Original Title: "IOSG Weekly Brief | Creating a New NFT Standard for Social and Gaming: ERC6551 #207"

Original Author: Ishanee, IOSG Ventures

ERC6551 is a new proposal put forward by a third-party team (Future Primitive), which has recently caused a sensation in the NFT community. The reason is simple - it opens up vast possibilities for new and existing NFT projects without the need for packaging, using complex multi-threaded ERC combinations, or relying on centralized companies.

The Beginning of the Story

ERC's first author, Benny Giang, has several years of experience in the cryptocurrency consumer industry and handling NFTs. He was an early member of the Cryptokitties and NBA TopShot teams, and even co-founded Bistki. A few years ago, he and Jayden Windle founded FP as consultants to provide creative and advisory services to brands and projects looking to launch new NFT series. While working on a project, the team encountered an issue and began conceptualizing ERC-6551 - the client wanted a set of NFTs where each NFT itself contains any future benefits provided to it, and if the original NFT is traded in the future, it will not lose these benefits.

The team had some basic principles when developing 6551, which they shared at ETH Lisbon:

·It should be backward compatible with existing NFTs.

·It should be decentralized and permissionless.

·It should be a simple (ideally one-time) implementation so that NFT projects do not have to rewrite code libraries that may involve security issues.

Please pay special attention to the third point, because NFT projects usually have limited resources (compared to the wider crypto market), so there is less budget for security audits. Teams often copy and use industry "standards", leaving little room for innovation and experimentation.

ERC-6551 Proposal Brief Explanation 

This proposal introduces a Registry contract, deployed on each chain, to empower all NFTs on that chain. The Registry contract uses the CreateTo function to assign a reserved wallet address to each NFT. CreateTo allows developers to deploy smart contracts to reserved addresses.

The deployed smart contract (account) is called a Token Bound Address (TBA). This address is bound to an NFT, and any mother wallet that owns the NFT can fully access it. Since TBAs are wallets/accounts themselves, they are not just properties; they have all the functions of any other wallet and can hold other NFTs, ERC-20s, POAPs, and/or any future token standards adopted.

source：https://eips.ethereum.org/EIPS/eip-6551

Data Tracking

Since the activation of the first TBA in May 2023, the Ethereum and Polygon communities have been among the first to rapidly adopt this standard. There are a total of 64k activated TBAs across all EVMs, 1.7k TBA-related transactions, and 18k NFTs within the activated TBAs.

TBA Most Active NFT Collector

The most active TBA holds 999 NFTs

The most active TBA on Ethereum

Source: Dune

The most active TBA (linked to Good Minds #3206) owns many other NFTs in this series, which can be seen by tracking TBA's activity on Etherscan. This is a unique use case for TBA. The NFT wallet continues to collect other works in the same series, so a certain percentage of the total tokens in the series will be owned in the same wallet.

Any bid on this NFT (3206) must technically take into account the prices of all assets collected in its TBA (to be announced) (assuming that the assets have not been traded or transferred from the NFT at the time of sale).

An NFT with the TBA of a Good Mind NFT has a certain percentage of other NFTs in the same series nested under its TBA. The development of the TBA standard is carried out by tokenbound.org, which collaborates with multiple teams and hopes to incorporate this standard into its products.

Comparison with other NFT standards and companies

Although there have been various NFT solutions in the past, none have the same advantages as TBA/6551. Key criteria to consider include:

·Do NFTs require packaging or additional steps?

·Is the new standard compatible with existing dApps?

·Is it decentralized?

Source：IOSG Ventures

ERC-6551 Use Cases

Game Aspect

Games like Illuvium and Colony incentivize players to accumulate in-game assets. Typically, as players progress through the game, their wallets accumulate assets. However, when trading roles, the associated assets do not seamlessly transfer to the new owner. Instead, players often choose to sell the entire wallet, ensuring that the main character and its associated assets are sold together.

After enabling TBA-enabled role NFTs, players can now sell experienced role NFTs and eliminate the need to sell the entire wallet or go through a multi-step or bundled sales process. Assets held in TBA seamlessly transfer to the new owner upon completion of the sale.

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