ERC-6551 is a groundbreaking Ethereum standard that enables token-bound accounts (TBAs) for each ERC-721 NFT, effectively transforming NFTs into smart contract accounts. This innovative protocol significantly enhances the capabilities of ERC-721 NFTs by allowing them to operate as their own smart contract accounts, making them more versatile and functional than ever before.
What is ERC-6551?
ERC-6551 is an Ethereum standard for token-bound accounts, which creates a smart contract wallet for every ERC-721 NFT. This update is based on the Ethereum Improvement Proposal 6551 (EIP-6551) created by Future Primitive — an on-chain product studio led by Benny Giang and Steve Jang.
A token-bound account is a customizable and upgradeable smart contract account powered by ERC-4337, which can be used to store assets, make transactions, and execute utility functions. Token-bound accounts also keep an unalterable record of all on-chain activities executed by the accounts.
Possible Use Cases for ERC-6551
ERC-6551 is an emerging standard on Ethereum, and innovation for token-bound accounts is accelerating rapidly. Here are some use cases of TBAs that will supercharge the potential of NFTs:
- On-chain wallets for NFTs: ERC-6551 allows NFTs to own assets and interact with other applications, enhancing their functionality, security, and interoperability.
- Multiple wallets within a single NFT: An NFT can now contain multiple token-bound accounts via ERC-6551, enabling it to hold multiple wallets and other assets.
- Cross-chain compatibility: ERC-6551 uses EIP-155 support to identify ERC-721 tokens along with their contract address and token ID. This enables smart contract authors to optionally support multi-chain token-bound accounts.
The arrival of ERC-6551 marks a historic milestone in the NFT space, opening up new possibilities and aligning NFTs more closely with real-world use cases, making them more practical and relatable for users. As adoption and experiments continue to grow, the future of NFTs will be transformed, offering increased versatility and interactivity within the blockchain ecosystem.