crypto-economy.com
TL;DR
- ERC-404: New standard combines ERC-20 and ERC-721 to split ownership of NFTs.
- Debate: Enthusiasm and concern about their lack of adherence to standards and experimental status.
- Progress and challenges: Promising tests in gas cost reduction, but official adoption is still pending.
In the ever-dynamic ecosystem of blockchain technology, the recent introduction of the ERC-404 token standard has sparked heated debate among Ethereum enthusiasts.
This innovative standard , conceived by the pseudonymous developers behind the Pandora project, merges features of the popular ERC-20 and ERC-721 protocols.
Its most striking proposal lies in the ability to split ownership of non-fungible tokens (NFTs), allowing multiple wallet holders to share ownership of a single NFT.
ERC-404’s potential to revolutionize tokenization has generated both excitement and skepticism within the community.
Some experts consider it a “game changer”, highlighting its ability to improve liquidity in the highly illiquid NFT market.
This is supported by the initial success of Pandora’s ERC-404 tokens, which have seen impressive returns and significant market capitalization since their launch.
Many of you guys have been asking about optimization for ERC404 and how we plan on scaling and improving on the standard, so we thought we'd share some preliminary test results!
The following is still in development, so the numbers on release may look a little bit different -… pic.twitter.com/dfr2A0CrUr
— Pandora (@Pandora_ERC404) February 13, 2024
However, not everyone is convinced of the potential of ERC-404
Critical voices, such as Miguel Prada of Diva Staking, express concerns about ERC-404’s lack of adherence to Ethereum standard procedures, which could hinder its integration and adoption in the ecosystem.
Similarly, Ryan Lee of Bitget Research points to its experimental status and lack of formal inclusion in the Ethereum Foundation standards as points of concern.
Despite the doubts raised, proponents such as Haven1’s Akash Mahendra see ERC-404 as a potential catalyst for the tokenization of real-world assets on Ethereum.
Mahendra highlights the standard’s ability to provide users exposure to the functionalities of both ERC-20 and ERC-721 in a single token, opening up new investment and utility opportunities.
In an effort to address some of the concerns raised, the Pandora team has shared preliminary test results on the new version 2.1.
These tests show significant improvements in reducing gas costs associated with key operations such as minting and transferring ERC-404 tokens.
As the debate continues and the ERC-404 standard moves towards a possible production implementation, the Ethereum community is closely monitoring its evolution.
In the meantime, enthusiasts and skeptics alike remain attentive to upcoming developments and the Ethereum Foundation’s final decision on this innovative token standard.