ERC-6551: Innovation and Challenges of the New NFT Standard

Recently, a new token standard called ERC-6551 has attracted widespread attention. As an innovative upgrade to the original NFT standard, ERC-6551 performed excellently in the recently concluded ETHGlobal Waterloo hackathon, with 4 out of the 11 projects that made it to the finals based on this protocol. This phenomenon highlights the appeal and potential of this new protocol.

ERC-6551, as an extension of the NFT standard, is compatible with most existing NFT protocols. Its core innovation lies in allowing NFTs to act as accounts, enabling nested combinations and carrying all associated assets during transfers. This feature makes it particularly suitable for on-chain and GameFi scenarios.

NFT is an attempt by the wallet

The "Token Bound Account" concept introduced by ERC-6551, (TBA), allows NFT holders to initiate on-chain operations through TBA. This idea is not original, as similar attempts have been made by the SBT and A3S protocols. The operation model of A3S is similar to that of ERC-6551, where users can mint specific NFTs to deploy smart contracts for asset management and dApp interaction.

In contrast, the advantage of ERC-6551 lies in its versatility. It is not limited to specific NFTs, but can be applied to any deployed NFT, such as Azuki or Bored Ape, making it a source of ownership.

The Operating Mechanism of ERC-6551

The core of ERC-6551 lies in its registration and invocation process. Through this mechanism, NFTs can acquire functionalities similar to EOA accounts, possessing a carrying capacity close to that of regular addresses, except for the inability to sign independently.

This feature makes it easy to transfer assets in bulk, especially suitable for account trading in on-chain games. However, it is important to note that ERC-6551 still relies on EOA transactions to operate and is not completely independent of the holding wallet.

Analysis of the Advantages and Disadvantages of ERC-6551

Advantages

1. High Customizability: As a contract address, ERC-6551 grants NFTs functionality similar to that of EOA accounts.
2. Easy for batch transfer: Simplified the transfer process of complex assets such as on-chain game accounts.
3. Identity Verification: Can be used for various identity-related application scenarios.

disadvantage

1. Application layer dependency: The advantages of ERC-6551 are not significant, and its value largely depends on the adoption at the application layer.
2. Use case limitations: For most users, the need to transfer all assets completely is not common.
3. Conflicts with certain application concepts: For example, encouraging account trading in social applications may contradict the platform's original intention.

Summary

The emergence of ERC-6551 reflects the market's desire for innovation in NFT protocols. However, the realization of NFT value relies more on innovation at the application level rather than the protocol itself. The future direction of NFT development may focus more on its attributes as consumables, such as setting expiration dates, being burnable, or having fusion upgrade features, to meet diversified user needs.