Exploring the complex landscape of semi-fungible tokens

Source: Bing Ventures, Medium

Every innovation of Web3 protocol standards is not only a technological leap, but also a catalyst for the birth of new models and new asset forms for the entire digital economy. Innovation in standards, especially in the representation of assets, interoperability, and user interaction, provides developers with the opportunity to build more complex, responsive, and user-friendly applications. With the development of blockchain technology, we have witnessed the evolution from single-function tokens to multi-function smart contract platforms, and each step is accompanied by the introduction of new protocol standards and the improvement of old standards.

This Bing Ventures research article introduces new standards in the field of semi-fungible tokens (such as ERC-404, TinySPL, and Asteroids) and related representative projects, and evaluates these standards.

We believe that the innovation of semi-fungible tokens should consider four key issues, and their performance in actual applications and market acceptance should also be considered in the specific evaluation.

1. Enhanced asset interoperability: In a multi-chain and cross-chain environment, the free flow and interchange of assets is an important direction for the development of blockchain technology. New protocol standards should support seamless asset transfer and smart contract interoperability between different blockchain platforms.

2. Binding of assets and identities: With the popularization of digital identities, combining user identities with asset ownership to provide more secure and personalized services will become the focus of innovation. This not only improves security, but also may open up new models of identity-based customized services and permission management.

3. Scalability and cost efficiency: As blockchain applications expand, protocols must be optimized to support higher transaction volumes and lower transaction costs. For example, through layered solutions or state channel technology, the load on the main chain can be reduced, and the overall efficiency and responsiveness of the system can be improved.

4. Simplified user experience: Simplify the interaction between users and blockchain technology so that non-technical users can easily participate in the blockchain ecosystem. This includes improving wallet interfaces, transaction processes, and asset management tools to make them more intuitive and easy to use.

By driving innovation in these key areas, semi-fungible tokens will be able to optimize the performance of existing technologies and platforms, as well as open up new application scenarios and market opportunities, ultimately promoting the healthy and sustainable development of the entire blockchain industry.

ERC-404 Token Overview

First, ERC-404 tokens introduce the concept of semi-fungibility. Semi-fungible tokens are a brave attempt to find a middle ground between fully interchangeable (such as ERC-20 tokens) and unique (such as ERC-721 tokens). However, this attempt not only brings technical challenges, but also raises questions about market acceptance. Although it theoretically provides a more flexible ownership model for assets, in practice, this semi-fungibility may lead to market confusion, and investors may find it difficult to judge the true value of tokens.

Unique Value Proposition

Semi-fungibility

ERC-404 tokens introduce a new concept of semi-fungibility to the blockchain ecosystem. By building a bridge between the fungibility of ERC-20 tokens and the uniqueness of ERC-721 tokens, ERC-404 provides a versatile solution for digital assets.

Fragmented Ownership

The standard allows for fragmented ownership of unique digital assets, such as art or virtual real estate. It democratizes access to high-value assets by making them more accessible and liquid.

Independent Trading

The dual nature of ERC-404 tokens and their corresponding NFTs enables independent trading, enhancing the liquidity and utility of digital asset markets.

Mechanisms

Each ERC-404 token is intrinsically linked to a unique NFT, creating a symbiotic relationship between fungible and non-fungible assets. The minting of an NFT results in the creation of a corresponding fungible token, and vice versa. The splitting of a token results in the destruction of the associated NFT, while the merging of enough split shares to form a full token triggers the minting of a new NFT.

Risks

Lack of Formal Review and Security Audits

1. Security Vulnerabilities

The biggest risk comes from the fact that ERC-404 tokens have not undergone rigorous security audits. Without these audits, there may be undiscovered vulnerabilities that malicious actors could exploit, leading to loss of funds or other security vulnerabilities.

2. Experimental Nature

While promising, the innovative aspects of ERC-404 also introduce uncertainty. New code, especially unbattled code, carries a higher risk of containing critical bugs or design flaws.

