Rikkei Finance

<p>The NFT space is experiencing a shift, but it&#39;s not the typical change that blockchain enthusiasts have grown accustomed to. Instead of relying on popular trends like PFPs, open editions, and memecoins to drive the industry ahead, innovation is now taking place at the token level.</p><p>While advancements and expansions are inherent in the development of Web3 technologies, they often go unnoticed until they are ready to make a significant impact. However, a range of new token standards is poised to change this dynamic. Here are the noteworthy ones you should be familiar with.</p><h2 id="header-0"><strong>Understanding NFT standards</strong></h2><p>NFT standards are the underlying principles that dictate how NFTs are built on specific blockchain platforms. Ethereum paved the way as the first blockchain protocol to introduce and launch NFTs, solidifying its position as the leading platform for NFTs.</p><p>While Ethereum continues to dominate the NFT space, competitors like Flow and Tezos are gaining momentum and challenging Ethereum&#39;s supremacy. Experts anticipate that these platforms will soon surpass Ethereum in NFT adoption due to factors such as transaction fees.</p><p>Transaction fees are inherent to blockchain transactions, including cryptocurrency trading and NFT purchases. Ethereum transactions utilize &#34;gas,&#34; which is tied to the market price of Ethereum. As the price of Ethereum has soared over time, transaction fees on the Ethereum platform have become increasingly expensive, posing challenges for creators, buyers, and investors.</p><p>Despite the rising competition and transaction fee concerns, Ethereum remains a dominant force in NFT creation and sales. Now, let&#39;s explore the leading NFT standards that are currently driving the market forward.</p><h2 id="header-1"><strong>ERC-6551</strong></h2><p>Introduced in February 2023, ERC-6551 is an innovative token standard that introduces &#34;token-bound accounts&#34; for every ERC-721 token. These accounts enable ERC-721 tokens, which are widely used in the NFT space, to possess assets and engage with applications without necessitating modifications to current ERC-721 smart contracts or infrastructure.</p><p>Similar to how Coral&#39;s Backpack wallet operates, ERC-6551 enables an NFT to act like an app, creating an account specifically for the NFT itself. This account can collect tokens, earn rewards, execute processes, and communicate with other accounts, all directly from the NFT, eliminating the dependency on the wallet holding it.</p><h2 id="header-2"><strong>ERC-721C</strong></h2><p>ERC-721C, released in its final version in May 2023, introduces a groundbreaking token standard that enforces on-chain royalties. Unlike the commonly used ERC-721 and ERC1155 standards, ERC-721C enables creators to programmatically enforce royalties, preventing zero-fee exchanges from platforming their works. This standard, developed by Limit Break, empowers creators to set new rules for their royalties on-chain, allowing them to dictate where their NFTs can be sold and filter interactions to specific contracts and applications.</p><h2 id="header-3"><strong>BRC-721E</strong></h2><p>BRC-721E, unveiled in May 2023, is a pioneering standard that facilitates the conversion of Ethereum-based NFTs into Bitcoin NFTs. Developed in collaboration between Ordinals Market and Bitcoin Miladys, this protocol simplifies the migration of individual ERC-721 NFTs to Bitcoin without the need for developers to encode an entire collection in advance. It enables traders to seamlessly transform their Ethereum NFTs into the Bitcoin ecosystem.</p><p>BRC-721E introduces a unique functionality where data is encoded into a burn transaction, allowing users to create BRC-721E tokens by destroying the original NFT and receiving a new Ordinals Inscription. This process also supports airdrops, and collections that utilize BRC-721E to bridge from Ethereum to Bitcoin will be automatically listed.</p><h2 id="header-4"><strong>BRC-20</strong></h2><p>BRC-20, created by an anonymous developer named Domo in March 2023, is a token standard that resembles ERC-20 but specifically designed to enhance Bitcoin&#39;s NFT capabilities. It enables the minting and trading of fungible tokens through the Ordinals protocol on the Bitcoin blockchain. Unlike other popular NFT standards, BRC-20 does not rely on smart contracts. Instead, it allows users to store a script file on Bitcoin and utilize Ordinals to write JSON data to Satoshi (sats), the atomic unit of Bitcoin.</p><h2 id="header-5"><strong>SRC-20</strong></h2><p>SRC-20, also known as STAMPS (Secure Tradeable Art Maintained Securely), is a recently developed standard on Bitcoin by Stampchain in May 2023. Built on the foundation of BRC-20, SRC-20 diverges in how transactions are stored. While BRC-20 transactions are stored in witness data, SRC-20 transactions are stored in spendable data, offering enhanced security and tradeability for digital assets.</p><p>BRC-20 tokens and associated data can theoretically be detached from Bitcoin, allowing for potential transferability. In contrast, SRC-20 offers an extra level of decentralization, ensuring that this particular standard maintains its data within the Bitcoin network. The inspiration for STAMPS and its utilization of the Counterparty minting protocol stems from the historic and coveted Rare Pepes collection, which has played a notable role in the evolution of the NFT space.</p><p>To conclude, these notable NFT standards represent the ongoing evolution of the NFT space and provide exciting possibilities for creators, collectors, and investors as the market continues to evolve.</p><p><em>Disclaimer: The information herein is for reference purposes only and should not be considered financial, investment, or trading advice. Please conduct your own research and due diligence before making investment decisions. You understand that you are using the Information provided at your own risk.</em></p>

New token standards in 2023

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