Blockchain community divided over new ERC-404 tokens

The Controversial ERC-404 Token Standard: A Game-Changer in the Crypto World?

The emergence of a new token standard in the blockchain industry, called ERC-404, has sparked both praise and criticism from industry experts.

This innovative standard combines the features of ERC-20 and ERC-721 tokens, the latter being commonly used for non-fungible tokens (NFTs). One notable application of ERC-404 is in the creation of fractionalized NFTs, where ownership of a single NFT, such as the popular Bored Ape Yacht Club, can be divided among multiple wallet holders.

ERC-404 was developed earlier this year by two pseudonymous individuals, known only as “ctrl” and “Acme,” under the project name Pandora. The first ERC-404 token, also named Pandora, was issued on February 6th and has since achieved an impressive 530% return, currently trading at $23,484 with a market cap of $235 million. The developers have plans to further improve the protocol by reducing gas fees by 28% to 50%.

However, not everyone is convinced of ERC-404’s potential.

The Impact of ERC-404 on the Crypto World Today

In the world of cryptocurrency, there is a constant push towards innovation and advancement. One of the latest developments is ERC-404, a new type of token that has sparked both excitement and criticism within the community. Let’s take a closer look at what this token is and how it differs from standard ERC procedures.

According to Miguel Prada, co-founder and tech lead at Diva Staking, the negative feedback surrounding ERC-404 stems from its deviation from traditional ERC standards. As a result, some argue that it cannot be considered a true ERC token. Prada cautions that while there is a lot of hype surrounding ERC-404, its potential impact on Ethereum remains uncertain.

While Prada acknowledges the potential for ERC-404 tokens to bring liquidity to the illiquid NFT market, he also points out significant limitations. For example, when it comes to NFTs representing real-world assets, it is not feasible to exchange fractions of a token that represent different asset classes.

Ryan Lee, chief analyst of Bitget Research, shares similar sentiments. While he notes that many ERC-404 tokens have seen a surge in value shortly after their creation, he also warns that widespread adoption may be a challenge. According to Lee, the ERC-404 protocol is still experimental and has not yet been formally included in the Ethereum Foundation’s ERC standard.

The Game-Changing Standard of ERC-404 in the Crypto World Today

Akash Mahendra, head of developer relations at layer-1 blockchain Haven1, believes that the new standard, ERC-404, is a “game changer” in the crypto world. According to Mahendra, this standard allows users to purchase and own tokens that comply with both ERC-20 and ERC-721, similar to owning an “exchange-traded fund in the decentralized finance world.”

In simpler terms, if a user buys a full ERC-404 token, the corresponding NFT will be minted to their wallet. However, if they choose to hold a fraction of the NFT as an ERC-20 token, they can still benefit from price movements without having the minting rights. This flexibility is what sets ERC-404 apart from other standards.

Despite gaining momentum, ERC-404 has yet to receive official acceptance from the Ethereum Foundation. It is currently under review as an Ethereum Improvement Protocol. Mahendra also cautions about the risks associated with using a standard that does not have an official approval stamp.

The Differences Between Web 2.0 and Web 3.0: A Crypto Perspective

Web 3.0, also known as the “decentralized web,” is a significant upgrade from its predecessor, Web 2.0. While Web 2.0 was primarily focused on user-generated content and social media, Web 3.0 revolves around decentralization, blockchain technology, and cryptocurrencies.

This shift has given rise to various innovations such as crypto real estate, DeFi, NFTs, and DAOs. These concepts, along with the growing popularity of cryptocurrencies, have transformed the way we perceive and interact with the internet.

One of the most significant differences between Web 2.0 and Web 3.0 is the ownership of data. In Web 2.0, data is controlled by a few centralized entities, while in Web 3.0, users have full control over their data through blockchain technology. This shift towards decentralization has also led to increased privacy and security for users.

The Impact of Crypto on Traditional Finance: Insights from Yahoo Finance

The rise of cryptocurrencies has not gone unnoticed by traditional finance giants like Yahoo Finance. In recent years, Yahoo Finance has expanded its coverage to include cryptocurrencies, recognizing their growing influence in the financial world.

Crypto has also brought about new investment opportunities, such as full send crypto, where investors can benefit from the volatility of the market. This has opened up a whole new world of possibilities for investors, making it crucial for traditional finance institutions to keep up with the ever-evolving crypto landscape.

The Future of Crypto: From Bitget to Web 3.0

As the crypto market continues to grow, more and more platforms are emerging to cater to the needs of investors. One such platform is Bitget, a leading crypto exchange that offers a wide range of trading options for users.

However, Bitget is just one example of the many innovations that are being developed in the crypto world. With the rise of Web 3.0, we can expect to see even more advancements in the crypto industry, bringing us closer to the vision of a decentralized future envisioned by Tim Berners Lee, the creator of the World Wide Web.

According to Tim Berners-Lee, the inventor of the World Wide Web, the rise of Web 3.0 brings about a new era of innovation in the crypto world. However, investors must exercise caution before investing in new ERC-404 projects as they lack proper audits, making them more susceptible to bugs and potential losses. As we eagerly anticipate the outcome of this exciting development, it is important to understand the differences between Web 2.0 and Web 3.0 and the impact of technologies like DeFi, NFTs, and DAOs on the world of crypto. Yahoo Finance provides valuable insights into the crypto market and its latest trends, including the growing popularity of real estate investments in the form of crypto assets. To navigate this rapidly evolving landscape, it’s crucial to keep track of platforms like Bitget, which offer a comprehensive range of crypto services.

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