NFTs

New Ethereum Token DN404 Rivals ERC-404 in Fractional NFTs

1 Mins read

Barely a week after ERC-404 emerged on the blockchain scene — introducing a new phase of fractional NFT ownership — a rival token protocol dubbed ‘DN404’ (Divisible NFT) is stepping into the spotlight.

Yesterday, on February 12, the token’s enigmatic programmer known as ‘cygaar’ — alongside others — unveiled DN404, positioning it as a formidable adversary to its precursor by similarly fusing elements of ERC-20 and ERC-721 tokens.

Advanced technology synchronizes ERC-20 token transactions with NFT states in an ERC-721 contract, automating NFT creation or deletion based on token balances through direct minting and burning.

As per cygaar, the ultimate aim of this initiative is to “create a token standard that could act as an NFT with native fractionalization built in.” Moreover, he states it’s a “unique unlock of ERC404 that allows users to trade portions of NFTs without any middle man.”

Source: X (cygaar)

Security Concerns Casting Doubts on ERC-404

In response, an ERC-404 contributor — ‘ctrl’ — confirmed that a refined version of the standard is under development and will undergo an audit to verify its strengthened integration and enhanced protection measures.

Despite DN404’s novel structure, cygaar raised an additional flag of caution to potential adopters, announcing on X that “ERC404 tokens don’t really adhere to either ERC20 or ERC721 standards. It’s close to ERC721, but the balance function isn’t the same due to fractions. 

Additionally, cygaar claims that the “404 number is very arbitrary. It doesn’t follow the standard EIP numbering process.” 

The advent of DN404 alongside the security debates concerning ERC-404 may profoundly influence the dynamics of NFT trading and the evolution of Ethereum’s blockchain standards.



Source link

Related posts
NFTs

Our Most Read Stories This Week: BTC Breaks 60k, UNI Fee Switch, Airdrops Come to Bitcoin, Aptos Interview

1 Mins read
The Defiant’s most read stories for the week of Feb. 26. Source link
NFTs

Institutional Investors Are Farming Liquid Restaking Tokens For Yield

3 Mins read
MEV Capital says liquid staking offers market-neutral ETH yields. Liquid restaking is not just for degens. Institutional investors are also getting in…
NFTs

Infamous Three Arrows Founders Return to Peddle ‘Supercycle’ Narrative

1 Mins read
Kyle Davies and Su Zhu are back on Twitter, posting about the current bull run. The two disgraced founders of Singapore-based hedge…

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *