Cryptocurrency enthusiasts, please be safe. That’s because a new technology is emerging on blockchain that could shake up the way we think about NFTs. It is called ERC-404We aim to bridge the gap between the two most popular token types.
Think of the ERC-404 like a hybrid car. It seamlessly blends the characteristics of ERC-20 tokens (divisible and interchangeable tokens like Bitcoin) with the characteristics of ERC-721 tokens (unique, one-of-a-kind collectibles like digital art). . So what does this mean for the average NFT collector or investor?
First of all, ERC-404 could change everything about fractional ownership. Imagine owning a small piece of a very rare gemstone. Cryptopunk, for example. This standard could also lead to dynamic NFTs that morph and change over time. It’s like a digital butterfly evolving within the frame.
Right now, ERC-404 is still experimental.. But early projects are already gaining traction, suggesting it could be more than just a passing fad. If it’s successful, the NFT landscape as we know it could look radically different in the years to come.
If you would like to know more about this topic or would like to learn more about a specific ERC-404 project, please let us know!