Crypto's Next Wave, Beyond DeFi, It's All About New Applications

Crypto's Next Wave, Beyond DeFi, It's All About New Applications

Apr 03 Tech Standard


Remember the bear market when everyone questioned the entire existence of blockchain? Then DeFi (decentralized finance) exploded, proving its worth. Now, the question of crypto's value is back, but this time it's not about disappointment – it's about untapped potential.

The answer won't come from flashy new blockchains or faster transactions. It lies in applications built on innovative standards and protocols, a departure from the limitations of the old ones. We've seen enough from ERC-20 and its ilk. The future belongs to ERC-6551, ERC-5169, and ERC-404.

ERC-6551, Breathing Life into Digital Entities

Imagine NFTs that own assets and interact with applications. That's the power of ERC-6551. It creates "token-bound accounts" for NFTs, opening a vast space for innovation. Let's explore three areas: gaming, AI, and digital IDs.

In gaming, ERC-6551 could merge real players and NPCs. Imagine a game where your character keeps earning even when you're offline, acting as an NPC mercenary for other players. This "non-human account entity" concept could revolutionize how games work.

What about AI? As AI evolves, could they exist as equals to humans? ERC-6551 could provide them with accounts and asset management capabilities on the blockchain.

Finally, this standard could be crucial for digital avatars, potentially allowing them to persist and manage their own assets.

ERC-5169, Bridging the On-Chain and Off-Chain Divide

This standard allows tokens to carry executable scripts. Think of applications where some data stays on the blockchain (for security) while others reside off-chain (for efficiency). It offers a sweet spot between complete decentralization and strategic use of centralized systems.

Imagine a smart fridge controlled by a smart contract – the internet of things coming to life! ERC-5169 expands blockchain's reach by allowing tokens to interact with various Web2 and Web3 services.

ERC-404, Redefining Scarcity and Value

This experimental standard combines fungible and non-fungible tokens. It aims to move away from the "blind box" model of NFTs, where value is purely based on artificial scarcity. Instead, ERC-404 focuses on creating products with inherent value and sustainable scarcity, like fine wine.

Think of it as a standardized production machine for digital goods. The data fed into the system (like block height and randomness) determines the final product, similar to generative art. This removes the need for manual intervention and allows the community to decide on value.

The Power of New Standards

These new standards introduce fresh possibilities. ERC-6551 creates new demands, ERC-5169 offers solutions to real-world problems, and ERC-404 opens a whole new design space. By enabling entirely new applications, they have the potential to break the current deadlock in the blockchain space. The future of crypto is bright, and it's all about building on these innovative foundations.


Crafting cinematic stories through the lens of my phone, I am a blogger and content writer who expresses the essence of my blogs through words

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