A novel Ethereum Improvement Proposal (EIP) has recently caught the attention of both developers and members of the NFT community. This proposal, known as ERC-6150, introduces an innovative NFT concept that holds potential for various applications through its hierarchical structure. In this article, we will delve into the essence of this proposal and explore some of the new technologies that can be leveraged with Hierarchical NFTs.
Before delving into the technical details, we encourage readers to review the complete text of the proposal here →
https://eips.ethereum.org/EIPS/eip-6150
The crux of ERC-6150 entails the creation of NFTs with a root file that can encompass "children" NFTs within its structure. These child NFTs are effectively organized into a single cohesive unit, which can be conveniently shared or traded as a package.
Several intriguing possibilities emerge from this hierarchical structure, particularly in the domains of NFT Music Albums, Decentralized Autonomous Organizations (DAOs), and Code Files. Let's explore these applications in more depth.
Music Albums:
The music industry has long relied on album sales as a significant source of artists' income and exposure. However, on-chain sales of albums have faced challenges due to the limitations of existing NFT tokens. Traditional NFTs necessitate artists to mint or create ERC1155 contracts for selling individual songs or groups of songs independently. With the introduction of hierarchical NFTs, musicians can bundle multiple songs under a single parent NFT, constituting an entire album. As a result, artists can receive royalty payments based on the number of songs included in the album, offering a more efficient and seamless approach to monetizing their musical creations on the blockchain.
DAOs and Organizational Roles:
Decentralized Autonomous Organizations (DAOs) have gained prominence as a new model for decentralized decision-making and community governance. These organizations usually function around designated wallet addresses and predefined roles assigned to members. Token-based voting, often using ERC20 tokens, has been a common method for decision-making within DAOs. However, this approach can lead to organizational complexities and token inflation. ERC-6150 opens up possibilities for constructing hierarchy tokens that encode roles and responsibilities directly within the NFT contract. This enables smoother exchange and transfer of these tokens, providing an opportunity for new members to engage with the decentralized business structure efficiently.
Tokenized Code Repositories:
Another exciting prospect lies in the realm of File NFTs, made feasible through ERC-6150. This simple yet powerful concept presents a fantastic opportunity for freelance developers to monetize their skills in innovative ways. By leveraging the hierarchical structure, developers can combine various files and code snippets into a single bundled NFT. This paves the way for tokenized code repositories, where open-source developers can receive well-deserved contributions for their valuable work.
Conclusion:
The growing momentum behind ERC-6150 is well-justified, as it opens up new avenues for creators to bring their work onto the blockchain in a more comprehensive and viable manner. This has the potential to lead to further decentralization of creative industries and businesses, fostering a more inclusive and dynamic ecosystem. At Gruve, we are committed to exploring these opportunities extensively, and we encourage other developers to do the same. Embracing on-chain work and organizational structures is undoubtedly a positive step towards the advancement of the industry as a whole.
Art Astra
