Author: Loot Adventure Translation: MetaCat
In 2017, the ERC-721 standard was introduced to Ethereum, establishing a new way to tokenize digital assets. NFTs have been widely used in areas such as gaming items, digital art, music, virtual land, and identity. In recent years, developers have been exploring how to make NFTs more dynamic and interactive, and ERC-6551 has attracted attention as something that expands the possibilities of NFT usage.
ERC-6551 is a system that provides smart contract accounts for each ERC-721 token (NFT). The related smart contract is called a Token Bound Account (TBA), indicating that it is “bound” to ERC-721. The control of a token bound account belongs to the holder of the linked NFT. This means that ERC-6551 can be seen as a technology that establishes a proprietary contract account for a specific NFT holder. It can be considered as a technology that turns NFTs into wallets – essentially “NFT as wallet”. Because it is backward compatible with ERC-721 NFTs, it can be applied to all existing NFTs that comply with the ERC-721 standard.
Here are some examples of combining ERC-6551 with the blockchain gaming field:
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Onboarding Tools
Source: https://www.pokemon-card.com/products/xy/20th.html
We will explore the potential of using ERC-6551 as an onboarding tool for Web3 services. By utilizing Token Bound Accounts (TBA), we can bundle NFTs and FTs and utilize the functionality of linking them to a single NFT. For newcomers, it is a big challenge to prepare the necessary tokens or NFTs when trying to use Web3 services. In the context of mass adoption, it is unrealistic to expect every user to first purchase tokens on a centralized exchange (CEX), then transfer them to a non-custodial wallet, and then buy the desired NFT on the market. This is where TBA comes in. Service providers can bundle the NFTs or FTs required for their services, link them to an NFT, and send that NFT to the user, making it easy for users to get started. Specifically, in blockchain games, we can imagine bundling the initial characters and specific tokens of the game.
Portfolio Market
Source: https://crypto.com/university/crypto-portfolio-management
Similar to onboarding tools, the functionality of bundling NFTs and FTs can be considered for portfolio trading scenarios. This means that individuals can use NFTs and FTs that they expect to appreciate to build portfolios, hold them within TBA, and trade portfolios by trading NFTs associated with TBA. By fully utilizing the features of TBA as smart contracts, assets invested in staking pools or similar assets can also be traded within TBA. Without revealing the contents of the portfolio, we believe it is feasible to establish a portfolio trading market through NFT transactions by disclosing investment performance through zero-knowledge proofs.
Using ERC-6551 for Chain Abstraction
As mentioned in the “Cross-chain Compatibility” of EIP, when configuring Token Binding Accounts (TBA), the “Chain ID” can be set to the value corresponding to the NFT from different chains. In addition, the addresses generated for TBA remain consistent across all chains. To actually utilize TBAs deployed across multiple chains, users need to verify that they hold specific NFTs on the specified chain, which requires the use of cross-chain communication tools such as Layerzero, chainlink-ccip, or Lit.
We are excited about the potential of combining ERC-6551 with cross-chain functionality. In simple terms, it allows for aggregating assets on all EVM-compatible chains under a single NFT. This enhances our vision of NFTs as proxies and maximizes the amount of information they can hold. With the maximization of information, countless possibilities of composability and interoperability arise.
Using ERC-6551 in Blockchain Games
Finally, let’s take a look at how ERC-6551 is used in blockchain games. Taking Loot Adventure as an example, Loot Adventure is a blockchain game with the theme of “pursuing unique blockchain fun” and has three characteristics: interoperability, composability, and accumulation. An important technical element of this game is its use of ERC-6551.
The basic process is as follows:
① Apply ERC-6551 to Loot NFT and deploy Token Binding Accounts (TBA) across multiple chains.
② Strengthen the Loot NFT by equipping NFTs or FTs onto the deployed TBA.
③ Use the strengthened character to explore dungeons and earn NFTs as “experience points”, which accumulate in the TBA in the form of SBT.
④ Battle in the arena with the strengthened character and earn FTs.
Since we deploy TBA across chains, we can collaborate with NFT projects and blockchain games on all EVM-compatible chains, providing utility as character equipment.
In terms of interoperability, we can leverage assets from existing Web3 projects. From the perspective of composability, Loot NFTs are extended for use in blockchain games. And in terms of accumulation, experience points obtained through the game accumulate in the character’s TBA, making full use of ERC-6551 in these three characteristics.
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