Compatibility

1. Compatibility with Existing Infrastructure

Official ERC standards benefit from widespread support from wallets, exchanges, and other infrastructure. ERC-404’s unofficial status could hinder its compatibility, limiting its usefulness and seamless interaction with the broader Ethereum ecosystem.

2. Interoperability Issues

The unique mechanisms of ERC-404 tokens may cause compatibility issues with existing smart contracts and dApps designed for ERC-20 and ERC-721 tokens. These issues may complicate their use in certain applications or even make them unusable without significant modifications.

Community and Ecosystem Impact

1. Precedent for Unofficial Standards

Adoption of ERC-404 without it going through a formal EIP process could encourage the proliferation of additional experimental standards without proper review. This could lead to a fragmented ecosystem with an increased risk of security incidents due to a lack of coordinated review and audits.

2. Trust Issues

Part of the strength of the Ethereum ecosystem lies in trust in its standards and governance processes. Bypassing these processes could undermine confidence among developers, investors, and users, potentially slowing innovation and adoption.

ERC-404 Project Introduction

404Bakery

Bakery 404 represents a revolutionary advancement in democratizing token creation in the Ethereum blockchain ecosystem. By leveraging the unique properties of ERC-404 tokens, Bakery 404 provides a straightforward, easy-to-use, and fast platform for anyone interested in deploying custom tokens.

404Bakery's Innovation

Bakery 404 simplifies the token creation process, making it accessible to a broad audience, not just professional builders. This ease of accessibility is critical to fostering innovation and participation in the Ethereum ecosystem.

Key Features

1. User-friendly Token Creation

Through a streamlined process, users can create tokens by specifying properties such as name, ticker symbol, and supply, without having to write any code.

2. Fast Deployment

Tokens can be deployed on the Ethereum mainnet in minutes, with plans to expand support to Base and Arbitrum networks.

3. Accessibility

The use of a Telegram bot to guide the token creation process makes it more accessible to a broad user base, removing barriers to entry into the crypto space.

Bakery 404 Operation

The platform utilizes an intelligent Telegram bot that serves as an interactive guide to the token creation process. This approach not only simplifies the experience, but also adds a layer of engagement that traditional token creation tools lack. Users are able to make decisions about the characteristics of their tokens through a conversational interface.

Step 1: Start a conversation with the bot Action: Open Telegram and find the 404 Bakery Deploy Bot using the link provided. Purpose: This initiates your interaction with the bot, which will guide you through the deployment process.

Step 2: Create a new Ethereum wallet Action: If you don't have an Ethereum wallet, the bot will generate one for you. Make sure to store the provided private key securely. Purpose: An Ethereum wallet is essential for managing your ERC-404 tokens and paying for deployment fees.

Step 3: Fund your wallet Action: Make sure you have at least 0.3 ETH in your newly created or existing Ethereum wallet. Purpose: ETH is used to pay for the gas fees associated with deploying your token on the Ethereum mainnet.

Step 4: Start deployment Action: Type /deploy in your chat with the bot to start the deployment process. Purpose: This command indicates to the bot that you are ready to proceed with creating your ERC-404 token.

Step 5: Provide ERC-404 Token Details Action: When prompted by the bot, enter the name and ticker symbol of your ERC-404 token. Purpose: These details personalize your token, making it identifiable on the blockchain.

Step 6: Add IPFS and Website Links Action: Provide an IPFS link containing the user's token metadata, as well as a website link for the token. Purpose: The IPFS link hosts your token's metadata in a decentralized manner, while the website link provides additional information about your token.

Step 7: Contract Deployment Action: Upon confirmation, the bot will deploy your ERC-404 token contract on the Ethereum mainnet. Purpose: This finalizes the creation of your token, making it usable for your intended purpose.

Token Economy

Source: 404Bakery Doc

1. Liquidity Pool (90%): Locked on UNCX

2. Ecosystem (5%): For activities in partnership with well-known marketing agencies, influencers, and centralized exchanges (CEX).

3. Team (5%) Purpose: Incentivize and retain the team.

Token Holder Benefits

1. Profit Sharing Model

Holders of $BAKE tokens are able to earn 50% of the revenue from transaction fees on the platform. This innovative model provides a passive income stream for token holders, directly tying the success of the Bakery404 platform to the financial well-being of its community.

