Every innovation in the Web3 protocol standard is not only a technological leap forward, but also a catalyst for the birth of new models and new asset forms in the entire digital economy. Innovations in standards, especially improvements in asset representation, interoperability, and how users interact, provide developers with the opportunity to build more complex, responsive, and user-friendly applications. As blockchain technology develops, we have witnessed the evolution from single-function tokens to multi-functional smart contract platforms, with each step 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 conducts a certain evaluation of these standards.
We believe that the innovation of semi-fungible tokens should consider key issues in four directions, and their performance in practical applications and market acceptance should also be considered in specific evaluations.
- Enhanced asset interoperability : In multi-chain and cross-chain environments, the free flow and interchange of assets is an important direction for the development of blockchain technology. The new protocol standard should support seamless asset transfer and smart contract interoperability between different blockchain platforms.
- Binding of assets and identities : With the popularity 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 opens up new models of identity-based customized services and rights management.
- 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 response speed of the system can be improved.
- Simplification of user experience : Simplify the interaction between users and blockchain technology, allowing non-technical users to easily participate in the blockchain ecosystem. This includes improving the wallet interface, transaction processes, and asset management tools to make them more intuitive and easier to use.
By promoting innovation in these key areas, semi-fungible tokens will be able to optimize the performance of existing technologies and platforms, and also 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 fungible (like ERC-20 tokens) and unique (like ERC-721 tokens). However, this attempt brings not only technical challenges, but also raises questions about market acceptance. Although it theoretically provides a more flexible ownership model for the asset, in practice, this semi-homogeneity can lead to market confusion, and investors may have difficulty judging the true value of the token.
unique value proposition
semi-homogeneity
ERC-404 tokens introduce the new concept of semi-fungibility to the blockchain ecosystem. ERC-404 provides a versatile solution for digital assets by bridging the fungibility of ERC-20 tokens and the uniqueness of ERC-721 tokens.
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 mobile.
arm's length
The dual nature of ERC-404 tokens and their corresponding NFTs enables independent transactions, enhancing the liquidity and utility of digital asset markets.
mechanism
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 division of a token results in the destruction of the associated NFT, while the merging of enough divided shares to form a complete token triggers the minting of a new NFT.
risk
Lack of formal reviews and security audits
- Security vulnerability
The biggest risk comes from the fact that ERC-404 tokens have not undergone strict security audits. Without these audits, there may be undiscovered vulnerabilities that could be exploited by malicious actors, resulting in the loss of funds or other security breaches.
- experimental nature
The innovative aspects of ERC-404, while promising, also introduce uncertainty. New code, especially code that has not been field-tested, has a higher risk of containing critical bugs or design flaws.
compatibility
- Compatibility with existing infrastructure
The official ERC standard benefits from widespread support from wallets, exchanges, and other infrastructure. ERC-404’s unofficial status may hinder its compatibility, limiting its usefulness and seamless interaction with the broader Ethereum ecosystem.
- interoperability issues
The unique mechanics of ERC-404 tokens may cause compatibility issues with existing smart contracts and dApps designed for ERC-20 and ERC-721 tokens. These issues can complicate their use in some applications or even prevent their use without significant modifications.
Community and ecosystem impacts
- Precedent for unofficial standards
Adopting ERC-404 without going through a formal EIP process could encourage the proliferation of additional experimental standards without proper review. This can lead to a fragmented ecosystem with an increased risk of security incidents due to a lack of coordinated review and auditing.
- trust issues
Part of the strength of the Ethereum ecosystem is trust in its standards and governance processes. Bypassing these processes can undermine confidence among developers, investors, and users, potentially slowing innovation and adoption.
ERC-404 project introduction
404Bakery
Bakery 404 represents a revolutionary step forward in democratizing token creation within 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 wide audience not just professional builders. This ease of accessibility is critical to fostering innovation and participation in the Ethereum ecosystem.
Main features
- User-friendly token creation
Through a streamlined process, users can create tokens by specifying properties such as name, ticker, and supply without writing any code.
- Rapid deployment
Tokens can be deployed on the Ethereum mainnet in minutes, with plans to expand support to the Base and Arbitrum networks.
- accessibility
Using Telegram bots 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 process
The platform utilizes a smart Telegram bot that serves as an interactive guide to the token creation process. This approach not only simplifies the experience, but also adds a level 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. Ensure the provided private key is stored securely. Purpose: Ethereum wallets are essential for managing your ERC-404 tokens and paying deployment fees.
