New Ethereum Token DN404 Rivals ERC-404 in Fractional NFTs
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 ERC-404 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 “ERC-404 tokens don’t really adhere to either ERC-20 or ERC-721 standards. It’s close to ERC-721, 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.
Dedicated Web3 enthusiast with distinctive insights into creative blockchain-based developments.
Credit: Source link
