Decoding the next big evolution of NFTs: Token-Bound Accounts (TBA)

NFTs: Token-Bound Accounts (TBA) and their next evolution.

Token-Bound Account (TBA) is the next major evolution of NFT, which supports two groundbreaking features: asset ownership and social identity. The official Thirdweb article provides an in-depth analysis of TBA’s principles, use cases, and establishment methods.

Token Bound Account (TBA) is enabled by ERC-6551, a new standard that creates a smart contract wallet for each ERC-721 NFT. TBA is an “interface and registry of smart contract accounts for ERC-721 tokens” – linking smart contract accounts to the NFTs that own them. The implementation contract specifies the logic of the TBA for a specific ERC-721 token. Supported by ERC-4337, smart accounts are customizable and can be used to store assets and conduct transactions. Token Bound Account also maintains an immutable registry of all on-chain activities performed by the account. This turns each NFT into a wallet with a unified source of ownership, trade, and utility.

One use case is in gaming, where a user claims an ERC721 NFT (such as an avatar) at the start of the game, which is a TBA containing all assets collected throughout the game. Your game progress and history can be linked to the NFT instead of a wallet. TBA also enhances the compossibility of NFTs – making them more customizable. NFTs can “hold” inventories of collectibles and wearable items, which can be equipped without gas by updating the token’s metadata.

How to create your own TBA? To start, deploy: 1) an NFT Drop (where NFTs will be owned by this account); and 2) an ERC-4337 and ERC-6551 compatible smart contract wallet. Deploy the NFT Drop contract on any EVM chain, guide: Deploy your TBA implementation: