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The New ERC-404 Token? Explain it to Me Like I’m a Five Year-Old

5M ago
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What Is ERC-404 Token?
The New ERC-404 Token Standard Launches

YEREVAN (CoinChapter.com) — The ERC-404 token standard is one of the latest innovations in the blockchain space, allowing users to own a portion of an NFT. It represents a unique blend of ERC-20 and ERC-721 technology, used to create nonfungible tokens (NFTs), enabling the fractional ownership of digital collectibles.

When ownership falls below a complete NFT value, represented in tokens, the user holds merely a fractional token instead. However, after accumulating sufficient fractions to constitute a whole NFT, the user will again get an NFT in their collection. However, there is no guarantee of getting the same NFT back and it may be a different one from the original.

The idea, although new, has already caught the interest of investors, with some tokens registering significant gains. The PANDORA token, for example, which became the first ERC-404 token, recently reached an all-time high of $32,800.

The ERC-404 token standard is one of the latest innovations in the blockchain space, that has come to revolutionize Nonfungible tokens (NFTs)
PANDORA price chart. Source: CoinStats

Other ERC-404 tokens that have become popular and surged in price include 404BLOCKS, ANON, EthereRock404, and DEFROGS, among others.

ERC-404? I Still Don’t Get It

Essentially, ERC-404 is the ultimate rule book for a very special kind of toy box in the Ethereum (ETH) blockchain’s digital playground. This isn’t your average toy box; it’s designed to hold digital toys, which we call NFTs. However, the most unique feature of the ERC-404 standard is shared ownership. Instead of only you having ownership of a particular toy, you and your friends can each own a stake in one toy. This makes the game, the space, fun for everyone and also helps reduce the cost of the NFT for each person. 

The magic of ERC-404 is that it helps everyone know which digital toys in the game belong to whom. This ensures that you can share and play with them in many different games without any mix-ups.

The ERC-404 token standard is one of the latest innovations in the blockchain space, that has come to revolutionize Nonfungible tokens (NFTs)
Investors believe the ERC-404 standard will be a gamechanger for NFTs

You can even allow your friends to play with your toy. With ERC-404, it’s like you’re saying, “You can play with my toy in your game, but it still stays in my toy box and is mine at the end of the day.” 

Here is another way of looking at it. Imagine you have an old toy that you no longer want. Imagine taking it to the park and allowing other kids to buy part ownership in it. This helps you raise money for a new toy, while also sharing the toy with others in the meantime. 

For those just getting to know NFTs, this feature is particularly good for business, selling real estate, and even conducting fundraising activities. Love gaming? The ERC-404 standard will help partially own in-game items and features, making the entire experience more inclusive. The new ERC-404 token’s technology will undoubtedly prove valuable for a myriad of industries and use cases.

To make sure there are no fights in the sandbox, the ERC-404 token still exists on the blockchain to ensure the entire ownership process is smooth, seamless and secure. 

The post The New ERC-404 Token? Explain it to Me Like I’m a Five Year-Old appeared first on CoinChapter.

5M ago
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