EIP-6551 and NFTs that own other NFTs

Transcript

GM GM welcome to web3 Academy your one trusted source to capitalize on the next big phase of the internet don't get caught in a hype cycle I'm Kyle it's not Jaybird today but I'm Kyle redhead and I'm not joined by my co-host instead Raul our boy from Webster Academy is taking over and that's because Jay is having the baby friends family Webster Academy is minting a new human and I will let Jay introduce all that more in another episode so I don't want to take his thunder away but that's why Jay's not with us him and Sam are healthy and so is the baby and we're so excited but that's why Jay's not going to be here today but Jay myself Sam the new baby Raul we all believe that web 3 is going

to change the world and that's why we're covering a path for doers to confidently build and invest in web 3. today we are going to be talking about eip6551 which is nfts inside of nfts you may have heard of this and it sounds a little crazy and a little bit weird we did do a write-up about the center newsletter if you're there so you would already be in the know but we're going to dive deeper into this and explain why putting tokens inside of nfts is a really big deal and what this means for the space but as I said we're going to do this a little bit differently usually we record this specifically for the podcast on our own behind the scenes but today we decided to record this live in a Twitter space and we plan to do this

on a weekly basis why well this allows us to engage more with the community and allow you the listeners to give feedback to ask questions and do that while we're recording the podcast so the sound will be a little bit different well we're going to work on that and see if we can get better quality but we hope that this is pretty good as is so far but you'll notice that this allows us to bring experts from the web through Community into these conversations more frequently throughout the show so anyway we hope that you enjoy this new Twitter space which we're going to be doing and recording at 12 p.m Eastern Standard Time every single Monday and then of course as usual this will go on the podcast for everyone to listen to like you are right now but friends thank you

so much I hope you enjoy this one and let us know there is a poll if you're listening on Spotify there's a poll which you can listen to or sorry you can answer there please answer that to let us know if you like this type of content of course it's our first time so we will improve it as we go if you're watching on YouTube just throw us in the comments and finally join the Discord and feel free to reach out there for more feedback that would be super helpful now before we get into this episode let's take a quick second to hear from our sponsors the future of social media is here and that future lives in web 3 on top of lens protocol web 2 social platforms are broken and right for disruption you see the epicenter of social media is the creators and yet

they are the most neglected web 2 platforms like Facebook Tick Tock and Instagram are all essentially robbing creators of their worth creators are a new type of entrepreneur forming new types of businesses yet with web 2 platforms creators don't own their content to their profiles and that's their product and business instead they are tied to the platforms they choose to create on well just like how crypto is freeing us from Banks web3 is freeing us from these centralized platforms on lens protocol creators own their content own their profile and even their social graphing followers in the form of nfts this allows you to move freely from one social application to another with your content profile and followers moving along with you lens protocol enables

self-saverty for your social graph and interoperability across the internet at web Theory Academy we believe this is the future of Social and that's why we've partnered with lens to ensure that the path of social media is heading in the right direction visit lens.xyz to learn more today what's up y'all doers we're seeing signs on chain of the very early stages of a crypto Bull Run there's a big wave coming and we want to make sure you're on it Now's the Time to capitalize on the opportunity how you ask by starting to practice consistent dollar cost average buys into strong network-based assets like ethereum and Bitcoin however when buying please make sure to use a trusted exchange our newest sponsor by

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but hopefully those listening in here will allow us to come up and chat as well so if you're dying to to help explain erp6551 to the world we will let some people come up and share as well this will go on as a podcast so we usually do a web three debates we call it well this isn't a debate today but we're going to start recording him here in Twitter instead of just for the podcast so that way we can engage here with the community and do more Twitter spaces and then also throw that up on Spotify and iTunes afterwards so that's the plan we'll see how it goes we've never done it before and then I guess to add a little bit further here Jay will not be joining because Jay actually just had a baby so Chase is currently in the hospital he did have the baby boy by the

way we're all just had it I just saw a picture and the ability is healthy saying is healthy and everyone's just tired the mint was successful no issues Tech worked so all as well can we see them on chain the baby is not on chain just yet but one day soon he's not gonna make it come on yeah okay so why don't we just start and we'll see if others join as we go but I'm not sure what kind of intro we need for the podcast should we do that one later bro we should do one later I don't think I'm prepared GM yeah let's get started yeah let's get started so today we're talking about eip6551 it's also known as tokenbound accounts so for those of you here on our

