Decoding the new standard ERC-6551: A new way of playing NFTs in wallets

New standard ERC-6551: A novel way to play NFTs in wallets.

Author: BITWU.ETH, Crypto KOL

Table of Contents

1. What is ERC-6551?

2. In what ways does ERC-6551 establish new standards and narratives for NFTs?

3. What are the new gameplay and opportunities of ERC-6551?

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What is ERC-6551?

ERC-6551 is a new standard that creates smart contract wallets for NFTs, making them more composable, dynamic, and interactive through the 6551 standard. In other words, NFT itself serves as a wallet with its own wallet address.

Previously, if we bought BAYC, we needed to put it in MetaMask.

But with ERC-6551, a wallet similar to a small fox is created for your BAYC, which is called Token Binding Account (TBA).

Simply put, it’s like wearing your underwear outside. In the future, ERC-20, ERC-721, and other tokens you buy will be in the TBA of this BAYC, not in the “little fox” wallet. ERC-6551 has been tested and officially launched on Ethereum mainnet on May 7th.

What changes does ERC-6551 bring to the crypto world?

ERC-6551 significantly enhances the functionality of ERC-721 NFTs, making them more practical than ever before, primarily in the following three ways:

1. Strong On-Chain IP

Before TBA, V God and other big names once vigorously promoted SBT (Soul Binding Token), which confirmed identity by scraping wallet assets. TBA does not need to verify identity because it is itself an identity. This attribute turns NFT from a “static asset” into a flowing asset management system. For example, @punk6529 is actually benefiting from this model.

2. Instant Confirmation

TBA’s NFT can directly interact with dApps. In GameFi and SocialFi, users can identify asset identities at a glance through NFT, greatly reducing the cost of confirming ownership. It can be widely used in airdrops, loyalty programs, and in-game rewards.

3. Anti-Fraud

Anonymity and fraud are topics that cannot be avoided in the crypto world. One important reason is the low cost and inability to identify wallet identities. TBA balances the two by giving “expensive” virtual identities. To some extent, it can purify the fraudulent atmosphere in the crypto industry.

What new gameplay and growth points will ERC-6551 bring!

The strong correlation and positional interchangeability between WALLET and NFT may change the following areas.

1. NFT market

It may give birth to new blue chips, enhance the head effect, and solve the liquidity problem of NFT, so it may bring price growth to blue chips on ETH.

2. Encryption social going out

Institutions in China are very interested in binding social networks like @DeBox_Social. The TBA’s low-cost verification mechanism will greatly solve the web2 trust mechanism and transaction costs. Everyone can pay attention to similar projects.

3. Lightweight games

It may change the cumbersome interaction process of web3 games, the single function of pet NFT, and other issues. Therefore, it may bring growth and outbreak to Gamefi in the second half of the year.

Some tips about ERC-6551

1. Once you sell TBA’s NFT, other bound assets will be transferred together.

2. When transferring, just aim at the NFT, without knowing the wallet address it is bound to.

3. An NFT can be bound to multiple wallets. According to the proposal, users may leave ports that they can add themselves in the future.

Conclusion:

1. ERC-6551 and EIP 4337 complement each other in simplifying some complex things. These small technological advances may become the catalyst for the next bull market, so this is why we pay attention to the progress and development trends of these technologies.

2. Due to the continuous upgrade of technology, NFT’s functions will continue to have new gameplay, especially under the collaboration of Gamefi. I continue to be optimistic about NFT on ETH and believe that NFT on ETH will shine again.

For the BRC20 ecology and Ordinals NFT, it is actually a new attempt. The Ordinals protocol has just come out and is still iterating. More new gameplay may emerge in the future. With so many giants laying out, there may be opportunities for another outbreak in the short term.

Therefore, these two are different applications of different ecologies and can even complement each other. We should continue to pay attention to both.

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