#Write2Earn #TrendingTopic #ERC404 #NFT‬⁩ What is ERC 404? Is It Worth Investing In?

So, what is this new hype about? A new token standard in the market, ERC-404, is launched in February 2024! With interoperability, better operations, and improved use cases, this new standard is all set to rule the crypto space. A few developers recently sparked the Ethereum space with this new token standard. 

As mentioned earlier, the Ethereum network has two significant token standards, ERC-20 and ERC-721. ERC-20 token standard is for fungible tokens, which function like digital cash. ERC-721 token standard is for the non-fungible tokens or NFTs. These two standards have operated in isolation, solving two different purposes. However, a group of developers decided to work on this system and change it!

In this new system, traders can buy and sell NFTs as usual or sell parts of them as tokens. Despite being an “ERC” token standard, it has to undergo the typical vetting process defined for all ERC standard tokens. The process includes submitting improvement proposals (EIPs) and requests for comment phase (ERC). It is done to ensure that Ethereum upgrades are thoroughly tested and reviewed by the community. Since it has to undergo the required quality check, it can be exploited by the bad players around. Let us see if it passes the quality check or not!

The emergence of ERC-404 has ushered in a mix of emotions by the traders. Being widely accepted in a very short period, ERC 404 is already seeing rivals! A comparable concept known as Divisible NFT (DN404) soon arrived, boasting a “revitalized” approach. Amidst the rivalry with DN404, the demand for streamlined coding to mitigate the rising transaction costs associated with ERC-404 is quite critical. It needs to beat it to overcome the challenge! 

Despite the hurdles, the advent of these new tokens marks a pivotal moment in the NFT sector! However, due to its unofficial nature, many NFT platforms do not support it. The arrival of these tokens could lead to more unaudited token standards going to market too.$ETH