February 23rd, 2024

ERC-404: Fad or Game-Changer?

Ethereum is a platform that enables developers to create decentralized applications (DApps) using smart contracts, which are self-executing code that can enforce rules and logic. One of the most popular types of DApps on Ethereum are those that deal with tokens, which are digital assets that can represent anything from currencies to collectibles.

There are different standards for creating tokens on Ethereum, such as ERC-20 for fungible tokens and ERC-721 for non-fungible tokens (NFTs). Fungible tokens are interchangeable and divisible, meaning that one token of the same type equals another. For example, one ether (ETH) is equal to another ether. NFTs are unique and indivisible, meaning that each token has its own identity and characteristics. For example, one CryptoKitty is different from another CryptoKitty.

However, there are some limitations and challenges with these existing standards. For instance, ERC-20 tokens lack NFTs’ metadata and customization features, while ERC-721 tokens suffer from low liquidity and high transaction costs due to their rarity and indivisibility. Moreover, there is no easy way to bridge the gap between fungible and non-fungible tokens or create hybrid tokens with both properties.

A New Standard

This is where ERC-404 comes in. This is an unofficial token standard proposed by the Pandora team, a group of developers who launched an NFT collection based on this standard. ERC-404 aims to combine the best of both worlds by treating tokens as fungible or non-fungible, depending on the context and the user’s preference. It also enables unique burn and mint mechanics, creating interesting dynamics and incentives for token holders.

One of the main features of ERC-404 is that it allows tokens to be fractionalized and merged. This means a user can buy or sell a fraction of a token instead of buying or selling the whole token. For example, if a user owns one Pandora token, an ERC-404 token, they can sell 0.1 of it to another user and keep the remaining 0.9. The 0.1 token will still have the same metadata and characteristics as the original token but not the corresponding NFT attached to it. The NFT will only be minted when the user owns a full token or merges their fractions to form a full token.

This feature can create more liquidity and accessibility for NFTs, as users can trade them in smaller units at lower prices. It can also create more diversity and variety for fungible tokens, as users can customize them with different metadata and attributes. For example, a user can create a token representing their favorite sports team and add their logo, colors, and stats. They can then trade it with other fans or use it to access exclusive content or rewards.

Another feature of ERC-404 is that it allows tokens to be burned and minted in different ways. This means a user can destroy their token and create a new one with different properties or create a new one from scratch. For example, if a user owns a Pandora token representing a dragon, they can burn it and mint a new one representing a unicorn. They can also mint a new token without burning an existing one, as long as they pay a fee to the Pandora contract.

This feature can create more innovation and experimentation for token creation, as users can explore different possibilities and combinations. It can also create more value and scarcity for tokens, as users can create unique and rare tokens with high demand and low supply. Another example is a user can create a token that represents a celebrity and add their signature, photo, and voice to it. They can then sell it to their fans or use it to access exclusive content or rewards.

Opening Pandora’s NFT

ERC-404 is a novel and exciting token standard that can potentially revolutionize Ethereum’s token economy. It can create more flexibility and functionality for both fungible and non-fungible tokens, and enable new use cases and applications for them. It can also create more opportunities and challenges for token creators and users, as they can experiment with different token designs and dynamics.

Remember that this is also a very experimental and risky token standard that the Ethereum community has not officially approved or adopted. As mentioned in my blog, it has not been thoroughly tested or audited, and it may have security vulnerabilities or technical issues. It may also face legal or regulatory hurdles, as it may violate intellectual property rights or other laws. Moreover, it may not be compatible or interoperable with other token standards or platforms and may face competition or opposition from other token projects.

Pandora is the first and most prominent token that uses ERC-404, and it has been experiencing a massive surge in popularity and price in the past few days. CoinMarketcap has a separate section called ERC-404 on its main page, with other trending categories such as Solana, Gaming, and DePin.

Pandora is a collection of 404 unique NFTs that represent different mythical creatures, such as dragons, unicorns, and phoenixes. Each Pandora token can be fractionalized and merged and can be burned and minted to create new NFTs. Pandora also has a governance system that allows token holders to vote on the future development and direction of the project.

