Developers plan to store cryptocurrency within NFTs.
Developers have recently introduced a new Ethereum Improvement Proposal (EIP) that proposes a new way to use nonfungible tokens (NFTs). This system allows all NFTs to have a smart contract account, which enables them to store other NFTs or crypto tokens.
Cointelegraph interviewed Jayden Windle and Benny Giang, the authors of EIP-6551 from Future Primitive, to explain the proposal’s use cases and its implications for the crypto space.
Windle explained that the ERC-6551 gives NFTs their own wallets, allowing them to own any asset on-chain and perform any on-chain action. By giving NFTs wallets, they become users on Ethereum.
The idea came to life when the Future Primitive team was working on an NFT project where they wanted to add equipping as a mechanism. They realized that nothing set the use case they wanted to achieve, which was to have NFTs own their own items in a self-sovereign way.
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ERC-6551 can be applied to blockchain gaming as an inventory system, as well as decentralized autonomous organizations (DAOs), where the history of a DAO member can be placed into the NFT itself. Airdropping assets into NFTs can also potentially increase the value of the assets.
Giang believes that the new mechanism can bring social identity to NFTs, adding new functionality to buying, selling, or trading NFTs. He explained that three new actions can be pursued with NFTs: become, interact, and use. Giang believes this will make NFTs entirely different from jpegs, becoming new internet identities. Furthermore, ERC-6551 is already live on the Ethereum mainnet and has been applied to an NFT collection called Sapienz.
The developers also demonstrated how NFTs can be placed inside NFTs, which can go on infinitely. They showed a family tree of NFTs within NFTs.
“You can create applications using NFTs that own other NFTs, and all of this information is available on the blockchain. You can create on-chain applications that use this hierarchy of NFTs to build exciting experiences,” Windle explained.
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