Jannat Ara

Ethereum’s Experimental ERC-404 Standard Sparks Competitor: DN-404

Overview: A new Ethereum-based cryptocurrency standard, ERC-404, emerged recently, aiming to combine cryptocurrency and non-fungible tokens (NFTs). However, concerns over gas optimization and transaction fees prompted the development of a competitor, DN-404, which addresses these issues by separating token and NFT elements into two distinct contracts.

Background: ERC-404 debuted with the release of Pandora, its first token, which experienced a remarkable surge of over 12,000% within a week before facing a significant downturn. The standard aimed to innovate fractionalized NFTs and enhance liquidity for digital collectibles, but concerns arose regarding gas optimization amidst rising Ethereum transaction fees.

DN-404: Developers introduced DN-404 as a solution to the inefficiencies observed in ERC-404. By segregating token and NFT functionalities into separate contracts, DN-404 reduces transaction costs by 20% compared to its predecessor. Leveraging the ERC-20 token code alongside a mirror ERC-721 structure for NFT features, DN-404 aims to provide improved gas efficiency and address concerns regarding the integrity of NFTs.

Developer Insights: One of the developers behind DN-404, known as Cygaar, emphasized that the standard is intended for protocols to implement rather than being a standalone project. The open-source GitHub repository for DN-404 is currently in its alpha stage and has yet to undergo auditing.

Conclusion: The emergence of DN-404 highlights the iterative nature of blockchain development, with developers responding to challenges and shortcomings in existing standards. As Ethereum’s ecosystem continues to evolve, the competition between standards like ERC-404 and DN-404 underscores the importance of innovation and adaptability within the cryptocurrency space.

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