NFT

New Ethereum Token DN404 Rivals ERC-404 in Fractional NFTs

Barely per week after ERC-404 emerged on the blockchain scene — introducing a brand new part of fractional NFT possession — a rival token protocol dubbed ‘DN404’ (Divisible NFT) is entering into the highlight.

Yesterday, on February 12, the token’s enigmatic programmer referred to as ‘cygaar’ — alongside others — unveiled DN404, positioning it as a formidable adversary to its precursor by equally fusing components of ERC-20 and ERC-721 tokens.

Superior expertise synchronizes ERC-20 token transactions with NFT states in an ERC-721 contract, automating NFT creation or deletion based mostly on token balances by direct minting and burning.

As per cygaar, the final word purpose of this initiative is to “create a token standard that could act as an NFT with native fractionalization built in.” Furthermore, he states it’s a “unique unlock of ERC-404 that allows users to trade portions of NFTs without any middle man.”

Supply: X (cygaar)

Safety Issues Casting Doubts on ERC-404

In response, an ERC-404 contributor — ‘ctrl’ — confirmed {that a} refined model of the usual is below improvement and can bear an audit to confirm its strengthened integration and enhanced safety measures.

Regardless of DN404’s novel construction, cygaar raised an extra flag of warning 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.” 

Moreover, cygaar claims that the “404 number is very arbitrary. It doesn’t follow the standard EIP numbering process.” 

The arrival of DN404 alongside the safety debates regarding ERC-404 could profoundly affect the dynamics of NFT buying and selling and the evolution of Ethereum’s blockchain requirements.

DailyBlockchain.News Admin

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