Ethereum NFT Update: What is ERC-6551?

With the introduction of the Bitcoin Ordinals, NFTs on the Bitcoin blockchain have made a triumphant advance in recent weeks. As a result, heated discussions took place as to whether NFTs on the Bitcoin blockchain could make NFT functions on Ethereum and other networks obsolete in the long term. Now, with the ERC-6551 standard, Ethereum has a feature that could revolutionize the NFT world. 


Are Ethereum NFTs at risk?

In recent months, the Bitcoin Ordinals have led to NFTs being possible on the Bitcoin blockchain. Because the ordinals inscriptions allow larger amounts of data to be written to the BTC blockchain. This makes Bitcoin NFTs widely possible. 

Ethereum has been the network on which by far the most NFTs are created. Bitcoin NFTs put Ethereum under pressure because Bitcoin is considered the most secure network. So far, Ethereum has impressed with its extensive functions. If Bitcoin now introduces features like NFTs, Ethereum could become obsolete in many areas. 

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What is ERC-6551 standard?

The ERC-6551 standard is a new standard for NFTs on the Ethereum Blockchain. In this standard, NFTs can execute their own smart contracts. This means that an NFT on Ethereum can receive its own tokens, hold its own wallet address and conduct transactions. 

These are then called “Token Bound Accounts”. The new ERC-6551 standard is compatible with the old NFT standards on Ethereum. ERC-6551 also support the Ethereum Virtual Machine (EVM).

In the ERC-6551 standard, NFT wallets on Ethereum can have the same functions as normal Ethereum wallets. With an NFT, other NFTs can also be stored and ERC-20 tokens can be exchanged. 

Is Ethereum Fighting Back Against Bitcoin?

The introduction of the ERC-6551 standard comes at the right time. The Bitcoin NFTs have sparked discussions as to whether the BTC blockchain could soon take over all the functions of Ethereum while offering better security and decentralization.

Ethereum can only counter this with better and more diverse functionality. The functions of the ERC-6551 standard look impressive at first glance and the compatibility with the old standards makes it very easy for users to adapt quickly. The ERC-6551 standard could also be the beginning of a new NFT hype that will spread over the next 2 years. 

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