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NFT 
DAO Learn about ERC-998
ERC-998, known as the token-bound account standard, is a supplement to the Ethereum blockchain. It was created to address the limitation of ERC-721 tokens, which means that ERC-721 tokens cannot act as owners of other assets on the chain or perform the same actions as Ethereum accounts. The standard allows NFT to operate as its own smart contract account, thereby aiming to expand its functionality and value.
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For example, if the Profile Picture (PFP) NFT collection implements the ERC-998 token standard, the NFT can host its own native cryptocurrency or other derivative NFT. This earned the ERC-998 the nickname \"backpack\" wallet.
Benefits of ERC-998
The introduction of ERC-998 brings several benefits. It aims to improve the functionality of NFT. Tokin-bound accounts (TBA) can interact with other smart contracts and decentralized applications (dApps), opening up unlimited possibilities for NFT.
ERC-998 is designed to enhance interoperability. TBA is compatible with other Ethereum standards, which makes NFT easier to use on different platforms.
ERC-998 is designed to enhance user friendliness. It makes it easier for users to manage their NFTs and can be accessed from any web3 wallet.
Limitations of ERC-998
Although ERC-998 has potential, it also has limitations. The high Gas fees associated with ERC-998 may increase, especially during times of network congestion. This may make using the ERC-998 NFT expensive.
While this new token standard is exciting, it must be noted that not all platforms or systems are compatible with it. This may limit the use and adoption of ERC-998.
ERC-998 In Action
Some Web3 projects have adopted the ERC-998 standard. For example, a decentralized social media platform announced its latest update to allow ERC-998-enabled tokens to host their own profiles on the website.
Fashion designer Jeff Staple\'s Web3 studio has implemented ERC-998 into its NFT series, allowing holders to own external NFTs through their token-bound accounts.
To date, nearly 3,775 ERC-998-based accounts have been created, demonstrating the growing interest and adoption of this new standard.
The Future of ERC-998
The Future of ERC-998 aims to unlock powerful new capabilities for blockchain-based digital assets. It is designed to play a role in the development of NFT, aiming to enhance its capabilities beyond still images.
With the ability to interact with other smart contracts and dApps, NFT can become more dynamic and interactive, potentially enabling new use cases in the metaverse, games, and DAOs. However, the usefulness of ERC-998 may depend on its adoption by developers and its compatibility with existing systems.