It has attracted much attention and hype from the crypto community as it showcases the potential and innovation of ERC-404. It has also attracted a lot of speculation and investment from the crypto market, as it has seen a huge increase in its value and volume. According to CoinGecko, Pandora has a market cap of over $175 million and a price of over $16,000 per token as of February 7, 2024. It has also seen a growth of over 2000% in the past week, making it one of the best-performing tokens in the crypto space.

However, Pandora is also a volatile and speculative token that has not proven its long-term viability or sustainability. It has not established a clear vision or roadmap or delivered any concrete products or services. It has also faced much criticism and skepticism from the crypto community, as it has been accused of being a scam, a Ponzi scheme, or a copycat of other NFT projects. It has also faced much competition and pressure from other token projects, especially those that use official or more established token standards.

In conclusion, ERC-404 and Pandora are fascinating and controversial token projects that have generated a lot of buzz and debate in the crypto world. They have both demonstrated the power and potential of token innovation and experimentation and exposed token adoption and regulation risks and challenges. They have created much value and opportunity for token creators and users. Still, they have also created a lot of uncertainty and speculation for token investors and traders. They have both been bullish and excited in the short term but also uncertain and unproven in the long term.

My opinion on ERC-404 and Pandora is that they are worth watching and learning from but worth being cautious and critical of. I think they are both game-changers in the token space and both fads in the token market at this point in time. So, do you think it is a game-changer or a fad?

Source: https://www.blockhead.co/2024/02/17/erc-404-a-game-changer-or-a-fad/

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

j j j

February 19th, 2024

BRC-420: A Game Changer For The NFT Market And Web3

Non-fungible tokens (NFTs) are unique digital assets that represent ownership and authenticity of various forms of content, such as art, music, games, and collectibles. NFTs have exploded in popularity in the past few years, especially on the Ethereum blockchain, where platforms like OpenSea, Rarible, and SuperRare have enabled creators and collectors to buy, sell, and trade NFTs with ease. However, Ethereum is not the only blockchain that supports NFTs. In fact, one of the oldest and most secure blockchains, Bitcoin, has also been home to a vibrant NFT ecosystem since 2018, thanks to the innovation of Bitcoin Ordinals.

Bitcoin Ordinals is a protocol that allows anyone to create and transfer NFTs on the Bitcoin blockchain, using a standard called BRC-20. BRC-20 is similar to ERC-20, the most widely used token standard on Ethereum, but with some key differences. For example, BRC-20 tokens are not smart contracts, but rather simple data structures that are embedded in Bitcoin transactions. This means that BRC-20 tokens are more lightweight, secure, and interoperable than ERC-20 tokens, as they inherit the properties and benefits of the Bitcoin network. Moreover, BRC-20 tokens can be easily integrated with existing Bitcoin wallets and services, without requiring any additional software or infrastructure.

However, BRC-20 is not without its limitations. One of the main challenges is that it does not support metadata, which is essential for NFTs. Metadata is the information that describes the attributes and characteristics of an NFT, such as its name, description, image, creator, and provenance. Without metadata, they are essentially indistinguishable from each other, and rely on external sources to provide context and meaning. This makes BRC-20 tokens less expressive, discoverable, and valuable than their Ethereum counterparts.

This is where BRC-420 comes in. BRC-420 is a new protocol that extends BRC-20 with metadata capabilities, enabling the creation of rich and diverse NFTs on Bitcoin. It was announced in September 2023, at the inaugural Ordinals Summit in Singapore, by Domo, the creator of the BRC-20 protocol. This protocol is inspired by ERC-721, the most popular NFT standard on Ethereum, but with some novel features and improvements. It consists of two parts: Metaverse Standards and Inscription Royalties.

Metaverse Standards are a set of open-source formats and specifications that define how metadata is stored and accessed. This standard supports various types of content, such as game items, multimedia, and art, and ensure that they are compatible and interoperable across different platforms and applications. It also leverage decentralized storage solutions, such as IPFS and Arweave, to ensure that metadata is persistent and censorship-resistant. This means that BRC-420 tokens are not dependent on any centralized server or authority, and can exist independently on the Bitcoin blockchain.

