Analysis of the Impact and Challenges of ERC-6551 “NFT Binding Account”

Impact and Challenges of "NFT Binding Account"

In the past, NFTs were static and stateless, lacking the ability to develop their own identity. The ERC-6551 proposal aims to strengthen NFTs by transforming them into token-bound accounts. Messari researcher Seth Bloomberg has delved into the potential impact of this proposal.

ERC-6551 is a standard that provides backward compatibility for developers, allowing them to deploy smart contract accounts or token-bound accounts (TBA) to NFTs. Through TBA, ownership is transferred from the account where the NFT is located to the NFT itself.

The impact of ERC-6551 includes: smart contract accounts – NFTs can own assets and use more features; NFT market space – buying and selling will become more complex; virtual humans & AI agents – combining AI with Web3 can create an engaging experience.

ERC-6551 transfers the accumulated value of on-chain interactions from the account that signs transactions for the NFT to the NFT itself. When combined with NFT and smart contract accounts, digital entities essentially obtain a bank account. For example, an entity may have materials from Lens Protocol and generate revenue by having their followers collect their content.