Token-Bound Accounts. Yes, you read that right!
🤖 If you haven't heard about ERC-6551 yet, you're missing out.
Here's everything you need to know about the new token standard that will change the way we interact with our wallet. 💸
We'll be exploring the topic in three sections:
1⃣ What is ERC-6551?
2⃣ Use cases for the new token standard.
3⃣ More content on ERC-6551!
Part 1⃣: What is ERC-6551
This new token standard allows NFTs to OWN assets.
What does this mean, well, an ERC-6551 token can hold other assets inside of it.
On a more technical level, ERC-6551 allows for the NFT wallet to sign transactions and messages and directly own assets just like any other wallet can today!
The fact that this one token can subsequently hold multiple other tokens means that multiple assets can be transferred in one transaction!
@BennyGiang gives an example in his article (linked at the end of the thread) showing the usefulness of this feature.
Taken from Benny's article:
Scenario A — WITHOUT token bound accounts
“Bob mints an Apple NFT from a project called Fruits. A few months later the project decides to airdrop $FRUIT tokens which are automatically deposited in the same wallet.
At an IRL event they issue out a bunch of POAPs for collectors to claim. When Bob decides to sell his Apple NFT none of the tokens, POAPs, or transactions relating to the Apple NFT are transferred.”
Scenario B — WITH token bound accounts
“Bob mints an Apple NFT and later receives $FRUIT tokens as an airdrop. POAPS received through IRL events are transferred to the Apple NFT’s account/wallet.
When Bob sells his NFT everything will come with it. All of the transaction history/provenance is also recorded within the Apple NFT and is something that will be later reviewed by a serious potential buyer”
-- End of Benny's example.
As you can see, this now allows people to buy, sell and transfer bundles of assets, unlocking lots of value for groups of assets!
This also can save gas fees, as transferring multiple assets can now be done in one transaction!
Let's explore some more use cases...
Part 2⃣: Use cases for ERC-6551
The possibilities are endless with what you can do with token-bound accounts! I prefer referring to them as bundled assets.
Use-case 1: Video game characters
Imagine you're playing an RPG and your character just slayed the final wassie boss and the loot is the one and only @loomdart blueberry of truth!
Now your character, represented as an ERC-6551 of course, can actually carry that item!
What does this mean?
If you want to transfer your character from one wallet to another, you can do so in one sweeping transaction and have all your character's attributes and items follow with it!
Your character wants to sell the mighty blueberry? No problem either!
Use-case 2: DeFi
Hear me out.... DeFi ETFs...
Imagine being able to buy a basket of tokens at the exact allocation you'd like... IN ONE TRANSACTION?
This is one of the many applications ERC-6551 can have on DeFi.
I can spend a whole thread just discussing the many different potential implementations of ERC-6551.
It'll be exciting to see what the genius builders in the space come up with as the standard gets adopted!
Part 3⃣ : More content on ERC-6551!
Other people have done great jobs covering ERC-6551 as well.
Starting with @WhatTheLJW's great breakdown on the topic.
twitter.com/WhatTheLJW/status/1671156620376805381
@BennyGiang's article announcing the launch of ERC-6551:
medium.com/future-primitive/tldr-nfts-have-their-own-wallets-try-it-here-http-tokenbound-org-6fac135a1f9d
Link to the EIP:
eips.ethereum.org/EIPS/eip-6551
Link to demo on testnet:
tokenbound.org/
Where do you think the ERC-6551 standard will be adopted first?
What about this new token standard excites you most? Gaming? DeFi? Collectible NFTs?
Let's discuss in the replies!
Also shoutout to @2lambro for inspiring me to make a GIF for this one!
Tagging for your thoughts on this
@_FabianHD
@pt1mfv_
@francescoweb3
@DeFiMinty
@schizoxbt
@Subli_Defi
@0xsurferboy
@rektdiomedes
@chilla_ct
@defi_mochi
@CryptoKoryo
@2lambro
@thelearningpill
@0xFlips
@crypto_yuvi
@burstingbagel
Tagging for your thoughts on this pt2
@DAdvisoor
@Louround_
@CJCJCJCJ_
@crypthoem
@0xSalazar
@WinterSoldierxz
@jake_pahor
@kindahangry
@Slappjakke
@arndxt_xo
@CryptoShiro_
@ThisIsM1NH
@crypto_linn
@rektfencer
@NNovaDefi
@0xShinChannn
@DefiIgnas