Here’s how developers aim to store crypto inside NFTs

Developers have recently released an Ethereum Improvement Proposal (EIP) that introduces a novel approach to working with nonfungible tokens (NFTs). This system grants all NFTs the capability of having a smart contract account, providing them the ability to save other NFTs or crypto tokens.

Cointelegraph interviewed Jayden Windle and Benny Giang of Future Primitive, the creators of EIP-6551, to discuss the possible applications of the proposal and its effects on the crypto industry.

Windle states that, although the feature involves a lot of intricate processes, the easiest way to understand it is that they are providing NFTs with their own cryptocurrency wallets. He elaborated:

When queried about the inception of the concept, the Future Primitive creator revealed that the group embarked on what he called a “rabbit hole of experimental oddities”. He divulged that they were engaged in a NFT enterprise in which they wished to incorporate equipping as a feature. The venture allows NFTs to don apparel and other add-ons, all of which are also NFTs.

“It became apparent that there was no existing use case that could provide us with what we desired – the ability for NFTs to own their own items in a self-governing manner, and to do so in a way that would be compatible with all existing tools,” he elucidated.

Furthermore, Windle expressed their desire for other projects to be able to capitalize on this new mechanism and construct something that could be applicable to NFTs in general.

Potential use cases for ERC-6551

The developer mentioned that this technology could be utilized for blockchain gaming, taking the shape of an inventory system. Moreover, it can be applied to decentralized autonomous organizations (DAOs), where a member’s history is not stored in an NFT and a wallet, but rather in the NFT itself. Additionally, airdropping assets into NFTs could potentially raise the value of the assets.

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Cointelegraph questioned Giang as to what the potential implications could be for the cryptocurrency sector with the introduction of this new technology. The NFT expert asserted that, in addition to asset ownership, it could also provide social identity to NFTs, thereby expanding the capabilities of purchasing, selling, and exchanging NFTs. He stated:

Giang is of the opinion that NFTs will be completely different from jpegs and will become new online identities. Moreover, the Future Primitive leader stated that if Artificial Intelligence is used, it can turn NFTs into characters that can be played on blockchain-based games via an entire on-chain network.

Giang emphasized that ERC-6551 is currently operational on the Ethereum mainnet. “It’s not a hypothetical concept. It’s not a trial network,” he said, noting that it has already been used in an NFT collection called Sapienz.

NFT inception: NFTs that own NFTs inside NFTs

Cointelegraph inquired from the developers if there was a limitation to how many NFTs can be put inside each other. The two responded that this can very quickly become “unmanageable” and can go on without limit. To illustrate this, they presented a family tree of NFTs nested within NFTs.

Windle explained that you can create applications that involve NFTs owning other NFTs, which can be accessed on the blockchain. Furthermore, it is possible to create blockchain-based applications that utilize this NFT hierarchy to create unique experiences.

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