamlessly transferred to new owners during transactions, significantly improving the experience. The transparency and security of this transaction mechanism can enhance the gaming experience. Additionally, in social networks, enabling TBA for social profile NFTs allows the creation of blockchain-based identities customized for social profiles, not just wallets. This has significant implications for organizations seeking to build and leverage social or interest graphs.
The introduction of TBA also brings significant changes to NFT market dynamics, including pricing and bidding processes. This requires buyer protection measures to prevent end-user exploitation, such as establishing escrow for NFTs with active TBA and double confirmation of accepted bids and transactions.
All in all, ERC6551 represents a refreshing innovation in the NFT space, which has the potential to reinvigorate the NFT market by introducing new features. This is especially beneficial for the next generation of NFT projects.
Disclaimer: This article does not constitute any investment advice.