On a historic day for the entire cryptocurrency ecosystem, an improvement proposal for Ethereum, known as EIP (Ethereum Improvement Proposal) presented by the USM.World ecosystem was approved by the Ethereum community/foundation.
The proposal calls for implementing improvements to EIP-721 by adding a secure locking mechanism for non-fungible tokens (NFTs). Through the proposal, owners of NFTs can approve a smart contract that blocks the NFT, preventing its transfer to other wallets.
When implemented, the proposal allows NFTs to participate in Dapps and DeFi protocols, as well as other smart contracts, without NFTs having to be transferred to another wallet. The NFTs remain in the owner’s wallet while allowing the owner to have exposure to other smart contracts.
USM.world Helps Write a New Story for NFTs With EIP-721
Through the approval obtained by USM.World ($RACA) with the Ethereum community, the history of NFTs can be rewritten with the implementation of EIP-721 since after the activation of the feature, a new range of opportunities is enabled for the entire cryptocurrency industry, and EIP-721-enabled NFTs have exploded in demand.
Currently, the EIP-721 standard is predominant among Blue Chip NFTs projects. Still, holders of these NFTSs, to participate in other protocols, such as DeFi, using their NFTs, need to transfer their ownership to the projects’ contracts, which represents inconvenience and Risks to Owners.
In this way, NFTs can be lost or stolen due to bugs and vulnerabilities in the contracts of these protocols. Also, by transferring NFTs to another address, users can no longer use these assets as verified profile pictures in Web 2 protocols such as Twitter and Instagram.
Another drawback is that, by transferring NFTs to another wallet, owners are no longer eligible for airdrops and other benefits tied to blue chip NFTs owned.
However, with USM. World’s ($RACA) proposal approved by the Ethereum community, this story begins to change, and a new world of opportunities is born for NFTs – enabling these non-fungible tokens for Web 3, for DeFi, and the Metaverse.
In this way, with the improvement on Ethereum created by USM.World ($RACA) and approved by the Ethereum community, USM.World ($RACA), instead of being transferred to a smart contract, an NFT remains in self-custody but is blocked. Therefore, as long as an NFT is blocked, its transfer is prohibited. Other properties remain unchanged. In possession of their NFTs, owners can receive or claim airdrops.
“The proposed standard allows the underlying NFT assets to be managed securely and conveniently, extending the EIP-721 standard to support common NFTFi use cases natively, including blocking, staking, borrowing, and crowdfunding. We believe that the proposed standard will encourage NFT owners to participate more actively in NFTFi projects and improve the livelihoods of the entire NFT ecosystem.”
The Proposal May Be Implemented After the Merge
The enhancement was developed by USM.World ($RACA) creates a new type of NFT, called “Bound NFT,” which is identical to the metadata of the blocked NFT. However, it can be transferred. However, a bound NFT only exists during the NFT lock period and will be destroyed after the NFT is unlocked.
BoundNFT can be used for lending as a staking credential for the contract. The credential can be blocked in the contract and the user. In NFT leasing, boundNFT can be leased to users because boundNFT is essentially equivalent to NFT. This consensus, if accepted by all projects, boundNFT will bring more creativity to NFT.
Now, after being approved by the Ethereum Community, the proposal should enter the development and implementation roadmap of the Ethereum Core Team, which is currently committed to the activation, on the mainnet, of The Merge, the most significant update in the history of Ethereum and which, among others, will change its consensus mechanism, currently from proof-of-work (PoW) to proof-of-stake (PoS).
Jeff Watney, USM visionary, said:
“This is a historic achievement for USM.World ($RACA) and for the entire crypto industry, as our proposed improvement, when implemented on Ethereum, will create a new industry of opportunity for NFTs and activate their full potential in Defi protocols. , Web3 and Metaverse. We are sure that this will be followed and implemented throughout the cryptocurrency industry. We are a tech-heavy company helping to transform the world, and this is further proof of our commitment.”
To learn more about the proposal, visit the GitHub link
USM.World, join this new revolution.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: promesaartstudio/123RF // Image Effects by Colorcinch