Inscription Royalties are a mechanism that allows creators to receive a percentage of the secondary sales of their BRC-420 tokens. They are embedded in the metadata, and are enforced by the marketplaces and platforms that support BRC-420. They are optional and customizable, meaning that creators can choose whether to enable them or not, and how much to charge. Inscription Royalties are designed to foster sustainability and reward long-term vision in the NFT space, by incentivizing creators to produce high-quality and original content, and by giving them a fair share of the value they generate.

In my humble opinion, BRC-420 is a game changer for the NFT market and Web3, as it brings the power and potential of NFTs to the Bitcoin blockchain. It combines the best of both worlds: the security, scalability, and simplicity of Bitcoin, and the expressiveness, diversity, and creativity of NFTs. It also opens up new possibilities and opportunities for creators and collectors, as well as for developers and entrepreneurs, who can build and innovate on top of BRC-420. It also enhances the user experience and adoption of NFTs, as it lowers the barriers to entry and reduces the costs and complexities associated with NFTs on other blockchains.

This is not a short-term fad, but rather a long-term vision for the future of the web. They are part of the broader movement of Web3, which aims to create a more decentralized, open, and fair internet, where users have more control and ownership over their data and content. It is aligned with the ethos and values of Web3, as it empowers users to create, share, and monetize their own NFTs, without relying on any intermediary or middleman. It is also compatible and complementary with other Web3 technologies and protocols, such as DeFi, DAOs, and DIDs, creating a rich and vibrant ecosystem of decentralized applications and services.

It is still in its early stages of development and adoption, and faces many challenges and uncertainties. For example, they need to overcome the technical and regulatory hurdles that Bitcoin faces, such as scalability, privacy, and compliance. This new protocol also needs to gain more awareness and support from the Bitcoin and NFT communities, as well as from the wider public and mainstream media. It also needs to prove its value proposition and differentiation from other NFT standards and platforms, and to demonstrate its use cases and benefits for various industries and sectors.

However, BRC-420 also has many advantages and opportunities, as it leverages the strength and reputation of Bitcoin, the most established and trusted blockchain in the world. It also benefits from the innovation and collaboration of the Ordinals Protocol, the leading project and community behind Bitcoin Ordinals. It also has the potential to attract and inspire new and existing users and creators, who are looking for a more accessible, affordable, and authentic way to participate in the NFT market and Web3.

To conclude, BRC-420 is a promising and exciting protocol that aims to revolutionize the NFT market and Web3, by bringing them to the Bitcoin blockchain. It is a win-win solution for all stakeholders involved, as it offers more freedom, choice, and value for users, creators, and developers. BRC-420 is not a hype or a bubble, but a reality and a trend, that will shape and define the future of the web. It is here to stay, and we should expect to see more developments and achievements in the coming months and years.

Source: https://www.benzinga.com/24/02/37076928/brc-420-a-game-changer-for-the-nft-market-and-web3

Anndy Lian

www.anndy.com

j j j

February 4th, 2024

Harvest Fund’s Spot Bitcoin ETF Application: A Game-Changer for Hong Kong’s Crypto Landscape

In a groundbreaking move that could reshape Hong Kong’s financial landscape, Harvest Fund Management has officially submitted the first-ever application for a spot Bitcoin ETF to the Hong Kong Securities and Futures Commission (SFC) on January 26. This development comes hot on the heels of the recent approval of similar ETFs by the US Securities and Exchange Commission (SEC) and marks a pivotal moment for the city’s growing interest in cryptocurrencies.

The SFC has expressed a keen interest in expediting the approval process for Hong Kong’s inaugural spot Bitcoin ETF. Plans are underway to list it on the Hong Kong Stock Exchange shortly after the Chinese New Year in February. This rapid development could set the stage for multiple institutions to enter the market, aligning with the US model where ETF sizes grew rapidly under the influence of key financial players.

While Harvest Fund is the first to apply, several existing crypto companies that launched futures-based ETFs in Hong Kong are expected to follow suit. Samsung Asset Management, known for launching the Samsung Bitcoin Futures ETF in 2023, has expressed openness to exploring a spot ETF. Other financial firms such as Venture Smart Financial Holdings have shown interest in applying for a spot crypto ETF too.

