A group of cryptocurrency developers has released an alternative implementation of the experimental ERC-404 token standard to achieve the same result in a more efficient way.
The ERC-404 token standard was launched on February 2nd by the Pandora team with the goal of combining ERC-20 tokens and NFTs. The broad idea was to provide unique fractionalization of NFTs by allowing them to be separated and recombined at will, but this could have some interesting side effects, including potentially different NFTs being returned.
However, tokens have had a significant impact on Ethereum transaction fees, increasing fees overall. In response, this group of competing developers thought they could create a more efficient implementation with less impact.
DN-404 Introduction
On February 12, the developers released a version called DN-404. calculation Transaction fee impact is reduced by 20%.
“The premise of ERC-404 was to create a single contract that could act as both a fungible and non-fungible token. But this is not possible without introducing exploits and breaking standards,” said one developer using a pseudonym. Known as cygaar. “Instead, our approach uses two contracts: the “mirror” ER-C721 and the “base” ERC-20.”
Problems can be reduced by splitting the two elements into separate, more standard contracts. “As a result, everything returns to the way it was. “Both ERC-721 and ERC-20 contracts exist and both function as standalone products, but run internally on a shared 404 rail.” Added exitAnother pseudonymous developer behind the project.
The developers noted that the code has not been audited, so there is some risk involved. Unlike the ERC-404 initiative, they did not introduce a token-NFT hybrid using this code.
“I want to make it clear. Although I had a ton of fun making this, I still see 404 as more of a gimmick than anything else. But the space continued to show a desire to be used, so we decided it was worthwhile to create an implementation that could be used efficiently and safely,” Quit said.
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