Crypto is evolving before our eyes.
One trend I’ve been following is the increasing number of token standards. Last week there was news of ERC-404, which was the first time I heard about it and wondered if there was more I missed.
First, lets define ERC: (ChatGPT 4)
ERC stands for Ethereum Request for Comments. It is a formal process of proposing improvements to the Ethereum network, involving a series of technical documents that detail the proposed standards for Ethereum's platform, including protocols, contract standards like ERC-20 (for tokens), and more. These proposals are authored by Ethereum community members and are subject to discussion, critique, and revision before they can be adopted as a standard.
What is the history of ERCs?
The history of ERCs is deeply tied to the development and evolution of the Ethereum ecosystem. The process is modeled after the Internet Engineering Task Force’s (IETF) Request for Comments (RFCs), which have been used for decades to propose and manage standards for the Internet. In a similar vein, ERCs are intended to foster collaborative development and ensure that the Ethereum platform remains open and standardized, preventing fragmentation and encouraging interoperability among applications, tokens, and services.
The first ERC to gain major attention and adoption was ERC-20, proposed in 2015 by Fabian Vogelsteller and Vitalik Buterin. It became the de facto standard for creating fungible tokens on the Ethereum blockchain, such as currencies, voting tokens, or points in a loyalty program. This standardization has been critical in enabling the explosive growth of Initial Coin Offerings (ICOs), decentralized finance (DeFi) applications, and more, by providing a common framework that ensures compatibility across the Ethereum ecosystem.
Why are these standards important?
ERCs play a crucial role in Ethereum's ongoing development, serving as a foundational mechanism for proposing, debating, and implementing changes and improvements to the platform. This open and collaborative approach has helped Ethereum maintain its position as a leading blockchain for smart contracts and decentralized applications.
Ethereum is where all the new technologies & ideas emerge in crypto. Many other blockchains add “but cheaper” and boom there is a sales pitch!
So what is ERC 404?
ERC 404 has a unique ID (like 721) but can be divided up (like 20). Enabling a seamless exchange of both fungible and non-fungible assets within the same token contract. ERC-404 can have a significant impact on DeFi and NFT ecosystems. In DeFi, integration with ERC 404 enhances liquidity pools, DEXs, and AMMs by fractionalizing unique assets enabling higher capital efficiency and broader accessibility to previously liquid assets. In the realm of NFTs, ERC404 opens up new possibilities to dynamic NFTs in gaming, digital art, and virtual worlds with customizable fungible and nonfungible traits.
It is exciting to watch this development. Enjoy it. At some point, crypto will get tamed like the Wild West. Only 14M people hold Ethereum. It might be cliche but we’re still early.
New standards unlock new use cases and/or increased efficiency. This will increase the demand for Ether. Dencun is expected around March 13th, making L2s significantly cheaper. This will increase the demand for Ether. A spot ethereum ETF is coming in May. This will increase the demand for Ether. While it will eventually end badly, restaking has taken off in extreme fashion. This will increase the demand for Ether.
Last time I checked, ethereum was deflationary and the CFTC considers Ether a commodity. What happens when there is extreme supply and demand inbalances with commodities?
History Doesn't Repeat Itself, but It Often Rhymes - Mark Twain
Look at the oil crisis of the 70’s. Oil went from $2 to $30 in a decade. I’d take a 10x on Ether from here. I believe that almost any public consensus is wrong in investing. Current Ether consensus is between $8 - $12k. I definitely believe it will go above $8k and public consensus is usually wrong so surprise to the upside. Why $30k Ether? Because oil went from $2 to $30 in the 70’s. Ether is going from $2k to $30k.
Can it really be this easy? Are very few people actually paying attention and able to understand what is about to happen? Or am I [Redacted]
And BTC price?
$69k (nice)
On 4/20 (legalize da herb!)
At the halving (less supply)
Don’t fade the universe (ayyyy)
As always, Make your own decisions ANON. Crypto is the Wild West. Opportunity comes with risk. I'm a believer but the most important thing is to understand your own situation and make choices that you're comfortable with. No one on the internet has the answer for you but hopefully reading posts like this can help light the way.
Cheers,
Whitetail
