Is NFT the same as a wallet? Objective analysis of the pros and cons of ERC-6551.

Proposal ERC-6551 is a new token standard that represents a disruptive upgrade to the original NFT standard. In the ETHGlobal Waterloo hackathon that ended in late June, four out of eleven finalists were based on the ERC-6551 protocol.

This immediately drew attention to the appeal of this new protocol, which has a high concept.

ERC-6551, as an extension, is compatible with most previously deployed NFT protocols, and the expanded NFTs can be used as the positioning of the account itself to achieve nested and combined NFTs. Moreover, when an NFT is transferred, it is equivalent to the transfer of all associated assets, which further makes it regarded as the most suitable NFT extension for the on-chain and GameFi scenarios.

1. NFT as a wallet is not the first attempt</h3

For a detailed interpretation of the operating mechanism and deployment guide, as well as the attempts and development of NFT protocol history on protocol expansion, the complete research report has been submitted to the research channel of the Web3Caff platform (a head-paid research report platform, currently conducting a joint activity of 14jun fans, using “shisi” as a recommended code to extend the membership period by 15 days).

3. How to evaluate ERC-6551?

3.1. Advantages come from the high customization of CA

Because its deployment essence is a CA address, except for the inability to sign, relying on EOA transactions to drive it, its attributes (including Nonce) are no different from normal EOA addresses, so it makes NFT have the same carrying capacity as EOA accounts.

It is easy to transfer in batches, which directly transfers the ownership of the account itself, similar to the account itself in On-Chain games

But it should be noted that it still needs EOA transactions to drive it, and the identity subject on the chain is not the address corresponding to the private key in EOA, so some statements: “Your NFT can interact with dApp independently without relying on the wallet that holds it”. This is incorrect.

Due to the positioning of on-chain identity, any angle related to identity can be reproduced again.

3.2. The disadvantage comes from the necessity of relying on the application layer

Often, when I comment on me, I will say that the advantage is obvious, but the limitation is xx, but in the face of ERC6551, it is the opposite, because its advantages are not so obvious, but the limitations are very obvious, because “Why must it be him” It is difficult to explain.

For the composability of on-chain NFTs, this is not the ability of ERC-6551 itself, but the basic function of CA wallets themselves, as for the amplification through NFT transfer enabled by ERC-6551, it is more like a market-based way to price and execute the fair account transfer.

So the root of the problem will return to, why would NFTs expect to be combined in this way?

If it really has meaning, it can only be said that the gas consumption for trading a large number of NFT assets at the same time is very low. However, I think most users may only want to sell some furniture, not to sell the entire house in bulk. Even for the game NFT assets in a certain game side, the game side should not want players to sell their accounts and leave, so its natural support is limited.

As for the core narrative of SocialFi, the combination of Web3 social and ERC-6551 also has the same issue, that is, social interaction itself should not encourage the selling of accounts. Otherwise, the focus will be on data that is being bought and sold.In summary, the current market’s attention to new standards is essentially due to pessimism about the lack of innovation in NFT protocols. The lack of actual value mapping for current NFTs may not be a problem at the protocol layer, but rather at the application layer. The large number of NFTs generated by the current generation needs to be consumed by diverse user demands on the blockchain. Just as ETH is always valuable in the long run because the more prosperous the ecosystem becomes, the higher the transaction fees required, NFTs themselves should also be a kind of consumable, with expiration dates and burnable properties that can be combined to produce higher net value products.

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