Will ERC 6551 transform Ethereum metaverses with NFT-owned wallets?

The ERC 6551 token standard, proposed for NFTs, has gained attention in the crypto industry for its potential to revolutionize the NFT and metaverse space by equipping digital assets with their own wallets.

In a recent episode of the Unchained Podcast hosted by Laura Shin, Benny Giang and Jayden Windle, two of the authors behind the Ethereum Improvement Proposal (EIP) for ERC 6551, discussed how this new standard would enable NFTs to own other tokens, effectively giving them their own wallets.

The proposed token standard, introduced in February, aims to create a system where each ERC-721 token (non-fungible token) is assigned a smart contract account. This allows the tokens to interact with applications and own assets without requiring modifications to existing ERC-721 smart contracts or infrastructure.

The system consists of two main components: a permissionless registry for deploying token-bound accounts and a standard implementation interface.

The registry deploys a unique smart contract account for each ERC-721 token, enabling the token to interact with the blockchain, maintain a transaction history, and own on-chain assets. Token owners have control over their token-bound accounts, allowing them to initiate on-chain actions on behalf of their tokens.

The proposal aims for maximum backward compatibility with existing non-fungible token contracts and utilizes EIP-155 chain IDs to uniquely identify ERC-721 tokens, allowing for optional support of multi-chain token-bound accounts.

During the initial developer discussion, security implications were a focal point, including concerns about duplicating registries and the need for trust verification. Suggestions were made to establish a registry for broad account implementations and to make the proposal's registry canonical due to its permissionless nature.

The potential implications of the proposal in reducing airdrop costs were highlighted, as well as discussions on the security concerns of adding metadata to the NFT registry.

In more recent discussions among Ethereum developers, concerns were raised about the proposal still being in the 'Draft' status, indicating the potential for significant changes. Additionally, discussions revolved around finalizing function naming and the potential impacts on EIP implementers.

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