Twitter spaces you're probably heard this term on Twitter a lot lately it basically came up at Denver and we're here to explain what's going on and how you can benefit from this Tech so Kyle why don't you start us off by giving out an explanation on this new tech yeah so I'm just going to keep it super simple I mean I went to Academy we tried to stay out of the weeds of the tech and I'm sure there's other people that are either in here or are explaining different ways in more in depth in terms of how the technology actually works what I want to focus this conversation on after it's explaining what it is is more what does this mean for us like how can we use this how does this change the way that we we create businesses or the way that we just like implement this

Tech inside of our businesses essentially what eip6551 is it is exactly what it sounds like is nfts inside of nfts really it's tokens inside out of T so you can have erc20s like fungible tokens or you can have ERC 721 so like an entity inside of your nft you could think of it like your NFC acting like a wallet which is why you call it token bound accounts it's not actually a wallet you don't like get a new seed phrase or something like that so it's not a wallet per se but it does essentially allow you to store or interact with other tokens inside of a token that's kind of the basic explanation of it now why would you want to do this and why is this even a thing

like what's the point and there's many ways to explain it but I think the easiest explanation to this is think of it like a folder on the internet right so an nft is just a rapper for any media file right whether it's jpeg whether that is a MP3 an mp4 or really anything else that is what an mft actually is and just like in on our computers today or on our phones we have folders for jpegs right if you are trying to sort your photos you took on a vacation typically you don't have them spread out everywhere you put them inside of a folder that you've titled you know X vacation right same with when you are I don't know interacting with a game somewhere and you're buying things inside of I don't know let's say it's a

game inside of Facebook or a game inside of whatever they're all stored inside that game the kind of weird thing about web3 is like if you use one wallet for all games all apps all photos all music it's just all in one wallet which gets a little I mean if you use this stuff enough it gets very very unorganized and it's hard to see what's actually going on inside of someone's wallet even yourself if you're trying to use your wall it gets very difficult because everything is everywhere because everything is a token and they're all destroyed in your wallet so it would be like having all of our files all in your like desktop and just like there's no organization to any of it right that's where this will go if we don't have some sort of way to organize and so what this does is basically allows us to

organizing whatever we want think of a couple easy use cases to wrap your header on this right now everyone's collecting music nft this is kind of a big thing that everyone's doing and maybe you're curating a list for those music entities well instead of just having 500 music nfts all in the same wallet and beside your pictures and your jpegs and your membership passes in your uniswap tokens instead what you can do is have a album or a playlist right as an nft you can title it something have some design art for and that's an nft and then certain music can go inside of that folder right so that's an easy way to sort of just wrap your head around why this might make sense but there's many other ways let's think gaming for a second we always talk about that and this is kind of the most popular one I

think that people have explained for this is if you are you know you have an avatar or something inside of a game and you're in there and you're applying it and you're learning different skins or you're earning different weapons or whatever that might be again you might want to store that or somehow accompany that with that Avatar right and so now you can just store it right inside of there and if you're over to sell that Avatar or someone bought it off of you those weapons or those skins could go along with it and it just makes that experience much easier one to see so kind of the ux has improved but then also to sell or buy it makes it much easier because it's all in kind of one transaction as well so there's just a couple quick ideas to help you wrap your