Step 3: Fund your wallet : 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 costs associated with deploying your token on the Ethereum mainnet.
Step 4: Start the deployment operation: Enter /deploy in the 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 tokens.
Step 5: Provide ERC-404 Token Details Action: When prompted by the bot, enter the name and ticker of your ERC-404 token. Purpose: These details personalize your tokens and make them identifiable on the blockchain.
Step 6: Add IPFS and website link operation: Provide an IPFS link containing the user's token metadata and a website link for the token. Purpose: IPFS links host the metadata of your tokens in a decentralized manner, while website links provide additional information about your tokens.
Step 7: Contract deployment operation: After confirmation, the robot 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
- Liquidity pool (90%): locked on UNCX
- Ecosystem (5%): For campaigns with well-known marketing agencies, influencers, centralized exchanges (CEX), etc.
- Team (5%) Purpose: Motivate and retain the team.
Token holder advantages
- profit sharing model
Holders of the $BAKE token are able to earn 50% from transaction fees on the platform. This innovative model provides token holders with a passive income stream, directly tying the success of the Bakery404 platform to the financial well-being of its community.
- Exclusive Access and Free Waivers Members can use all Bakery404 services for free by holding a minimum threshold of just 0.1% of $BAKE tokens in their wallet. This exclusive benefit includes the ability to create ERC-404 tokens, deploy smart contracts, and use other platform features, enhancing the $BAKE token’s utility and appeal.
Asterix Labs
Based on groundbreaking DN404 technology, Asterix Labs is committed to redefining the landscape of digital assets and their underlying standards.
What is DN404
As a revolutionary token standard, DN404 challenges the established ERC404 and was created by a group of cryptocurrency enthusiasts. It is designed to provide similar benefits to ERC404, but with greater efficiency and lower transaction costs. By employing 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 sex. This focus on efficiency and security quickly gained support from developers and users seeking more sustainable decentralized NFT solutions.
DN404 Features
- dual contract system
Unlike ERC404, which attempts to merge the ERC-20 and ERC-721 standards into a single contract, DN404 utilizes two contracts that are linked to each other. This approach simplifies the token creation process and minimizes potential vulnerabilities and security risks.
- Reduce transaction costs
DN404 offers a competitive advantage in terms of transaction costs, with developers reporting average gas savings of approximately 20% compared to ERC404. This reduction is particularly important in the Ethereum network, where gas fees can fluctuate wildly.
- Enhance security
DN404's separated contract structure provides enhanced security features, reducing the risk of potential vulnerabilities compared to ERC404's single-contract approach.
- 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.
Project performance
Source: Opensea, DEXTools
The floor price of NFT is 0.9 ETH. Although the transaction volume is not large, the price of the token has increased more than 10 times since the day of issuance.
DeFrog
As the first PFP project powered by the ERC404 token standard, DeFrog includes 10,000 uniquely designed DeFrogs, each offering a blend of rarity, artistic value, and technological innovation.
Project performance
Source: Opensea, DEXTools
As the first ERC 404 PFP project, there was a tenfold increase in the initial stage, but now it has dropped to about twice the height.
Anon
ANON developed the ERC352 standard, a landmark innovation in the NFT ecosystem. This new standard aims to address and overcome limitations in previous NFT standards, including ERC721 and ERC1155, by introducing enhanced liquidity mechanisms, improved rarity features, 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 innovation
- Enhanced liquidity mechanism
ANON's ERC352 standard promotes seamless interaction between the ERC20 and ERC721 standards by integrating whitelisting capabilities, significantly reducing gas fees and enhancing market liquidity and accessibility.
- Improved rarity functionality
ERC352 solves one of the most pressing challenges in the NFT space, rarity management. Through complex contract mechanisms, it ensures that the rarity and uniqueness of each NFT is maintained, thereby maintaining their value and appeal.
- Support fragment ownership
By enhancing the mechanism of token fragmentation, ERC352 opens up new opportunities for a wider range of investors to participate in the NFT market. Not only does this make the NFT more accessible, but it increases the rarity and value of the NFT by locking up points before the entire token is available for purchase.
Project performance
Source: Opensea, DEXTools
The project NFT has no trading volume on Opensea, and the token was only hyped up to a tenfold increase when it was listed. Now it has fallen back to the opening price.
