YEREVAN (CoinChapter.com) — The ERC-404 token standard is one of the latest innovations in the blockchain space and allows users to own a portion of NFTs. It represents a unique blend of ERC-20 and ERC-721 technologies used to create non-fungible tokens (NFTs), enabling fractional ownership of digital collectibles.
If ownership falls below the full NFT value represented by the token, users will instead only hold fractional tokens. However, after accumulating enough fractions to form an entire NFT, users will get the NFT back in their collection. However, there is no guarantee that you will get the same NFT again, and it may be different from the original.
Although the idea is new, it has already caught the attention of investors and some tokens have made significant profits. For example, the PANDORA token, which became the first ERC-404 token, recently hit an all-time high of $32,800.
Other ERC-404 tokens that have gained popularity and skyrocketed in price include 404BLOCKS, ANON, EthereRock404, and DEFROGS.
ERC-404? I still don’t understand
In essence, ERC-404 is the ultimate rulebook for a very special kind of toy box in the digital playground of the Ethereum (ETH) blockchain. This is no ordinary toy box. It is designed to hold digital toys, which we call NFTs. However, the most unique feature of the ERC-404 standard is shared ownership. Instead of only you having ownership of a specific toy, you and your friends can each own a share of one toy. This makes the game and space fun for everyone and also helps reduce the cost of NFTs for each person.
The magic of ERC-404 is that it helps everyone know which digital toy in the game belongs to whom. This allows you to share and play together across a variety of games without any confusion.
You can also allow your friends to play with the toys. With ERC-404, it’s like saying “You can play with my toys in the game, but they still stay in my toy box and at the end of the day they’re mine.”
Here’s another way to look at it. Imagine you have an old toy you no longer want. Imagine taking it to the park and allowing other kids to purchase partial ownership of it. This allows you to save up money to buy new toys while also sharing them with others.
For those new to NFTs, this feature is especially useful for businesses, selling real estate, and conducting fundraising activities. Do you like games? The ERC-404 standard helps in partial ownership of in-game items and features, making the overall experience more inclusive. The technology of the new ERC-404 token will undoubtedly prove valuable in numerous industries and use cases.
To ensure that fights do not break out in the sandbox, ERC-404 tokens still exist on the blockchain, ensuring that the entire ownership process is seamless, smooth, and secure.