head around it and then I'll throw it back to Euro if you want to add anything or maybe ask the next question to go with that otherwise we can go into more ideas of how we might use this because I think that's the most interesting aspect of this all yeah I think one thing to add is that this protocol is already existing so if you want to use this you can it's already live it was an EIP that was proposed it was accepted and it's fully live you don't need to sign into anything or opt into anything so if you see anything sketchy just consign with those transactions Royal does that mean all nfts currently can work as this or do you need to create the nft in this sort of standard any nft that you have in your wallet can be used as this I

used my the nft that I minted from coinbase the stand with crypto NXT I sent an nft inside that nft so it works interesting very cool yep so yeah why don't you uh go into more practical examples of how this could change the way we like interact with nsts and with the internet overall yeah so a couple other interesting ones that I've seen and those that are in here listening if you guys have other ones feel free to I think you can wave your hand in Twitter spaces we'd love to hear some examples you've seen as we build this out the way I see this going is basically everything gets tokenized in the future and everything I mean like our homes will be tokenized and by our home what I mean is like the ownership contract for the home and I think like the ownership for our

car will be tokenized and that make allows us to Value things and sell things much easier right we can put it on the marketplace immediately instead of having to get someone else to do it you don't need lawyers Etc now now what comes from that can be really cool is there's also Dynamic nfts which means it can update nfts based off things that you do we talked about this before another episode about cars and how for example if you get in an accident and you need Repose you can like let's say you get that credentialized into sold about nft that sticks with your wallets or sticks with that specific nft of your car so that you can see that there is a damage on this day and here's what was done to fix it and that sort of like is an entity that sticks with that too to

be like a stamp of approval or whatever and every time you get any work done that happens another thing you think of with cars think of like Tesla for example which is basically a computer on Wheels you can upgrade this car anytime you want and it has subscriptions so you can buy like a membership package to get the like faster package for the Tesla you can do it for like other there's a million different things you can do in a Tesla think of it like an app store almost for your car that's what Tesla's doing and so if you have all these subscriptions in these memberships well it'd be really weird to sell your car and then also just still have those memberships paying for them and not give those to the other person and so if you think about once we tokenize the car we

tokenize the memberships those memberships can live inside the ownership of that car that nft and when you sell the car those memberships go along with it and now the person who bought your car and the rights to it now has the rights over those memberships so they can cancel them they can continue they can do whatever they want so you can see how this will play out in that sense same with the home obviously there's many things that go along with your home whether it be insurance or Renovations or whatever else again subscriptions play a role there whether it's like your smartphone or your smart technology inside of a home all of that can be held inside of that so those are some additional things the main thing that Raul and I were actually talking about that I thought was very interesting is like again why do we

really want to do this and I think what's cool is your wallet is probably going to have many identities for example you might be a gamer and so you might have an avatar that you use for your game I talked with the use case of that but then you also might be an art collector you might be a bit of a d-gen that like plays around with trading and maybe you have I don't know a community that watches what you do trading and so you might have a bit of a different identity for each of those right you might have a different image to represent each one of those call them businesses you have a gamer business let's say you play axi Infinity you have a Trader business and an art collecting business it's very common to have multiple businesses in today's world and so now what you can do is basically host

those businesses with a specific identity and that could be a pfp it can be whatever and you can go and accumulate things inside of that like sub business that's inside of your wallet so at the top of it you could think of this like a pyramid of businesses so you have Kyle reidhead.e and then underneath that I have three other ens domains right one is like gamer.e art collector.e and whatever.e right those are nfts and then within those can be all the things that I earn or the things I want to show off or the things that I whatever I'm doing can be underneath that and they can be branded by those so what that means is for someone to see what that gamer has done right what are they doing instead of going to copyrighted.eth and seeing everything in my wallet which is just

