The Ethereum network might witness a significant transformation due to an Ethereum Improvement Proposal (EIP) known as ERC-6551, which aims to revolutionize the non-fungible token (NFT) segment. This EIP might not only lead to the advent of the next-generation of NFTs but could also enhance the functionality of current ones, including Apes and Mutants, according to Spartan Labs, a leading venture studio.
Introduced just five weeks ago by the founders of CryptoKitties, one of the first successful NFT collections, ERC-6551 offers numerous unprecedented opportunities for the NFT and digital identity sectors. This EIP allows NFTs to control ERC-4337-enabled cryptocurrency wallets. As a result, NFTs can carry out transactions, store assets, and interact with DeFi protocols, just like regular non-custodial wallets.
The capabilities of NFTs powered by ERC-6551 are vast. Owners can collect POAPs (Proof of Attendance Protocol tokens) and showcase them in a transparent, tamper-proof manner. In decentralized games, NFTs can be associated with in-game wallets, enhancing the gaming experience for players of all generations.
Beyond this, Spartan Labs researchers have identified numerous other applications for NFT-powered wallets. These could make Web3 publishing platforms mainstream by enabling more democratic content monetization models. Furthermore, the interfaces of decentralized messaging platforms could be enhanced with these NFTs. Traders could share their NFT addresses to transparently display their profits and losses and trade history, all verifiable through blockchain explorers.
ERC-4337 was one of the biggest developments for the wallet space earlier this year.
— Spartan Labs (@TheSpartanLabs) June 16, 2023
But ERC-6551 is building on that to revolutionise the NFT space. ERC-6551 will change the way we view NFTs and digital identities.
Here's how, and why you should care 🧵 pic.twitter.com/dHwmXKDmic
Importantly, ERC-6551 is backward compatible, meaning all existing NFTs can be equipped with ERC-6551 functionalities. This could radically transform the global NFT ecosystem.
