- Although ERC-721 introduced NFTs to the world, it still has many limitations.
- So, Ethereum has released a new standard that addresses all the issues of ERC-721.
- ERC-6551 looks to usher in a new era of NFTs.
The ERC-721 standard made history by introducing NFTs to the world. Since their inception, NFTs have revolutionized industries by introducing new applications in the form of static images, breedable cats, generative artwork, tickets, and more.
As NFT adoption grows, developers uncover new use cases for NFTs. However, the standard they’re built on has limitations that could hinder NFTs from realizing their true potential. This is where Ethereum’s new standard, ERC-6551, comes into play.
ERC-6551 is specially designed to propel every NFT on the network to become more dynamic, hence ushering in a new era.
What is ERC-6551?
ERC-6551 is Ethereum’s new standard for NFTs that aims to make them more dynamic and interactive. It gives ERC-721 NFTs the full capabilities of an Ethereum account using token-bound accounts (TBA).
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The new standard allows standard NFTs to go beyond static assets and assume enhanced functionality and interactivity. It deploys unique smart contracts or wallets for each ERC-721 NFT and then uses a permissionless registry to record the account’s on-chain activity.
Additionally, thanks to the ERC-4337 standard, a smart contract deployed by ERC-6551 will function like a wallet that can store assets and make transactions. Moreover, the new standard is backward-compatible with all ERC-721 tokens, meaning existing NFTs can implement the new standard without going through any hassles of wrapping assets or more.
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While ERC-721 NFTs have paved the way for mainstream adoption of NFTs and unlocked new use cases for blockchain-based assets, they’re swarming with issues such as limited provenance, lack of composability, and being too static. The new NFT standard addresses all the problems in the prior standard and brings new opportunities to the table.
What Does ERC-6551 Bring to the Table?
ERC-6551 is set to change the NFT industry by allowing every NFT to be more dynamic and functional. In hindsight, the new standard could revolutionize many industries, especially web3 gaming and on-chain identification.
Before the new standard, players who owned in-game NFTs would have their assets sit separately in their wallets. With ERC-6551 and its token-bound accounts in the mix, game developers can introduce new use cases such as inventories, gear, and other mechanics requiring multiple assets to interact with each other.
ERC-6551 also opens up opportunities for on-chain identification in various areas, such as loyalty programs, allow-listing, reward, and credit rating. Implementing on-chain identification could enhance the reliability and security of protocols, leading to more robust systems.
The sky’s the limit for NFTs with ERC-6551, and it would be interesting to see what new diverse applications will pop up.
On The Flipside
- Recently, Ethereum gas prices went to levels not seen since May 2022 because of the ongoing meme coin PEPE mania. Network gas prices have been averaging at over 100 gwei.
- One user paid 64 ETH in gas fees for a single transaction, equivalent to $120,000, due to recent Ethereum network congestion.
Why You Should Care
Ethereum’s new standard has the potential to take Web3 to another level by evolving the very nature of static NFTs to be more dynamic, composable, and interactive.
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