TL; DR
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ERC-404 takes over functions from ERC-20 and ERC-721 and combines them.
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ERC-404 aims to combine two features together, allowing people to buy fractional shares of an NFT.
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This opens up a whole new range of use cases, for example NFT real estate – buy a property as an NFT → let buyers buy a fractional share of it, from $1-$1 million+
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Pandorathe first (so-called) ERC-404 token, went from $250 to (get this) $32,000 in the first 10 days of February!
Full story
When you walk into McDonald’s – what do you order?
Probably depends on your mood and appetite, right? But whichever option you choose – where you still dine Maccas.
The same goes for ‘ERC standards’ on Ethereum.
Each standard is like an option in a menu: ERC-20 issues plain old Ethereum tokens, while the ERC-721 standard is responsible for creating/issuing NFTs.
But whichever option you choose – you still buy crypto assets on the Ethereum network.
Well, recently someone added a new menu item to the ETH ecosystem called ERC-404 – and it’s Ethereum’s version of ‘a Quarter Pounder combined with a Big Mac.’
ERC-404 takes over functions from ERC-20 and ERC-721 and combines them.
The result? Fractionated NFTs.
What does that mean? You know how, when you buy Ethereum (an ERC-20 token), you don’t whole sign? You can buy a fraction if you want, for example 0.10 ETH (~$250). But if you buy an NFT, for example a Crypto punk — you buy the whole thing (~$150,000) or nothing at all.
ERC-404 aims to combine these features so that people can buy fractional shares of an NFT.
(Opening up a whole new range of use cases, e.g. NFT real estate – buying a property as an NFT → lets buyers buy a fractional share of it, from $1-$1 million+)
ERC-404 is not even an official standard yet and the market is already working on it.
Pandorathe first (so-called) ERC-404 token, went from $250 to (get this) $32,000 in the first 10 days of February!
(It took Bitcoin seven years to cover the same distance in coin price – although Pandora has a total supply of 8,000 tokens, compared to BTC’s 21 million).
Still, that’s WILD.
