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Divisible NFT DN404 Standard Launches to Rival ERC-404

February 13, 2024
in General
Divisible NFT DN404 Standard Launches to Rival ERC-404
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Divisible NFT standard DN404 has been launched on Ethereum a week after the launch of a similar standard known as ERC-404
DN404 developers taunt the standard as a superior version of ERC-404
The two standards strive to introduce natively fractionalized NFTs

A new token standard working to improve the divisibility of NFTs has been launched on the Ethereum blockchain barely a week after a similar standard was unveiled on the same blockchain. Dubbed DN404, its developers believe that it solves the inefficiencies of its predecessor, ERC-404. Although the two are unofficial Ethereum NFT standards, their functionalities may attract a huge following, as is the case with the Ordinals project on the Bitcoin network.

A Hybrid ERC-20/721

In an X (formerly Twitter) thread, DN404 pseudonymous developer, cygaar, described the standard as a “divisible NFT standard […] which aims to be a hybrid ERC20/721 token.”

Excited to launch the “Divisible NFT” standard (DN404) which aims to be a hybrid ERC20/721 token.

ERC404 took the crypto world by storm over the past few days, but it doesn’t follow existing standards, is inefficient, and breaks at certain edge cases.

Here’s how DN404 works 🧵: pic.twitter.com/3kj504Gb97

— cygaar (@0xCygaar) February 12, 2024

The developer noted that ERC-404, despite its popularity, suffers from various shortcomings like its failure to adhere to “existing standards.”

Explaining the difference between DN404 and ERC-404, he noted that the latter employs a single contract which makes it susceptible to exploits, while the former uses two contracts, a base ERC20 contract and a mirror ERC721 contract, making it more secure.

The premise of ERC404 was to create a single contract that can act as both a fungible and non-fungible token.

However, this can’t be done without introducing exploits and breaking standards.

Our approach instead uses two contracts – a “base” ERC20 with a “mirror” ERC721.

— cygaar (@0xCygaar) February 12, 2024

Cygaar said that with DN404, most of the action happens on the base contract, adding that items on this contract can be considrered “fractions of the NFTs.” According to the DN404 creators, moving or trading assets on the base contract leads to either minting or burning their duplicates in the mirror contract.

DEX-compartible NFTs

The developer disclosed that the new standard wants to natively bake fractionalization within NFTs and support trading on both centralized and decentralized NFT exchanges. 

Cygaar, however, warned the NFT community against being scammed, saying that they aren’t “selling tokens or a project to anyone,” and that projects making such allegations are scams.

Reminder: this is not a project.

We released open source code that other projects can use to build hybrid tokens. We are not selling tokens or a project to anyone, so stay wary of scams.

— cygaar (@0xCygaar) February 12, 2024

With the DN404 team confident that their standard has more features, it’s yet to be seen how ERC-404 developers will address their standard’s claimed weaknesses.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FullCrypto – https://fullycrypto.com/divisible-nft-dn404-standard-launches-to-rival-erc-404?utm_source=rss&utm_medium=rss&utm_campaign=divisible-nft-dn404-standard-launches-to-rival-erc-404

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