A bizarre Ethereum Improvement Proposal (EIP) that was released a month ago has the potential to completely alter the technical structure and business model of the non-fungible tokens (NFTs) market. It can progress the tooling of current Apes and Mutants in addition to opening the door for new generations of NFTs.
ERC-6551 blurs lines between NFTs, smart contracts and wallets
ERC-6551, which was only presented five weeks ago, presents a wealth of never-before-seen prospects for the NFT and digital identification arena. The VC arm of The Spartan Group, Spartan Labs, came to this conclusion.
This EIP allows non-fungible tokens to command cryptocurrency wallets that use the ERC-4337 standard. It was co-authored by the creators of CryptoKitties, the first commercially successful NFT collection. For instance, much like ordinary non-custodial wallets, NFTs may execute transactions, hold assets, and communicate with DeFi protocols.
The potential of ERC-6551-powered NFTs appears to have no end. A POAP collection and tamper-proof display of it can be made by the owner of such NFTs.
Such NFTs may be connected to in-game wallets in decentralised games. For different player generations, this will result in a more immersive gaming experience.
The ERC-6551: Non-fungible Token Bound Accounts proposal is currently listed on the Ethereum Foundation’s EIP site as having a “Draught” status.
Web3 media, decentralized messaging, reputation management: Plenty of new NFT use cases
Researchers from Spartan Labs pointed out a number of additional intriguing applications for NFT-powered wallets. Thanks to more democratic content monetization strategies, they could finally mainstream Web3 publishing platforms.
Then, such NFTs may be used to enhance the user interfaces of decentralised messengers. To show their PnL and trading history, traders can even reveal the addresses of their NFTs. Since this data is accessible to everyone via explorers, it cannot be changed.
Since this ERC is backward compatible, all current NFTs may be outfitted with all of the ERC-6551 functions. The narrative in the global NFT ecosystem may be drastically altered as a result.
