ERC-404 hybrid NFT tokens in ‘good spot’ for EIP push, says dev

Unofficial ERC-404: A Hybrid of Fungible and Non-Fungible Tokens for Web 3.0

An unofficial and experimental Ethereum standard, known as ERC-404, is currently in the works to become a hybrid of both fungible and non-fungible tokens (NFTs) for the evolving Web 3.0 landscape. According to one of its creators, the team behind ERC-404 is working tirelessly to submit an Ethereum Improvement Proposal (EIP) for this innovative standard.

Mixing ERC-20 and ERC-721: The Concept of ERC-404

The developers behind the pseudonymous project Pandora, ctrl and Acme, have proposed the concept of ERC-404 to combine the technology of ERC-20 tokens (used for fungible assets) with ERC-721 tokens (used for unique, non-fungible assets such as the Bored Ape Yacht Club collection). This unique blend of technologies aims to offer a new and improved standard for NFTs.

Not Yet Audited: The Reality of ERC-404

Despite its name, ERC-404 has not yet been audited and is still in its experimental stages. The team behind the standard acknowledges that the “ERC” in the name is purely for branding purposes and does not reflect any official endorsement or approval from the Ethereum community.

The Bureaucratic Process of Becoming an EIP

In an interview with Cointelegraph, ctrl, one of the developers of ERC-404, stated that the process of getting an approved EIP is quite bureaucratic. This highlights the dedication and hard work that the team is putting into making ERC-404 a reality for the Web 3.0 ecosystem.

The Emergence of Web 3.0 and Its Impact on NFTs, DEFI, and DAOs

Ctrl has not revealed the team behind the proposal, but has hinted at their past success and current progress in submitting an EIP. The proposed ERC-404 standard aims to merge the functionalities of ERC-721 NFTs and ERC-20 tokens, potentially allowing for fractionalized NFTs that can be traded and used as collateral for loans by multiple owners. However, the experimental nature of the standard has sparked debates about its safety. A developer has raised concerns about the possibility of theft by ERC-404 tokenholders if the NFT is deposited in a lending protocol that is not properly configured for ERC-404.

The Impact of NFTs on the Evolution of Web 3.0

The emergence of NFTs (non-fungible tokens) has sparked discussions about the differences between web 1.0, 2.0, and the upcoming web 3.0. According to some experts, NFTs are a key component of web 3.0 and have the potential to revolutionize the way we interact with the internet.

In a recent post, concerns were raised about the vulnerability of ERC-404 NFTs compared to ERC-404 tokens. However, ctrl, the creator of the ERC-404 standard, dismissed these concerns and attributed any potential issues to improper usage of the standard. Popular crypto wallets like Binance and OKX have already announced support for ERC-404, and ctrl believes that if there were any real vulnerabilities, they would have been exploited by now.

Pandora, the first ERC-404 token launched on Feb. 5, has already seen massive gains and a high market cap. This further proves the potential of NFTs in the web 3.0 landscape. Additionally, Pandora is currently undergoing audits for a more advanced version of the ERC-404 standard, which aims to address any integration issues.

In addition to the DeGods NFT collection, which has a market capitalization of almost $30 million, there are 12 other projects that have utilized ERC-404 and launched successfully on CoinGecko. These include a frog-themed version of the collection and a collection of ERC-404-based NFT pet rocks. These projects are all part of the growing trend of NFTs in the web 3.0 era, which also encompasses concepts such as the metaverse, internet of things, and decentralized finance (DeFi) through the use of technologies like smart contracts and decentralized autonomous organizations (DAOs). This marks a significant difference from the previous iterations of the internet, known as web 1.0 and web 2.0, and shows the evolution towards a more interconnected and decentralized world through the power of blockchain technology.

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