The New Non-Fungible Token Standard ERC-6551: What Does It Mean?

The ERC-6551 is the latest standard for Non-fungible tokens (NFTs), and it has the potential to revolutionize the Non-fungible token ecosystem. In addition, TBAs (Token Bound Accounts) which are the latest category of NFTs is compatible with the already existing ERC-721 Non-fungible tokens.

The TBAs enable NFTs to have smart contract capabilities, thereby improving their functionality, and this makes them function as smart contract wallets. Therefore, this type of NFT will be able to contain other digital assets and NFTs.

The addition of this functionality makes Non-fungible tokens more useful and valuable by introducing some nice features. Thereby making this class of digital assets worth more than just an overpriced picture. These features include

Composability: This functionality makes it possible for holders to combine Non-fungible tokens with other assets into a single profile. These assets can then be moved together.

Identity: Non-fungible tokens can relate to decentralized applications on their own, as they can now have their own account.

Provenance: A holder can have a total understanding of an NFT’s history beyond just ownership.

Dependency: An NFT can now relate to platforms and on-chain properties, which enhances its worth and functions.

Nevertheless, it should be known that there are still some challenges to this standard, and they include security, user-friendliness, and adoption.

To Investors
With the wide adoption of NFTs, one should expect to witness a surge in the value of this group of assets. Non-fungible tokens have a lot of possible uses in the identity, gaming, and art industries. Also, there are other use cases that may soon be uncovered. As an investor, you should monitor this sector closely and stay tuned.

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