Alphabet
Alphabet leverages the ERC-404 token standard and cross-chain messaging to revolutionize the points ecosystem. Although the background of the founder is anonymous, he also has rich qualifications. Previously held roles on UNICEF’s encryption team and Deloitte’s encryption team.
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 usefulness and accessibility on a global scale.
- Innovative uses of ERC-404
Inspired by ERC-404’s novel approach, which mixes 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 is designed to significantly reduce operating costs while increasing the liquidity and utility of points as incentives.
- L1 Blockchain Development
At its core, Alphabet is creating a new L1 blockchain specifically designed to run the points program. 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 supports the ecosystem.
- arts and community engagement
Alphabet, which also emphasizes community engagement and aesthetic appeal, plans to refresh its art in the coming weeks. The project has been allocated a significant marketing budget to ensure visibility and traction within the crypto community, engaging key opinion leaders and campaigns to spread the word.
goals and vision
- Decentralization of the points program
Alphabet aims to shift the paradigm of the current points program from centralized to decentralized, providing the protocol with a transparent and autonomous mechanism to incentivize and reward community participation.
- On-chain implementation
By leveraging ERC-404 and cross-chain messaging, Alphabet seeks to bring traditional points programs to the blockchain, ensuring these incentives are accessible, transparent and efficient.
- Build 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, promoting 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 ten times 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 collectible Shiboshis, including 10,000 male characters. Recently, SHEboshis have marked innovation for women and the NFT space, strongly supporting the future of NFT within the Shib ecosystem. SHEboshis are developed using ERC-404 technology and aim to expand the functionality and inclusivity of the Shib NFT field.
mechanism
SHEboshis provides a unique distribution mechanism based on the amount and holding time of Shiboshis held by users, and Leash holders have priority when purchasing. However, due to a contract loophole, the initial stage was skipped and went directly to public sales. Built on ERC-404 technology, these tokens are tradable and will be traded on Uniswap and Shibaswap.
pairing mechanism
Shib plans to introduce a pairing mechanism between Shiboshi and SHEboshis, implying the generation of future generations of NFTs/tokens. Specific details of this output have not yet been made public, with the feature expected to launch within the year.
Integrated into Shiboshi games
Similar to Shiboshis, SHEBoshis will play a role in the Shiboshi game, a strategy game utilizing NFTs within the Shib ecosystem. This integration emphasizes the equal status and underlying value alignment between Shiboshis and SHEboshis.
Project performance
As an official product launched by Shib, it is expected to continue to be empowered in the future, and the first generation NFT series Shiboshis also experienced good growth in the initial stage. The valuation of the second-generation Sheboshis is relatively cheap, and the price may be expected to rebound 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 differentiates itself by providing a versatile tokenization method that combines features of several established ERC standards, including ERC20, ERC404, ERC721, ERC721A, ERC721Psi, ERC1155 and ERC1155Delta.
ERC-X optimizes the utility and efficiency of the token standard on the Ethereum network. Its design facilitates the integration of various standards into a unified framework, allowing a wide range of applications while maintaining fuel efficiency and scalability.
- Fuel efficiency and cost effectiveness
One of ERC-X’s signature features is its remarkable fuel efficiency. By optimizing transaction costs, ERC-X makes it possible to trade tokens with small capital, depending on Ethereum’s gas price. This efficiency contrasts with the recurring prohibitive transaction costs under the original standard, making ERC-X a practical solution for large-scale operations.
Although ERC-X has made significant progress in improving fuel efficiency and reducing transaction costs, this optimization may bring more complex underlying logic. This complexity not only presents a challenge for developers building applications on ERC-X, but may also increase the risk of security vulnerabilities, as more complex code is often more difficult to audit and verify.
- 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 render NFTs as ERC721 or ERC1155 tokens. Such flexibility ensures that ERC-X can meet a wide range of applications from simple token transfers to complex NFT integrations.
Although ERC-X has made contributions in improving the scalability and flexibility of tokens and NFTs, this cross-standard integration may also cause compatibility issues. Especially when interoperating with legacy standards and infrastructure, you may encounter unexpected technical obstacles. This requires a continuous update and adaptation process to ensure that ERC-X can run smoothly in the existing ecosystem.