going to get confusing for you you now just go to the wallet address or the contract address of the nft and you can see specifically what's happening for that one part of the business the part that you care about rather than seeing my entire wallet right so it allows you to start like organizing your identities or the things that you're doing on the internet which many of us all do many different things some of us are on Reddit talking about tech some of us are on Twitter talking about investing right some of us have a business that we're running digitally so we're always doing many different things this allows us to have multiple identities and then organize those identities for everything that you're doing across the internet and I think that is super cool yeah I think a lot of people think of this

concept and when they first understand it they're like oh these are just useless folders for my nfts like pfb nfts which is kind of useless if you think about it that way but like when you think about it further there's a lot of use cases that can come out of this I know a Community member he proposed that he was airdropping like a chapter in a book and then from every week or he would make people do certain quests and then airdrop a certain chapters in that book to tell a story like over time right the possibilities are endless it's just like up to you what you can imagine to do with this well you think about one other thing from the business perspective one of the cool things about tokens is that as a business owner and having an audience that's on chain I can

go and look and see what other communities they're a part of what interests they have what they're doing based off what to get on their wallet but what's even cool about this is if someone has multiple identities on the internet which many of us do and the one that interacting with my business is their gaming one for example then the other ones are not really as relevant and so instead I can go and look at what interests they have specifically in their gaming side and their identity right and again that can only be done to this unless they have multiple walls that would just be again I wouldn't know who that is I wouldn't know what other wallets are associated with that person so it allows me to get more granular more specific to the data points that I want to see of that person and their

interest so I think there's actually going to be some really cool data collection stuff with this though I don't know exactly how that's going to work yet there's probably no tools that are actually doing this but I can see that being like an extra layer of data analytics which will help you understand your customer and they're like that point of your customer more specifically so I think that could be really cool as well yeah I think we're super early so we still need to see apps being built by developers which I think it's a perfect time to ask these questions I got this question from a Community member before this live and I think we're going to open this space as well for any questions but I just want to ask this question if I'm a developer and I want to build with eip6551 what should I

start with and like what should I keep in mind that's the question that I got asked yeah I mean I get this question a lot of people who want to use tokens but they're like well what do I use it for and I want to launch and then T but what should I launch I want to launch a token but what should I launch and I mean the easiest answer to this is like again the token is not your business you don't launch enough he just launch an OT you launch.t because it solves a problem for you right it solves the business problem for you or it works as a marketing tool for you so what's the use case why do you want to watch uh eip6551 type token right is it because you're building something like I had a Community member who told me that they are doing they are

selling parking spaces in Australia and they are tokenizing those parking spaces and they were already building this out and then when this came along they were like we quickly adapted our Tech to include this because what if you want to own multiple parking spaces now you can put them all under one and sell them together and I was like there you go perfect here's a solution that this technology and the CIP does for you that just makes your business better and better ux so again you just got to be thinking like what is the token that you're creating and how can like what problem is it solving for you and does having it as an eip6501 does incorporating that into it make your life easier or make the business better or make it a better product for the user that's where you got to be thinking of

so how does it solve a problem for an individual that's how every business works so don't just use a token because you want to use a token use it because it actually makes the experience better or makes the value more or it unlocks something for for the individual right there's a great advice and I think it's important to emphasize on that okay so if anyone has any questions we can take any so we can just raise your hands and I can just invite you to speak but in the meantime until we get any questions oh sorry Kyle did you want to say yeah I had a question someone because we wrote a newsletter on this as well and I and I think the guy's name was Rob he asked on Twitter as well and he just asked the security risks of this does this add any

additional risk which I just wanted to answer that as well I think that's quite important from a technical standpoint I honestly don't I don't know a ton about it so I have no idea in terms of how the code works and also just remember this is something complete new and so likely there are going to be exploits and there are going to be problems there always are every time there's any new tech right that's just how the stuff works and not even just in crypto I mean all new tech AI arrests are coming with it right robotics risks are coming with it and so what do you do when you invent something brand new you experiment with it and you find the problems with it and so you know thankfully in this space everything's for the most part is open source so when a problem happens with

