What is ERC-404? Is it the next Buzz in Crypto?

From the past week, you would have heard about token price shooting if the project was working on ERC-404. In this article let’s dig into what is ERC-404, its advantages and its market potential.

History of ERC-404:

ERC-404 was initially developed by a developer on GitHub. You can find the source code of the smart contracts here – https://github.com/0xacme/ERC404

This was eventually extended and further developed by Pandora.
Pandora’s Links –

Pandora Twitter – https://twitter.com/Pandora_ERC404

Pandora Telegram – https://t.me/pandora_404

What is ERC-404?

ERC-404 is the combination of ERC-721 & ERC-20. The purpose is to bridge the gap between ERC-20 (Fungible Tokens) and ERC-721 (NFTs – Non-Fungible Tokens)

Previously, if a project needed to tokenize or fractionalize an ERC-721 asset the developer would have to create a locker smart contract and mint ERC-20 after locking the ERC-721. it aims to solve this by directly locking and minting ERC-20 instead of additional contracts and steps thereby minimizing the work, efforts and gas fees likewise.

ERC-404 is not officially approved by Ethereum yet. The proposal for it has not been proposed yet with the EIP – Ethereum Improvement Proposal

Who is Pandora?

Pandora aims to be the first project with ERC-404 where they are launching 10,000 ERC-20 Tokens and 10,000 NFTs together. As you buy 1 Pandora Token you get 1 NFT together. The NFT will be minted with unique rarity.

Pandora Stats:

Pandora Token Smart Contract – 0x9e9fbde7c7a83c43913bddc8779158f1368f0413

Link to Buy Pandora token on Uniswap with USDT – Buy Now

Advantages:

1. Reduces Gas Cost involving multiple smart contracts for locking and minting erc-20.
2. Reduces complexity by having multiple layers for NTFs, Fungible Tokens etc.
3. Simple and easy on development and integration.

Disadvantages:

1. ERC-404 is not an approved EIP by Ethereum.
2. It is not a security-audited smart contract. No leading audit firm like Certik or CypherShield has certified it. Generally, if audit firms do not approve then there can be chances of issues or scamming-related functions on the smart contract.
3. Additionally, Using the hype there are multiple scam projects in the market mentioning that they are working on ERC-404.

I came across a new advanced standard introduced in the market by a set of open-source Ethereum developers called DN-404. It is considered an advanced and more gas-optimized version of ERC-404 and it is gaining traction now in the market. I would simultaneously recommend you to go thorough the differences between DN-404 vs ERC-404 firstly before choosing the best standard for your project. You can already see the buzz going around it in X(Twitter).

Also, get in touch with me if you are looking for ERC-404 Smart Contract Development. Reach out to my email – yokesh@blockchainx.tech

BlockchainX is an enterprise web3 development agency focusing on Tokens, NFTs, Custom Dapps, and Layer 1 Blockchain consulting and development with a Team size of 100+ located in the USA & India.