What are iTokens?
iToken is a token standard defined in the Harmony blockchain. It is a read-only mapping of ERC721 tokens from Ethereum to the Harmony blockchain. Any NFT tokens launched on Ethereum can apply for the mapping iToken on the Harmony blockchain. The NFT token holders can use the same account and identity in Harmony to participate in the GameFi and metaverse projects once their iToken was approved/launched on Harmony. The first integration is BAYC with DefiKingdoms. There are 7 mapped iTokens living on Harmony already, including BAYC, MAYC, BAKC, Azuki, Doodles, Meebits, Clone-X.
Why iTokens?
Many NFT projects were launched on the Ethereum network nowadays, especially for PFP projects. When Twitter blue supported verified NFT as the profile pictures, the token holders are also looking to use the same profile across multiple other applications and blockchain ecosystems. That’s why we would like to provide a cross-chain identity to NFT token holders on the Ethereum network to use their PFP as their identities in the Harmony ecosystem. Even though Harmony provides a cross-chain NFT bridge to bring in NFT tokens from Ethereum to Harmony, NFT holders may not be comfortable bridging their tokens due to security concerns, or may lose potential airdrop opportunities, and so on. There are many NFT theft that happened and people are concerned about the hacking of bridges as well. So Harmony initiated the iToken standard to map the NFT ownership without bridging the NFT tokens.
iToken is just a read-only mapping. The original NFT is still residing in the token holder’s wallet. There is no authorization or any message signing to risk the NFT. Token holders can still use the same account across Ethereum and Harmony w/o moving the assets.
To the Harmony ecosystem, it provides opportunities to expand the user base and outreach to NFT players on the Ethereum blockchain. For example, DefiKingdoms already support players using their BAYC PFP as the profile pictures. Metaverse projects on Harmony may also utilize the iToken to increase the diversity of the players and avatars.
Since Harmony provides lower gas fee and fast finality, GameFi projects can naturally be developed on Harmony blockchain. For NFT projects launched on Ethereum, they can use iToken to map the NFT and launch games on Harmony to increase the utility and engagement.
How does it work?
Any NFT project can apply to launch an iToken on Harmony. The application process is permissionless and the team will do some basic verification. A corresponding smart contract will be deployed on the Harmony blockchain shard 0. A trusted relayer will initiate the NFT ownership map and will continuously monitor the smart contract on Ethereum and relay the ownership map from Ethereum to Harmony. NFT token holders do not need to do anything. If you use the same account across Ethereum and Harmony by switching network in MetaMask, you can use iToken as your identity in all the supported dApps on Harmony.
GitHub Repo
- iToken smart contract, https://github.com/harmony-one/contract-libs/tree/main/contracts
- relayer, https://github.com/harmony-one/identity-token-relayer
Usage and Roadmap
We have created an application form to create iToken on Harmony blockchain to map the NFT projects launched on Ethereum. It is a permissionless process. Any project can apply for the iToken. Applicants just need to provide the required information, and the team will verify, and process the application within a week. The application form is here.
All the launched iToken will be shown in the horizon bridge (https://bridge.harmony.one/itokens). 7 blue chip NFTs have been mapped to iToken on Harmony already.
On the future roadmap, we will support ERC1155 token standard, and make it fully trustless and permissionless after the launch of the permissionless Ethereum bridge to completely remove the application process.
Any NFT/GameFi/Metaverse projects on Harmony are encouraged to integrate the iToken with their ecosystem to expand the user base.
FAQ
- How can I use iToken in my dApp?
You may use the deployed iToken just like a standard HRC721 smart contract. You may retrieve the URI from the token contract and use the resources in your dApp.
Developers can check the iToken smart contract in the repo, or check the verified contract source in the explorer.
- Which applications can use iToken?
Any Game, Social, or Metaverse projects can use iToken to increase the user base of the ecosystem. Remember iToken represents the identity of the ownership of the corresponding NFTs.
- Which applications shouldn’t use the iToken?
iToken is mainly used for identity. It is a mapping, but not collateralized. Any financial or DeFi project shouldn’t use iToken to represent the underlying assets. NFT fractionaliztion or lending protocols shouldn’t use iToken as it is not transferrable or liquidable.
