Here’s How Developers Aim To Store Crypto Inside NFTs

Developers recently published an Ethereum Improvement Proposal (EIP) that introduces a new way to use non-fungible tokens (NFTs). With this system, all NFTs can have a single smart contract ledger, allowing them to store other NFTs or crypto tokens.

Cointelegraph spoke with Future Primitives’ Jaden Windle and Benny Giang, the authors of ERC-6551, to explain the use cases of ERC-6551 and its implications for the crypto space.

According to Windle, while there is a lot of complex work behind the feature, the simple way to explain it is that they are offering NFTs in their crypto wallet. he explained:

“The real simple idea behind ERC-6551 is that every NFT has a wallet. So, your NFTs have a whole wallet that owns your NFTs. That means your NFTs own any assets on the chain And your NFTs can do whatever they want on the chain. By giving NFTs wallets, NFTs are now users of Ethereum.”

When asked how the idea came to life, the Future Primitive developer explained what his team described as a “rabbit hole of experimental oddities”. He shared that he was working on an NFT project where he wanted to add mechanics as a tool. The project lets NFTs wear clothing and other accessories that are also NFTs.

“What we realized was that it didn’t really set up the use case that we really wanted to achieve. We really wanted the NFT to own its own objects in a self-sovereign way. that worked with all the existing tooling,” he explained.

Furthermore, Windle also shared that they wanted other projects to take advantage of this new mechanic and create something that could be applied to NFTs in general.

Possible use cases for ERC-6551

In terms of use cases, the developer also said that it could be applied to blockchain gaming and could take the form of an inventory system. Furthermore, it can also be used in Decentralized Autonomous Organizations (DAOs), where instead of the history being separated by the NFT and wallet of the DAO member, it can be kept in the NFT itself. In addition to these, airdropping assets into NFTs can also potentially increase the value of NFTs as well.

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As the new mechanic holds endless possibilities, Cointelegraph asked Jiang what it could mean for the crypto space. The NFT veteran said that in addition to asset ownership, it can also bring social identity to NFTs. This brings new functionality in addition to being able to buy, sell or trade NFTs. He explained that:

“We are trying to introduce three new actions that you can pursue with NFTs. It has become, interact and use. You can be your NFT, you can interact with it and you can use your NFT.”

This, Giang believes, will make NFTs completely different from JPEGs. According to Jiang, this could be the new identity of the Internet. Furthermore, the Future Primitives executive explained that if artificial intelligence (AI) were to be used, it could completely transform NFTs into on-chain network playable characters (NPCs) in blockchain-based games.

In addition to these, Jiang highlighted that ERC-6551 is already live on the Ethereum mainnet. “It is not a conceptual idea. It is not like a testnet. It is real,” he explained. According to the co-founder of Future Primitive, they have already implemented it in an NFT collection called Sapienz.

NFT setup: NFT who owns NFT inside NFT

Cointelegraph asked the developers if there is a limit to how far NFTs can be placed inside an NFT. According to the pair, it can “go crazy really quickly” and move infinitely. They performed the family tree of NFTs within NFTs.

“You can build applications around NFTs that own NFTs, own NFTs, and have it all available on-chain. You can build applications on-chain that use that hierarchy of NFTs to create really cool experiences.” applications,” Windle explained.

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