ERC-6551 is a new token standard that offers NFT composability, security, adaptability, and ownership on the blockchain. ERC-6551 offers Token Bound Accounts (TBAs) to each NFT, making this standard capable of a significant technological leap for the NFT ecosystem. Stapleverse is the first project to use the ERC-6551 token standard, pioneering the new era of NFT-owned assets.
What is ERC-6551: Token Bound Account?
ERC-6551 is a token standard like ERC-721 specifically developed to empower NFTs. NFTs based on this token standard are dynamic and can own other tokens as well. ERC-6551 NFTs have their wallets and can record transactions keep the owner’s identity, and interact with other web3 apps. Since these NFTs have their own web3 wallets, these wallets are called Token Bound Accounts or TBAs.
- CreateAccount: This deploys the ERC-721 token given the implementation address
- Account: This function is responsible for the Token Bound Account Address
This ensures reduced operational efforts and inexpensive deployment of the clone contracts for NFTs using the minimal proxy.
Use Cases for ERC-6551 Token Standard:
TBA has limitless possibilities when it comes to NFTs. It gives you the freedom to interact with other apps and assets. Tie tokens to NFTs, participate in DAOs in a new, and boost your staking rewards. Let’s take a look at the use cases for ERC-6551 Token Bound Account.
1. NFT Composbility:
ERC-6551-based NFTs give NFTs additional features like collecting in-game items in a single NFT instead of keeping each separately. Also, it becomes a lot handy to stake multiple assets and collect rewards using this token standard. Moreover, TBA allows owners to bundle similar assets in one place and the transfer of such assets becomes a lot easier between different platforms and parties.
My SAPIENZ is now the proud owner of a @doodles, @Azuki, @CryptoKitties, @moonbirds, and a special @ourZORA @futureprimitive open edition NFT!— BG ✳️ ERC6551 (@BennyGiang) May 9, 2023
ON MAINNET. ONCHAIN. IT WORKS. https://t.co/6x5y4hbe9Q pic.twitter.com/aPI9KhGVWo
NFT 3.0: ERC-6551
NFT 1.0 was all about scarcity. This upgraded into utility and interactivity as we moved to blockchain games with NFT 2.0. With TBA starts a new era of NFTs which is the identity and the membership of the owner and the assets owned.
Besides these two main use cases, this new token standard offers many other utilities:
- Equipping digital outfits and items
- Token earnings, staking, and airdrop models
- DAO participations
- Opensea Bulk trade
- Ability to layer on the social model and become Identity
To get started with ERC-6551, you can start with token-bound accounts with an Ethereum wallet, similar to other NFT standards. For creating your own TBA, you will require to write, test, and deploy the ERC-6551-based smart contracts.
ERC-6551 and Token Bound Account empower and upgrade NFTs by giving them new functionalities and features. This dynamic nature of NFTs will start a new phase of blockchain games, user identity, Web 3, and dApps.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.