one company or one use case everyone gets to learn from it and can adapt right away that's one of the amazing things about web3 and so whatever you're doing with this you want to experiment with it first I would say don't put high value stuff in this just yet because we just don't know right you don't know what you don't know and um so just why add additional risk just to play around experiment do this with low value or no value things just to play around with it first one of the things I could think of that could go wrong here is one of the common phishing attacks right is I mean phishing attack could just like exploit your entire wall and take everything or sometimes you might sign and just take one token now if that token is holding 10 tokens right your board at Yacht Club is also holding

your mutant Yacht Club and all your eight coin tokens and whatever else if they take that one board at Yacht Club they now take all those tokens associated with it so I mean the same risk is there in terms of like it didn't make stealing your board AP Yacht Club any easier but it made the value that goes with that you know larger and so just be careful on that right it's possible to steal tokens and so we always say in this space like you want to diversify right you want to have multiple wallets that hold you know different parts of your tokens and your value so it's not all in one spot it's not one Honeypot as you call it so I would say Don't just for the fun of it put all of your you know most high valuable assets into one just because

you're like I'm gonna make an art gallery unless you're actually making art gallery that requires them to be in an eip6551 scenario then maybe just don't do that right now because you just want to be as secure and safe as possible we just don't know what can happen so I would just say be extremely careful I don't know in terms of like the technology and the code like I have no idea but anytime new something new comes out you just you got to be careful first right and I think it's important to understand that these nxts act like wallets but they're not like individual wallets they're controlled by one main wallet so if you think that you're diversifying Away by storing into these different wallets into like these nfts you're still like exposing yourself to the risk that you get your main wall attacked and then you lose everything

else with it so yeah this is a super important so I got a question where you said that you use the Saturday can you just walk us through what that was like I'm sure there's many listening that are like hey I want to do this how do I even like send something into an nft and like then can I look at it where do I do that what was your experience like yeah the main hub for this to use the tvas talk about accounts is to go to tokenbound.org where you can like search for any nfts that are existing I tried with my stand with crypto nft which was a pre-made so I just took that address I put it on tokenbound I searched for it I got the wallet address that was generated for that nft in particular and then I sent an nft to that wallet and

then to see that nft inside that nft I had to still go to token tokenbound.orgbound.org where you can like search for any nfts that are existing I tried with my stand with crypto nft which is was a freemate so I just took that address I put it on tokenbound I searched for it I got the wallet address that was generated for that nft in particular and then I sent an nft to that wallet and then to see that nft inside that nft I had to still go to token tokenbound.org to know you know visualize this right I couldn't see that like openc or something yeah right no that's the thing like these apps the interfaces will have to integrate this

with time which I think they will but for now you can do this only on tokenbound right so now you gotta think the whole ecosystem's got to update right we've got to build new marketplaces new use cases that can like allow for this to actually work and function so you imagine this is going to change marketplaces because now they're going to show not just an nft what's inside of it and now are things priced differently can you start to you know bid on things like just inside of it and take like half of them instead of all of them do you got to take the whole thing like so there's going to be a lot of new scenarios that come out here which would be quite quite interesting I think yeah right now a board ape can hold I don't know a moon bird and the price does not

reflect that because no one knows that unless you go to token or it's token bound and then you search for that particular border to see what it holds I can't value the whole folder it can just value the one token at the moment yeah exactly and that's another problem like once you're gonna be able to Value like that nft based on what it holds inside it it's gonna be like more difficult to sell and if you like and if these are eLiquid as they are like I mean for pfps obviously and like having things inside it will be just even harder because it will be more expensive to to sell it right I have one question before I asked that I just saw Brad from Lance just joined in I don't know if you have time to talk at all if you know anything about eip6551 but wondering how this if

