After the combination of graphics and currency becomes popular, which new protocols can succeed ERC-404?

A hot topic brought by php editor Strawberry: With the rise of the combination of graphics and currency, what kind of new protocol will take over ERC-404? This issue has attracted much attention. In the field of digital currency, new technologies and protocols are constantly emerging, which may become strong competitors to ERC-404. These new agreements may bring more innovation and development opportunities, let’s wait and see.

The popularity of Pandora has made the combination of graphics and currency become a new narrative for encryption. Some new projects have also taken advantage of Dongfeng to use the ERC-404 protocol standard to create NFTs, and have received support from top crypto exchanges or institutions such as OKX. .

Although the author has always believed that the combination of graphics and currency itself does little to help the liquidity of NFT. From a certain perspective, it is just a novel gameplay of tokens and cannot solve the problem of insufficient liquidity of NFT. However, recently, the transaction amount of Pandora's single NFT has continued to break new highs - Pandora #54222 NFT was traded at a price of 533 WETH, setting a record so far. In the past, NFT projects were able to sell for this price, mostly blue-chip projects such as BAYC and CryptoPunks. Pandora, which was founded less than a month ago, has set such a record, which to a certain extent means that the combination of graphics and currency may be one of the driving forces for the NFT sector to become brilliant again.

Although ERC-404 is a representative protocol for the combination of graphics and currency, it still faces the challenge of excessive gas fees. In addition to its artistic attributes, NFT is mainly used for social and gaming purposes. If the gas fees when minting and trading are too high, it may adversely affect its future development.

In addition, the author is looking forward to the application of the graphics and currency combination protocol in GameFi. Taking the blockchain game Bigtime as an example, assuming that the NFTs that players explode in dungeons can use a graph-to-coin combination protocol to convert the NFTs into tokens for sale, the game's economic ecosystem will become more prosperous. Anyone who has played traditional online games knows that most of the equipment that is revealed is useless. Equipment that is not scarce cannot be sold and can only be decomposed. If the equipment is converted into tokens for sale with the help of the ERC-404 protocol, it can Improve the enthusiasm of players, and project parties can also use this to generate income.

As mentioned above, although the ERC-404 protocol is still in its early stages and has some shortcomings, it is not the only protocol that represents the narrative of the combination of graphics and currency. Some emerging projects have made improvements or developed new standards, and Odaily Planet Daily has compiled these related projects.

Dn-404

Dn-404 is a combination of ERC-20 and mirror ERC-721 protocols. Because it complies with the ERC-20 standard, it can add liquidity to UniSwap. Dn-404 optimizes the merged interface of ERC-20 and ERC-721 so that transfers on one side can affect the other side. Simply put, when a user owns an NFT of Dn-404, the tokens in the wallet are displayed as a certain number. Tokens, NFT displayed on the NFT interface, when one party changes, the other party also makes corresponding changes.

Currently many projects choose to use the Dn-404 protocol for the development of new projects, such as smxle and 404shape. Odaily Planet Daily reminds that the Dn-404 protocol is still in its early stages and has not yet undergone a comprehensive security review, so there may be certain risks. Everyone is advised to exercise caution when participating.

ERC-1111

ERC-1111 is a new token standard developed by the PFPASia team, also known as the REDT protocol. The protocol introduces the concept of controllable state changes, allowing users to dominate the conversion process between tokens and NFTs, effectively avoiding the Gas consumption problem caused by purchasing 1 token and minting NFT in ERC-404. This reduction in Gas helps increase the frequency of token transactions and improves the liquidity and usability of the token.

The ERC-1111 protocol can also adjust the corresponding quantity ratio of NFTs to tokens to achieve a fragmentation effect, which helps to increase liquidity levels.

At present, the PFPAsia team is the first to adopt the ERC-1111 standard and has developed 10,000 NFTs. At the same time, the ratio of NFTs to tokens is 1:10000, and is launched in two stages:

• REDTO (NFT status): 50% will be minted in the first to second quarter of 2024. ·
• REDT1 (Token Status): 50% minted on February 10, 2024.

ERC-1111 is an advanced version of ERC-404 to a certain extent. After the conversion of tokens and NFTs is controllable, the application scenarios will also expand. As mentioned at the beginning of this article, GameFi NFT trading channels will be more abundant.

ERC-X

ERC-X can use multiple standards in one standard (ERC-20, ERC-404, ERC-721, ERC-721A, ERC-721Psi, ERC-1155 and ERC-1155Delta), this protocol mainly combines the ERC-1155Delta protocol, ERC-1155Delta is an extension of the ERC-1155 standard. When ERC-1155 mode is enabled, ERC-X also generates ERC-721 tokens, enabling compatibility with markets that support either standard.

The official introduction mainly shows that its Gas fee is lower than ERC-404 and Dn-404, as shown below.

However, it is controversial whether reducing the Gas fee will determine whether the protocol will become a mainstream protocol in the combination of graphics and currency. Judging from the current ERC-404 representative project Pandora, the project launch and wealth effects Maybe it can become the standard of measurement.

represents the project as MINER, and ERC-X is also the standard developed by the project. However, when MINER was first released, there was a double-spend problem, and the token price dropped by nearly 40%. It has now been fixed.

ERC-404

ERC-404 was developed by the Forge project, mainly to improve the NFT ID overload problem of ERC-404. Due to the constantly changing number of NFTs in ERC-404 due to the constant trading of its tokens, Thus, the constant NFT ID faces an overload problem.

ERC-404 introduces a new mechanism to solve this problem, adding the _burnedTokenIds array to track all IDs of burned (or destroyed) NFTs. Once the total supply limit is reached through minting, the contract design will recycle the IDs of new NFTs from the _burnedTokenIds array, ensuring that no new ID exceeds the total supply limit. This approach not only keeps the ID sequence within the expected range, but also effectively keeps the NFT ID within a certain range by using the ID for new releases.

But this move seems to be able to control the rarity of NFT through monitoring. The solution of determining the rarity of each NFT ID seems to be less random. At the same time, ERC-404 may be upgraded to meet the corresponding standards. If this condition is met, the subsequent development of the agreement may be hindered.

The current representative project of ERC-404 is FORGE.

In addition, there are many similar protocols, all of which were born by improving the related issues of ERC-404. At present, basically every project integrating graphics and currency will produce new protocol standards, but these "ERC" standards have not gone through the formal Ethereum Improvement Proposal (EIP) process and are not officially recognized ERC standards. Odaily Planet Daily reminds everyone again to pay attention to risks and invest prudently.

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