2. Exclusive Access and Free Waivers

By holding a minimum threshold of just 0.1% of $BAKE tokens in their wallets, members can use all Bakery404 services for free. This exclusive benefit includes the ability to create ERC-404 tokens, deploy smart contracts, and use other platform features, enhancing the utility and appeal of $BAKE tokens.

Asterix Labs

Based on the groundbreaking DN404 technology, Asterix Labs is committed to redefining the landscape of digital assets and their underlying standards.

What is DN404

DN404 is a revolutionary token standard that challenges the established ERC404 and is jointly created by a group of cryptocurrency enthusiasts. It aims to provide similar benefits to ERC404, but with higher efficiency and lower transaction costs. By adopting a dual contract system that integrates an ERC-20-based divisible token share contract and a mirrored ERC-721 contract for unique NFTs, DN404 addresses the limitations of its predecessor while ensuring compatibility with existing token standards. This focus on efficiency and security has quickly gained support from developers and users seeking a more sustainable decentralized NFT solution.

DN404 Features

1. Dual Contract System

Unlike ERC404, which attempts to merge the ERC-20 and ERC-721 standards into a single contract, DN404 utilizes two interconnected contracts. This approach simplifies the token creation process and minimizes potential vulnerabilities and security risks.

2. Reduced Transaction Costs

DN404 offers a competitive advantage in terms of transaction costs, with developers reporting an average fuel savings of approximately 20% compared to ERC404. This reduction is particularly important in the Ethereum network, where fuel fees can fluctuate wildly.

3. Enhanced Security

DN404’s separated contract structure provides enhanced security features, reducing the risk of potential vulnerabilities compared to ERC404’s single contract approach.

4. Efficiency and Performance

DN404 prioritizes efficiency and security, providing a reliable framework for tokenization and asset management, making it a strong competitor to ERC404 within the Ethereum ecosystem. Source: Opensea, DEXTools

The NFT floor price is 0.9ETH. Although the trading volume is not large, the price of the token has risen more than 10 times since the issuance date.

DeFrog

As the first PFP project driven by the ERC404 token standard, DeFrog includes 10,000 uniquely designed DeFrogs, each of which offers a mix of rarity, artistic value and technological innovation. Source: Opensea, DEXTools

As the first ERC 404 PFP project, it once had a tenfold increase in the early stage, and now it has fallen back to about two times.

Anon

ANON has developed the ERC352 standard, a milestone innovation in the NFT ecosystem. This new standard aims to address and overcome the limitations of previous NFT standards (including ERC721 and ERC1155) by introducing enhanced liquidity mechanisms, improved rarity functions, and support for fractional ownership. The ERC352 standard introduced by ANON is based on the foundational principles of ERC404 and further pushes the boundaries of digital asset management and ownership possibilities.

Key Innovations

1. Enhanced Liquidity Mechanism

ANON's ERC352 standard significantly reduces gas fees and enhances market liquidity and accessibility by integrating whitelist functionality to facilitate seamless interaction between ERC20 and ERC721 standards.

2. Improved Rarity Functionality

ERC352 addresses one of the most pressing challenges in the NFT space: rarity management. Through a sophisticated contract mechanism, it ensures that the rarity and uniqueness of each NFT is maintained, thereby maintaining their value and appeal.

3. Support for Fragmented Ownership

By strengthening the mechanism for token fragmentation, ERC352 opens up new opportunities for a wider range of investors to participate in the NFT market. Not only does this make NFTs more accessible, but it also increases the rarity and value of NFTs by locking fractions before the entire token is available for purchase. Source: Opensea, DEXTools

The project NFT has not yet had any trading volume on Opensea, and the token was only hyped up to a tenfold increase when it was listed, and now it has fallen back to the opening price.

Alphabet

Alphabet uses the ERC-404 token standard and cross-chain messaging to innovate the points ecosystem. Although the founder's background is anonymous, he also has rich qualifications. He has served in the encryption team of UNICEF and the encryption team of Deloitte.

