Does designing a non-tradable token work?

Tokens on Ethereum are all transferable and tradable. Is it useful to design a non-tradable token?

Half a month ago, Vitalik proposed a soul token, and the properties of this soul token are similar to this non-tradable token.

Therefore, can the design of the token attributes be extended to one more level, or can it represent more actual assets, and can more innovations be realized on the blockchain?

So let’s take a look at this proposal: EIP4671 ​​non-tradable token NTT

specific description:

NTT essentially stands for personal property (material or non-material) such as college diplomas, online training certificates, government issued document IDs, driver’s licenses, visas, etc.), badges, labels, etc.

As the name suggests, NTT is not meant to be traded or sold, has no monetary value, and is only used as proof of ownership.

The certificates issued by the blockchain have all made their own smart contracts with different implementations. But diplomas, food labels or driver’s licenses are just a subset of the general type of token: non-tradable tokens.

By providing a common interface for such tokens, EIP4671 ​​allows for the development of more applications and positions blockchain technology as the standard gateway for verifying personal property.

A single NTT contract is seen as a badge represented by an authority. For example, an NTT contract for an MIT diploma, an NTT contract for a driver’s license, etc.

An address may hold multiple indexed NTT tokens. The authority providing the certificate can invalidate the certificate. But you cannot delete your tokens. The issuer of the token may be someone other than the contract creator.

NTT has an interface that allows adding metadata such as ERC721 linked to each token. And there is an interface for standardized token minting delegation.

It can be seen that compared with ERC20 tokens and ERC721 NFTs, NTT is defined by other tokens except for the strict requirements of non-trading. And if the definition of NTT function, for NFT can also be achieved through smart contracts.

And let’s look at Vitalik’s soul token, its core is to create a non-tradable token, excluding the financial nature of the token, it also mentioned that it may be more suitable to find more suitable people with governance rights, which is also to let The web3 world is not defined as “money oriented”.

From the perspective of the two tokens of NTT and Soul Token, the emergence of NTT seems to have a unique necessity, but from a functional point of view, the function of NTT may be too simple.

In other words, its separate function definition is not easy to distinguish it from other tokens. Because the non-tradable function is not defined in the token standard, it can be designed in the token issuance contract or business contract, that is, the stop transaction transfer function.

And more importantly, what is defined in ERC-4671 goes beyond what a standardized Solidity interface can guarantee. So a possible future direction is to standardize only “non-tradable tokens” as defined in the “Specifications” section.

And this is for use in extension logic. Some developers added that, in the end, it is hoped that the machine can rely on a token interface that will not change, that is, each implementer of ERC4671 can copy the compatible behavior from the interface definition or usefulness.

So, to define non-tradable properties through contracts, and to use a new token contract to create new non-tradable tokens, which would developers or users prefer?

The answer may lie in the difficulty of application brought about by the market demand for non-tradable tokens.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/does-designing-a-non-tradable-token-work/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-05-30 23:43
Next 2022-05-30 23:46

Related articles