The ERC-6551 Protocol, a new innovation in the field of blockchain technology, is turning any NFT into a full-fledged Web3 wallet, enabling it to hold other tokens besides just cryptocurrencies. As we know, many Web3 wallets like MetaMask have been mislabeled as wallets, as they lack many of the features of a typical wallet. They don’t hold an address or keys, don’t act as passports, nor do they store collectibles or works of art. ERC-6551 is changing that.
The protocol introduces token-bound accounts, allowing every NFT to have its own smart contract account, effectively turning it into a wallet that can not only hold assets such as ETH, USDC, pepe coins but also participate in social governance by participating in voting on proposals. This transformation gives every NFT its own account address, which enables it to talk to other tokens without having to go through MetaMask. In simpler terms, an individual NFT can have a wallet that can hold any other token or NFT.
Benny Giang, the co-founder of Future Primitive and the historic CryptoKitties NFT collection, spoke with host Chase Chapman on the On the Other Side podcast about the inspiration behind the protocol. Giang and Jeff Staple, the renowned streetwear designer, collaborated to create Sapienz, a PFP project that aims to revolutionize fashion and storytelling through PFPs. The project’s success prompted Giang to ask why PFPs should remain static, which led him to propose a wallet that could hold digital hoodies or t-shirts to complement a user’s PFP’s changing outfits.
The problem, according to Giang, is that keeping things on-chain adds complexities that hinder the NFT’s functionality, with gas fees being the greatest barrier. However, attending a hackathon in San Francisco gave him and Staple the “a-ha” moment that led to the creation of ERC-6551. ERC-6551 gives every NFT its own smart contract account or wallet, which allows it to interact with other tokens without having to go through MetaMask.
ERC-6551’s introduction essentially gives NFTs a passport, allowing them to have access to bank accounts, voting rights, and a range of functions. It could even lead to personality traits through the application of AI, adding additional layers of immersion and engagement that could stand to revolutionize the very nature of NFTs themselves.
ERC-6551 opens up new opportunities for the NFT world. It unlocks potential use cases that were previously limited by the need for a third-party wallet. The ability to use NFTs as wallets introduces a new level of functionality that was previously unexplored. By extending NFTs beyond the traditional collectibles use case and giving them new functions, NFTs’ value proposition now includes its ability to participate in social governance, hold tokens, and even interact with other NFTs, further cementing their place as revolutionary digital assets.
According to https://blockworks.co/news/erc-6551-nft-wallet
The material in this article is written on the basis of another article.