Project Overview

Alphabet's mission is to transform the way points programs are implemented, leveraging the ERC-404 standard to promote transparent, efficient, and decentralized incentive schemes. This initiative not only seeks to decentralize points programs, but also aims to redefine their utility and accessibility on a global scale.

1. Innovative Use of ERC-404

Inspired by ERC-404's novel approach, which blends the fungible and non-fungible aspects of tokens, Alphabet plans to apply this standard to create a more fluid and versatile points system. The system aims to significantly reduce operating costs while increasing the liquidity and utility of points as incentives.

2. L1 Blockchain Development

At the heart of Alphabet is the creation of a new L1 blockchain designed specifically for running points programs. Alphabet's primary L1 token holders can stake their tokens to earn fees for these programs, introducing a sustainable economic model that rewards participation and support for the ecosystem.

3. Art and Community Engagement

Alphabet also emphasizes community engagement and aesthetic appeal, with plans to refresh its art in the coming weeks. The project has allocated a significant marketing budget to ensure visibility and appeal within the crypto community, attracting key opinion leaders and movements to spread the message.

Goals and Vision

1. Decentralization of Points Programs

Alphabet aims to shift the paradigm of current points programs from centralized to decentralized, providing the protocol with a transparent and autonomous mechanism to incentivize and reward community participation.

2. On-chain Implementation

By leveraging ERC-404 and cross-chain messaging, Alphabet seeks to bring traditional points programs to the blockchain, ensuring that these incentives are accessible, transparent, and efficient.

3. Building a composable ecosystem

The project focuses on creating a gas fee efficient and composable ERC-404 standard that can be seamlessly integrated into different protocols and blockchains, facilitating a universal system for earning and distributing on-chain points.

Project Performance

Source: Opensea, DEXTools

The project NFT has only a small amount of trading volume on Opensea, and the token was only hyped up to a tenfold increase when it was listed, and now it has fallen back to the opening price.

SHEboshis

In October 2021, the Shib community introduced its first NFT collection, Shiboshis, including 10,000 male characters. Recently, SHEboshis marks an innovation in the women and NFT space, strongly supporting the future of NFTs within the Shib ecosystem. SHEboshis were developed using ERC-404 technology and are designed to expand the functionality and inclusivity of the Shib NFT space.

Mechanism

SHEboshis offer a unique distribution mechanism based on the number and length of Shiboshis held by a user, with Leash holders having priority when purchasing. However, due to a contract vulnerability, the initial phase was skipped and went straight to the public sale. These tokens, built on ERC-404 technology, are tradable and will be traded on Uniswap and Shibaswap.

Pairing Mechanism

Shib plans to introduce a pairing mechanism between Shiboshi and SHEboshis, hinting at the generation of offspring NFTs/tokens. The specific details of this output have not yet been made public, and functionality is expected to launch within this year.

Integration into Shiboshi Game

Similar to Shiboshis, SHEboshis will play a role in the Shiboshi Game, a strategy game that utilizes NFTs within the Shib ecosystem. This integration emphasizes the equal status and potential value alignment between Shiboshis and SHEboshis.

Project Performance

As a product officially launched by Shib, it is expected that there will be continued empowerment in the future, and the first generation of NFT series Shiboshis There was also a good increase in the early stage. The second-generation Sheboshis are relatively cheap, and the price may recover after the launch of ERC 404 transactions.

ERC-X

MINER is a collection of 10,000 avatars or equivalents made possible by the implementation of ERC-X, an experimental token standard. The standard distinguishes itself by offering a versatile approach to tokenization, combining features from several established ERC standards, including ERC20, ERC404, ERC721, ERC721A, ERC721Psi, ERC1155, and ERC1155Delta.

ERC-X optimizes the practicality and efficiency of token standards on the Ethereum network. Its design facilitates the integration of various standards into a unified framework, allowing for a wide range of applications while maintaining fuel efficiency and scalability.

1. Fuel Efficiency and Cost Effectiveness

One of the hallmark features of ERC-X is its remarkable fuel efficiency. By optimizing transaction costs, ERC-X makes it possible to trade tokens with a small amount of capital, depending on the gas price of Ethereum. This efficiency contrasts with the often prohibitive transaction costs under the original standard, making ERC-X a practical solution for large-scale operations.