- Innovation through ERC1155Delta
Integrating elements of ERC1155Delta into ERC-X is a key innovation that provides a significant improvement in the standard's optimization capabilities. ERC1155Delta's extension to 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.
Although integrating 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. on the difficulty. 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.
- EasyLaunch: Simplifying Token Launching
ERC-X’s EasyLaunch feature simplifies the token launch process into 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. EasyLaunch therefore represents a significant advancement in making token launches more accessible and less time-consuming.
Although the EasyLaunch function simplifies the process of token launch, may this simplification obscure some key considerations of token issuance? For example, considerations for liquidity management, security verification, and long-term token economics strategies may be overlooked due to the simplification of the process. Therefore, although EasyLaunch improves accessibility and efficiency, it also requires developers and project parties to be cautious when using it to ensure that in-depth project planning and prudent security audits are not sacrificed.
Summarize
Fragmented ownership: democratization or complexity?
The introduction of fragmented ownership, while intended to democratize access to high-value assets by lowering the barrier to entry, actually increases transaction and management complexity. The practicality of this approach is limited by users’ understanding and adaptability to such asset management, as well as the market’s demand for the liquidity of such fragmented assets.
Independent trading: Liquidity enhancer or potential source of chaos?
The dual nature of ERC-404 tokens and their NFTs, designed to enhance market liquidity, sounds exciting. But in reality, this may lead to market fragmentation, with part of the market focusing on traditional NFTs and others pursuing new models of ERC-404. Such fragmentation may result in 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 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 ability of the Ethereum ecosystem to self-adjust, and this community-driven approach to asset management has established its user base. As long as technology and user experience continue to be optimized in the future, it is expected to build a complete ecological sector.
Tiny_spl
Tiny SPL represents a new approach within the Solana ecosystem to solving on-chain data storage cost challenges through the use of innovative state compression technology.
background
Solana’s rental mechanism
Solana implements a unique account model that includes a rent mechanism. Unlike Ethereum, which primarily charges transaction fees, Solana also imposes rental fees on accounts to store data on the blockchain. This rent is calculated based on the account’s token balance and is designed to ensure efficient use of storage resources. Accounts unable to pay rent may be removed, although accounts with balances exceeding two years' rent are exempt. As technology advances and storage costs decrease, rental costs are expected to decline, although fluctuations in SOL prices may affect users' actual cost burden.
How Tiny SPL operates
Tiny SPL emerged 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 associated rental costs, thanks to state compression. This approach significantly reduces on-chain storage requirements by utilizing Merkle trees to compress data verifiability into a single hash. This breakthrough has particular application in lowering the cost of minting NFTs on Solana by several orders of magnitude, as demonstrated by Helium Mobile, a project that minted nearly one million NFTs at a fraction of traditional costs.
The differences between Tiny SPL tokens and standard SPL tokens:
- No rent payment
By leveraging state compression, Tiny SPL tokens circumvent the need to pay rent, solving one of the major costs associated with token ownership on Solana. NFT section visibility: Unlike regular tokens that appear in wallet balances, Tiny SPL tokens are only visible in the NFT section, reflecting their unique storage and management method.
- Interactive Experience
Tiny SPL introduces a unique token management experience, including the process of 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
Deez Nutz serves as the guinea pig for the Tiny SPL protocol, providing 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 wish to tailor their asset holdings to their needs.
Key Features
- Split $NUTS
Holders can split their $NUTS tokens into smaller denominations, allowing for more granular control over their assets. This can be done either as an integer or as a decimal, with a minimum split of 1. This feature is particularly useful for users who wish to allocate their assets or manage them more efficiently.
- Merge $NUTS
Users can choose to consolidate their $NUTS balances, up to 50 token balances at a time. This streamlines users’ wallets and simplifies asset management. The process involves selecting the balances to be consolidated and confirming the transaction through their wallets.
- Exchange $NUTS
The platform provides an exchange function where users can exchange their $NUTS tokens for SOL (or vice versa), with the transaction limit set to the user’s highest combined token balance minus 1. This feature is suitable for users who wish to diversify their portfolio or adjust their holdings based on market dynamics.
Project performance
Source: Magic Eden, Dextools
The project's temporary performance has not been as good as expected. It has dropped about 50% from the issue price, and the market has yet to be accepted by the public.
