ERC 6551 Introduces a New Paradigm for NFTs and DIDs

Biteye

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ERC 6551 Brings a Technological Leap for NFTs and DIDs

Original Title: " ERC 6551 Introduces a New Paradigm for NFTs and DIDs "

Original Source: Biteye

Team Introduction

The Future Primitive team recently introduced Token-Bound Accounts (ERC 6551), a new technology that will provide each NFT with its own account/wallet address.

Future Primitive is a development studio composed of staff from several prominent Web3 companies, led by a member of the CryptoKitties/Dapper Labs founding team and co-founder of Bitski. Future Primitive is on a mission to shape the future, building on the momentum around NFTs of the past 5 years to imagine what the next 5 years will look like. They believe that Token-Bound Accounts will be a significant technological leap for the NFT ecosystem, benefiting project founders, collectors, and builders. Below is an introduction to the newly launched Token-Bound Accounts (ERC 6551) by Futrue Primitive and CryptoKitties co-creator Benny Giang on Twitter, with some content modifications.

02 Existing Problem

What if an NFT had its own wallet?

Inspired by Soul Bound Tokens (SBTs), our idea is quite the opposite; we call it Token Bound Accounts (TBAs). Instead of binding the NFT to a wallet, we have wallets bound to the NFT.

Our vision is that NFTs are evolving towards this self-sovereign identity, not merely images lying in a little fox wallet.

They have the ability to own assets, perform on-chain operations, and most importantly, create their own narrative.

In fact, since 2020, people have been converging around NFTs to form a unique identity.

But what is the key issue?

These NFTs are still just a form of static asset and, apart from being traded, they don't seem to have a function to create a transaction history. Current NFTs do not come with transaction history, signature control, and linked ownership.

So when we talk about where this NFT comes from, it always remains somewhat unclear.

03 Our Solution

It wasn't until the emergence of ERC 6551 that we truly addressed this issue.

If we give each NFT its own wallet, then it can sign its own transactions, hold assets, and connect as an NFT to other dapps.

The advantage is that there is no need for significant changes to the current ERC 721, Wrapped-contract, or NFT holder behavior.

As the token-bound account uses a smart contract wallet for binding, once ERC 6551 goes live, every NFT will automatically have a bound address without any additional operation needed.

For example, if John receives an Apple NFT from a project and later the project decides to airdrop tokens to NFT holders and also releases a series of POAPs for holders to claim.

Scenario A—No Token-Bound Account Used

When John decides to sell his NFT, the associated tokens and POAPs will not transfer to the buyer.

Scenario B—Token-Bound Account Used

All associated tokens and POAP claims related to the NFT will be recorded on the NFT itself. When selling the NFT, the buyer will also see these records, and all relevant tokens and POAPs will transfer to the buyer. If these are missing, the value of the NFT may be significantly reduced.

(Translator's Note: Think about BAYC, the value difference between a monkey holding an APE airdrop and one that sold their APE. You can see how important this feature is!)

If you are interested, you can experience it on our testnet: https://tokenbound.org

04 Summary

Since the birth of ERC 721 in 2017, there has been little in the way of significant innovation like ERC 6551.

With ERC 6551 or Token-Bound Accounts, we are able to seamlessly add new ownership layers on top of all existing and new NFTs, opening up new use cases on-chain that most project creators have been wanting to add but have not found a simple way to do so.

Equipping digital wearables and items (RTFKT—CloneX, Doodles) ERC 20 token earning/airdrop models (BAYC, Cool Cats, SupDucks) POAPs or badges earned through participation (Azuki, FWB, Moonbirds) Treating an entire collection as a unit for trading (OpenSea batch transfers)

NFTs as on-chain identities with the ability to layer on top of a social network model (CryptoPunks, Nouns)

ERC 6551 is poised to become a new force driving the entire industry forward, benefiting all participants, ushering in a new paradigm for NFTs and DIDs!