While ERC-X has made significant progress in improving fuel efficiency and reducing transaction costs, this optimization may come at the cost of more complex underlying logic. This complexity is not only a challenge for developers building applications on ERC-X, but it may also increase the risk of security vulnerabilities, as more complex code is often more difficult to audit and verify.

2. Scalability and flexibility

ERC-X's scalability is evident in its ability to support projects of any size, thanks to its flexible token/NFT ratio. This adaptability is further enhanced by its ability to present NFTs as ERC721 or ERC1155 tokens. Such flexibility ensures that ERC-X can meet a wide range of applications from simple tokens to complex NFT integrations.

While ERC-X has contributed to the scalability and flexibility of tokens and NFTs, this cross-standard integration may also cause compatibility issues. In particular, unexpected technical obstacles may be encountered when interoperating with legacy standards and infrastructure. This requires a continuous update and adaptation process to ensure that ERC-X can run smoothly in the existing ecosystem.

3. Innovation through ERC1155Delta

The integration of elements of ERC1155Delta into ERC-X is a key innovation that provides a significant improvement in the optimization capabilities of the standard. ERC1155Delta's extension of the ERC1155 standard enables ERC-X to provide dual functionality; it supports the generation of both ERC721 and ERC1155 tokens, ensuring compatibility with markets that support either format.

While the integration of ERC1155Delta into ERC-X brings new innovations to the token standard and adds dual functionality, the complexity of this design may cause developers and users to encounter difficulties in understanding and using it in actual applications. Especially for those users who are not familiar with the features of ERC1155Delta, understanding how to effectively utilize these features may require a certain learning curve.

4.EasyLaunch: Simplifying Token Launch

ERC-X's EasyLaunch feature simplifies the token launch process to just two steps: deployment and liquidity addition. This simplicity is a significant improvement over the more complex processes associated with other standards, which require multiple preliminary steps before adding liquidity. Therefore, EasyLaunch represents a major advancement in making token launches more accessible and less time-consuming.

Although the EasyLaunch feature simplifies the token launch process, is it possible that this simplification obscures certain key considerations for token issuance? For example, considerations for liquidity management, security verification, and long-term token economics strategies may be overlooked because of the simplification of the process. Therefore, while EasyLaunch improves accessibility and efficiency, it also requires developers and project parties to be cautious when using it, ensuring that in-depth project planning and prudent security audits are not sacrificed.

Summary

Fragmented ownership: democratization or complexity?

The introduction of fragmented ownership, while intended to democratize access to high-value assets by lowering the entry barrier, actually increases the complexity of trading and management. The practicality of this approach is limited by users' understanding and adaptability to such asset management, as well as the market's demand for liquidity for such fragmented assets.

Independent transactions: liquidity enhancer or potential source of chaos?

The dual nature of ERC-404 tokens and their NFTs, which are designed to enhance market liquidity, sounds exciting. But in reality, this may lead to market segmentation, with one part of the market focusing on traditional NFTs and the other pursuing the new model of ERC-404. This segmentation may lead to liquidity being actually diluted rather than enhanced.

In summary, ERC-404-related projects are still in their early stages. Although in the early stages, these projects experienced a certain appreciation due to the novelty of ERC-404 and the leadership of the leading project Pandora, the price then gradually fell back to near the opening price. In addition, ERC-404 has also spawned new standards such as ERC-352 and DN404. These projects demonstrate the bottom-up self-adjustment capabilities of the Ethereum ecosystem. This community-driven asset management approach has already established its user base. As long as the technology and user experience are continuously optimized in the future, it is expected to build a complete ecological sector.

Tiny_spl

Tiny SPL represents a new approach to solving the challenge of on-chain data storage costs within the Solana ecosystem through the use of innovative state compression technology.

