On May 7th, ERC-6551 launched, bringing new capabilities to NFTs. The new token standard gives NFTs the ability to operate as their own smart contract accounts. But what does this mean? These NFTs can do things like collect other NFTs, store ERC-20 tokens, log into web3 apps, vote in DAOs, collect POAPs, and buy and sell tokens. These are token-bound accounts. Now that more users are utilizing NFTs as their onchain identities, these functionalities will allow them to do more directly from their NFTs. Now ERC-721 tokens have the capabilities of an Ethereum account but remain compatible with existing ERC-721 contracts. This is an especially interesting use case for gaming, because it will allow users to store in-game items, skins, and more within their game avatar NFT, and bind them together into one “folder,” so to speak. They could also sell or trade the NFT holding all of the in-game items. Many are saying that this is a historic milestone in the history of NFTs, and we’re looking forward to seeing how they evolve!

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