Moreover, Harvest Fund’s ETF might distinguish itself from its US counterparts. There are indications that it could allow not only traditional fiat currency subscriptions but also direct Bitcoin subscriptions. This novel approach could provide investors in the region with a distinctive and flexible investment option.

Implications for Hong Kong’s Financial Landscape

The recent developments in Hong Kong are not surprising given the city’s crypto-ready stance. Hong Kong has been a frontrunner in embracing digital assets, evidenced by its eight-month-old rulebook about digital assets, aimed at protecting investors while encouraging innovation. This forward-thinking approach has positioned Hong Kong as an attractive destination for crypto-related ventures.

The introduction of a spot Bitcoin ETF is bound to have a profound impact on Hong Kong’s financial sector, providing investors with an accessible and regulated gateway to the world of cryptocurrencies. It aligns with the city’s goal to establish itself as a digital-asset hub, fostering innovation while ensuring investor protection.

Growing Acceptance of Crypto in Hong Kong

The submission by Harvest Fund signals a remarkable shift in the perception and acceptance of cryptocurrencies within mainstream financial markets. However, this acceptance is not limited to ETFs. The Hong Kong Monetary Authority (HKMA) has been in discussions with companies like Harvest Global Investments, RD Technologies, and Venture Smart Financial Holdings regarding stablecoin trials within regulatory sandboxes. These developments underline Hong Kong’s commitment to fostering innovation and facilitating the integration of digital assets into its financial ecosystem.

Impact on Investment Opportunities

The potential approval of Harvest Fund’s ETF could open the floodgates for a diverse range of investors, especially those who are traditionally cautious due to the perceived complexity and risks associated with the crypto market. The potential approval aligns with a global trend where institutional investors are increasingly exploring cryptocurrency as an alternative investment, particularly in the wake of traditional market challenges.

Anndy Lian, an intergovernmental blockchain advisor, emphasizes the global context, pointing out that the Chinese stock market had a lackluster performance in 2023. The increasing interest in crypto alternatives is viewed as a positive development for the crypto industry. Harvest Fund, ranking as China’s sixth-largest public fund manager, filing for a Bitcoin ETF could pave the way for more Chinese capital to flow into the crypto market.

Global Impacts

Global Crypto Adoption

The developments of the crypto landscape in Hong Kong are likely to influence other nations in the integration of crypto into traditional financial systems. The approval of a spot Bitcoin ETF in Hong Kong could encourage regulatory bodies in other countries to review their own stance about cryptocurrencies and provide a clearer regulatory framework for digital assets. Hong Kong’s regulatory approach to the spot Bitcoin ETF approval may serve as a blueprint for other regions. Regulators in various jurisdictions are likely to closely observe how Hong Kong balances investor protection with fostering innovation. The approval could set a standard for regulatory frameworks, providing clarity and encouraging other countries to follow suit.

Global Investor Confidence

Furthermore, the potential approval of a spot Bitcoin ETF in Hong Kong is poised to attract investors, especially institutional ones, on a global scale. Hong Kong’s embrace of a spot Bitcoin ETF could instill a sense of confidence in investors worldwide. The move signifies a departure from the skepticism that has surrounded cryptocurrencies in some traditional financial circles. As confidence grows, more investors, both retail and institutional, may be inclined to allocate a portion of their portfolios to digital assets. That’s why investors, both in Asia and beyond, are closely monitoring Hong Kong’s stance on cryptocurrency investment.

Increased Market Capitalization of Cryptocurrencies

It’s also worth mentioning that the approval of a spot Bitcoin ETF in Hong Kong could contribute significantly to the overall market capitalization of cryptocurrencies. As institutional investors gain easier access to Bitcoin through ETFs, a surge in demand is likely, driving up the price of the digital asset. This increased valuation directly contributes to the broader market capitalization of cryptocurrencies.

Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

Source: https://www.bitget.com/en-GB/academy/harvest-fund-filed-the-first-spot-btc-etf-in-hong-kong