Background

Solana's Rent Mechanism

Solana implements a unique account model that includes a rent mechanism. Unlike Ethereum, which primarily charges transaction fees, Solana also imposes a rental fee on accounts to store data on the blockchain. This rent is calculated based on the account's token balance and is intended to ensure efficient use of storage resources. Accounts that are unable to pay the rent may be deleted, although accounts with balances exceeding two years of rent are exempted. As technology advances and storage costs decrease, rental costs are expected to decline, although fluctuations in SOL prices may affect the actual cost burden on users.

How Tiny SPL Works

Tiny SPL emerges as a smaller, more efficient iteration of the Solana Program Library (SPL) token standard. Its main innovation is the ability to enable token ownership without an associated rental cost, thanks to state compression. This approach significantly reduces on-chain storage requirements by leveraging Merkle trees to compress data verifiably into a single hash. This breakthrough has particular application in reducing the cost of minting NFTs on Solana by several orders of magnitude, as demonstrated by Helium Mobile, which minted nearly a million NFTs at a fraction of the traditional cost.

Tiny SPL tokens differ from standard SPL tokens:

1. No rent payments

By leveraging state compression, Tiny SPL tokens circumvent the need to pay rent, addressing one of the main costs associated with token ownership on Solana. NFT section visibility: Unlike regular tokens that appear in your wallet balance, Tiny SPL tokens are only visible in the NFT section, reflecting their unique approach to storage and management.

2. Interactive experience

Tiny SPL introduces a unique token management experience, including a process for splitting and merging tokens. These operations are critical to adjusting the number of tokens traded and incur a nominal gas fee.

Project Introduction

Deez Nutz

As an experiment of the Tiny SPL protocol, Deez Nutz provides holders with the flexibility to manage their holdings in innovative ways. It allows users to split, merge and exchange their tokens directly through the interface, connecting their digital wallets. This token is designed to provide a seamless experience for users who want to customize their asset holdings to their needs.

Key Features

1. Split $NUTS

Holders can split their $NUTS tokens into smaller denominations, allowing for more granular control over their assets. This can be done both in integer and decimal form, with a minimum split amount of 1. This feature is particularly useful for users who wish to distribute their assets or manage them more efficiently.

2. Merge $NUTS

Users can choose to merge their $NUTS balances, combining up to 50 token balances at a time. This can simplify the user's wallet and simplify asset management. The process involves selecting the balances to be merged and confirming the transaction through their wallet.

3. Swap $NUTS

The platform provides a swap feature where users can exchange their $NUTS tokens for SOL (and vice versa), with the transaction limit set to the user's highest combined token balance minus 1. This feature is suitable for users who want to diversify their portfolio or adjust their holdings based on market dynamics. Source: Magic Eden, Dextools

The project has not performed as well as expected for the time being, and has fallen by about 50% from the issue price, and the market has yet to be accepted by the public.

Summary

Tiny SPL is currently in the technical experiment stage, and its initial challenges around splitting and merging functions have been resolved. The protocol is able to reduce storage costs while maintaining the security and decentralization of Solana's base layer, marking a major innovation. However, the actual application and future adoption of Tiny SPL will depend on its ability to meet the needs of projects that need to issue tokens on a large scale without incurring rental costs.

Solana co-founder Anatoly Yakovenko also highlighted the potential importance of Tiny SPL through social media participation, emphasizing its potential significance within the ecosystem. The community's response and the evolving use cases of the protocol will further determine its position in Solana's broader strategy to optimize blockchain efficiency and accessibility.

Tiny SPL provides an alternative to account deletion by circumventing Solana's need to pay rent. The innovation of this mechanism is that it provides token holders with a way to store tokens almost for free. However, this bypass of the rent mechanism may be seen as a distortion of the original design principles of the Solana ecosystem. The rent mechanism is established to ensure the efficient use of resources and the sustainability of the system. The emergence of Tiny SPL may raise questions about the enforcement of this principle.

Asteroid

Asteroid is a pioneering protocol framework created on the Cosmos Hub through a collaboration between Delphi Labs and the Astroport Foundation. It stands out by allowing anyone to publish data permanently on the blockchain, introducing a set of tools including indexers, explorers, APIs, and specifications for Cosmos’ fungible tokens (CFT-20), as well as token distribution, minting tools, and comprehensive software solutions. The introduction of $ROIDS as the first CFT-20 token highlights its innovative approach to tokenization and data inscription on the Cosmos Hub.

