EIP 6551 Token Bound Accounts
After account abstraction has been in talks in crypto for almost a year now, I thought about another solution that might help in easing the UX. It’s Token Bound Accounts.
Let’s dive into this new topic and try to explore all the features it has to offer.
The what?
ERC-6551, a new standard for non-fungible tokens (NFTs), is reshaping the NFT landscape and enhancing the NFT holder experience. At the heart of ERC-6551 lies the concept of Token Bound Accounts (TBAs).
These innovative wallets are integrated within NFTs themselves, enabling each NFT to possess its own unique wallet address. In other words, the NFT acts as a self-contained wallet, revolutionizing the way assets are stored and managed within the NFT ecosystem.
Advantages
Enhanced Personalization and Interactions: Unlike traditional NFTs that are static JPEG images with speculative value, NFTs with TBAs gain hyper-personalization and new utilities. These added features make the NFTs more valuable and engaging for users, as they store various assets and retain a history of interactions.
Composability: TBAs facilitate bundling related assets (NFTs, tokens, traits, etc.) into a single profile, simplifying asset management and transfer across different platforms. When an NFT with a TBA is sold or transferred, all associated assets are seamlessly transferred along with it, providing a more streamlined user experience.
Dependency: Historically, NFTs have been unable to interact autonomously with other on-chain assets or platforms, limiting their functionality. TBAs eliminate this restriction, transforming NFTs from mere certificates of ownership to valuable and useful assets capable of seamless interactions within the broader ecosystem.
Fully On-chain Identities: In contrast to conventional wallets representing a user’s digital identity, TBAs empower each NFT to possess its own identity. This allows NFTs to interact independently with decentralized applications (dApps), eliminating the need to rely on the wallet holding the NFT.
Potential Issues
So what do you think can be a UX problem according to the developer’s perspective?
The existing wallets will have to implement this feature and the UX of handling NFT accounts would be a new problem to tackle.
More wallets would emerge leading to more options and thus the existing dApps would need to add support to this wallet.
Defi with TBAs would need to be secure and devs would have to make sure that it is super secure.
Conclusion
These advancements enable more sophisticated use cases, offer greater flexibility, and improve user experience. Moreover, with the integration of TBAs and the ongoing development of standards like EIP 4337 for wallets, the path towards mass adoption of NFTs becomes clearer, promising an exciting future for the NFT ecosystem.
No day in crypto tech is boring :)