Summarize
Tiny SPL is currently in the technical experimental phase, with its initial challenges around splitting and merging functionality having been resolved. The protocol’s ability to reduce storage costs while maintaining the security and decentralization of Solana’s base layer marks 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 require large-scale token issuance 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 protocol’s evolving use cases will further determine its place within Solana’s broader strategy of optimizing blockchain efficiency and accessibility.
Tiny SPL provides an alternative to account deletion by circumventing Solana’s rent payment requirements. The innovation of this mechanism is that it provides token holders with a way to store their tokens for almost free. However, this bypassing of the rent mechanism may be seen as a misinterpretation of the original design principles of the Solana ecosystem. The rent mechanism was established to ensure the effective use of resources and the sustainability of the system. The emergence of Tiny SPL may raise questions about the execution of this principle.
Asteroid
Asteroid is a groundbreaking protocol framework created on the Cosmos Hub through a collaboration between Delphi Labs and the Astroport Foundation. It differentiates itself by allowing anyone to permanently publish data on the blockchain, introducing a suite of tools including indexers, browsers, APIs, and specifications for Cosmos’ fungible tokens (CFT-20), as well as tokens Distribution, foundry tools and comprehensive software solutions. The introduction of $ROIDS as the first CFT-20 token highlights its innovative approach to tokenization and data imprinting 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 in-depth knowledge of smart contracts.
- meta-protocol framework
Asteroid operates as a metaprotocol framework, which means it provides a base layer upon which other protocols or applications can be built. This scalability is critical to fostering innovation and enabling diverse use cases within the Cosmos ecosystem.
- Memorize any content
The framework's ability to support arbitrary content imprinting is innovative in the market. It breaks down the barriers that typically require smart contract development, making it possible to publish multiple data types directly on the blockchain. This feature could significantly lower the barrier to entry for developers and creators looking to leverage blockchain technology.
CFT-20 Token Overview
Asteroid provides a new asset creation and distribution mechanism within the Cosmos ecosystem by introducing the CFT-20 token. Fungible tokens are essential for a wide range of applications, from financial instruments to digital collectibles, enhancing the utility and flexibility of the Cosmos Hub.
- 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 developers have the necessary resources to innovate and effectively expand the capabilities of the Cosmos Hub.
- Tokenized innovation
The introduction of CFT-20 tokens expands the utility and interoperability of digital assets within the Cosmos ecosystem.
- 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 one-stop inscription creation or Marketplace services. Although the track is not accepted by the mainstream, the project team is still actively building it.
Summarize
Asteroid’s simplified way of interacting with the blockchain, coupled with the innovative CFT-20 token standard, positions it as a catalyst for the future development of the Cosmos ecosystem. The scalability and inclusiveness of the framework can 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 that CFT-20 can bring the same effect to Cosmos.
Asteroid supports arbitrary content imprinting capabilities, 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 imprinting also brings data flooding and quality control problems. Without proper review and filtering mechanisms, the blockchain can 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:
- Asset flexibility and liquidity: The market requires more flexible asset management tools that can be adapted to a variety of financial and non-financial uses.
- Cost efficiency: As blockchain applications expand, reducing operating costs becomes an important need, whether through reducing transaction fees or storage costs.
- Participation of non-technical users: With the popularity of blockchain technology, simplifying technical complexity to attract the participation of non-technical users has become an important development direction.
In the long term, the adoption of innovations depends primarily on their ability to address 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 due to its emphasis on the participation of non-technical users and the concept of meta-protocol. This emphasis on inclusivity and ease of use may lead to faster market adoption and ecosystem growth. ERC-404 addresses the market’s need for complex asset management tools through its flexible asset ownership and liquidity enhancement capabilities. Although it faces some market confusion and security challenges, its potential market breadth cannot be ignored. Although TinySPL targets a specific problem (data storage cost) of a specific ecosystem (Solana), its impact may be more limited, especially as multi-chain and cross-chain operations become the norm.
About Bing Ventures
Bing Ventures is a global pioneer crypto investment fund headquartered in Singapore. It focuses on discovering cutting-edge innovative projects and entrepreneurs in the fields of Web3 and blockchain, and helps the implementation and development of emerging brands with its extensive industry contacts and deep industry resources. Fulfill the mission of “shaping a vibrant decentralized future through investment”.
We follow a value investment methodology based on pure fundamentals and are not limited to sectors. Our current investment portfolio covers many tracks such as DeFi, NFT, GameFi, DAO, infrastructure and Web3.
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