Mechanism Overview and Technical Analysis

Asteroid simplifies the blockchain interaction process, enabling users to connect through the Keplr wallet to publish data or mint CFT-20 tokens. This process enables users to interact with web3 technology without having to deeply understand smart contracts.

1. Metaprotocol Framework

Asteroid operates as a metaprotocol framework, meaning it provides a base layer on which other protocols or applications can be built. This extensibility is critical to fostering innovation and promoting diverse use cases within the Cosmos ecosystem.

1. Arbitrary Content Inscription

The framework’s ability to support arbitrary content inscription is innovative in the market. It breaks down barriers that typically require smart contract development, making it possible to publish a wide variety of data types directly on the blockchain. This feature has the potential to significantly lower the barrier to entry for developers and creators looking to leverage blockchain technology.

CFT-20 Token Overview

Asteroid provides a new mechanism for asset creation and distribution within the Cosmos ecosystem through the introduction of the CFT-20 token. Fungible tokens are critical for a wide range of applications, from financial instruments to digital collectibles, enhancing the utility and flexibility of the Cosmos Hub.

1. Toolkit Accessibility

The open-source nature of the Asteroid toolkit promotes a transparent and inclusive development environment. By providing exploration, indexing, and token minting tools, Asteroid ensures that developers have the necessary resources to innovate and effectively expand the capabilities of the Cosmos Hub.

1. Tokenization Innovation

The introduction of the CFT-20 token expands the utility and interoperability of digital assets within the Cosmos ecosystem.

1. Simplifying Blockchain Interactions

Making blockchain technology accessible to non-experts is an important step towards democratizing the web3 space.

Project Introduction

Basically, Asteroid Protocol is like the Unisat market of the Cosmos ecosystem, providing a one-stop inscription creation or Marketplace service. Although the track has not been accepted by the mainstream, the project party is still actively building it.

Summary

Asteroid simplifies the way to interact with the blockchain, coupled with the innovative CFT-20 token standard, positioning it as a catalyst for the future development of the Cosmos ecosystem. The scalability and inclusiveness of the framework are enough to transform the Cosmos Hub into a central database for many projects. Drawing on the catalytic effect of ordi, rats and other inscriptions on the Bitcoin ecosystem, we can expect CFT-20 to bring the same effect to Cosmos.

Asteroid supports the ability to remember arbitrary content, which is an innovation in the market. This opens the door for various data types to be permanently stored on the blockchain. The prospect of this capability is exciting because it greatly increases the scope and depth of blockchain applications. However, arbitrary content remembering also brings problems of data flooding and quality control. Without proper review and filtering mechanisms, the blockchain may be flooded with irrelevant or inappropriate content, which not only increases the storage burden, but also reduces the value and credibility of the entire ecosystem.

These protocol standards show the following common industry trends:

• Flexibility and liquidity of assets: The market needs more flexible asset management tools that can adapt to a variety of financial and non-financial uses.

• Cost efficiency: As blockchain applications expand, reducing operating costs becomes an important need, whether by reducing transaction fees or storage costs.

• Participation of non-technical users: As blockchain technology becomes more popular, simplifying technical complexity to attract non-technical users to participate has become an important development direction.

In the long run, the adoption of innovations depends mainly on their ability to solve core market needs and the potential economic and social impact they bring. Asteroid has the potential to have a profound impact on a wide range of applications because of its emphasis on the participation of non-technical users and the concept of meta-protocol. This emphasis on inclusiveness and ease of use may lead to faster market adoption and ecosystem growth. ERC-404 solves the market demand for complex asset management tools through its flexible asset ownership and liquidity enhancement features. Although it faces some market confusion and security challenges, its potential market breadth cannot be ignored. Although TinySPL targets a specific problem (data storage costs) of a specific ecosystem (Solana), its impact may be limited, especially when multi-chain and cross-chain operations become the norm.