this impacts web3 social at all so I can just see like lens protocol everything is everything's nft all your followers all of your content is empty and so I can see this being a way where you can start to curate content whether that be like I don't know quotes or images like kind of like Pinterest right Pinterest is all like folders of content I can see that being a thing Brad left so I guess he can't he can't add any insight here but I could see that oh he's back I could also see like follower lists you think of Twitter we create lists all top you know web3 marketers or whatever so you can see what they're all saying and then you can share those lists with others right now right now we do this in the Twitter world but if you did it on

lens for example you might be able to have all of those accounts which are nfts inside of that list and then you could sell that list or share that list and once someone takes that list now all of a sudden they're automatically following all these accounts so I could see it in organizing in Social as well hey guys I will continue to join this I didn't get proper like approvals or anything I just wanted to pop in and leave a little Trail here go check out sapiens nft number zero check out what it's holding think about what this means for pfps to be able to have a social presence that's all I'll say can you say uh what the sapiens nft project sapiens and astute project number zero that's cool for those that

are listening to the podcast this is gonna go on the podcast we'll put the link to it in the show notes and you can take a look close letter in here in the Twitter space go have a look if someone happens to check it out you can let us know here Raul how does this work for soul bound nfts I imagine I can't well maybe I can I don't know why I would but put something into a sold out on a t or vice versa can I put a soul bound nft into an lft and then if I sold that nft to someone else would those Soul bound ones go with it have you seen anything about that or does anyone know what ERC standard is that for Soul Bond is it still uh the same as normal nfts uh no I don't think so it is something different

I can't remember what it is 721 no so it is the same because our nft like Academy is sold on anything because it's non-transferable but it's still a seven to anyone okay so maybe you can yeah I tried to send some tokens to that but I had some struggles I I don't know it was just not supporting those tokens it should be support those tokens but yeah I'm not entirely sure how that works but I'm 100 sure that you won't be able to like get rid of your solva nft if it's coded in so that's my presumption for now but I think if you mint like if you put the sold on a t directly into an nft address so a token bound account it should stick to that one I would assume right which would make sense and would

be very nice in the for the Tesla example where I said you might in the future we'll probably buy our cars the ownership of them will be as an nft rather than a piece of paper that you sign and if you get like upgrades to it or you you get a car accident you need to get it fixed there will be like sort of credentialized repairs like a proof of fixing whatever that's going to need to be sold down and it's going to need to be sold bound to the ownership of that car right because if I can just trade that and send it somewhere else well then I can just hide and get back and I had a repair so yeah I don't know if the attack works well yeah in terms of the example that I gave of how I could see this all working I think we

will need it to work that way if it's possible I don't know I'm sure it is but we'll see yeah that's very interesting saying Raul any other questions if anyone in here I see a bunch of people have joined in if you guys have questions feel free to ask me you've got five more minutes before we end this so if anyone has any either questions or thoughts or feedback maybe you guys have played around with it would love to hear what you guys are seeing or thinking you can just raise your hand if not I think we're close to wrapping up bro unless there's anything else on your agenda no I think we're good awesome well everyone thanks so much for joining we're going to be at I'm actually flying to Lisbon in an hour that's why I have to leave here because we're going to pick web 3

conference in Lisbon if anyone here is going I see a couple people in here that I know are going for sure we are hosting an event on June 8th and we'll have a big meet up for all web 3 people at what's it called a place called beers in LX Factory so make sure you come meet up there and grab a drink and then the conference is on the 9th so hopefully if you're there we'll see you we'd love to meet up otherwise friends thanks so much for joining we're going to be doing this every Monday at 12 o'clock talking about the timely events happening in the space and we'll be interviewing each other and slash bringing on other people so make sure to continue to join and we'll see you here a space Also if you missed the beginning you can check this out on

Spotify or apple podcast it will go live tomorrow and you'll get the full review of this although I think it sticks around in Twitter as well so lots of options but anyway friends thanks so much and everyone have a wonderful day thank you for listening to Webster Academy your one trusted source to capitalize on the next big phase of the internet if you enjoyed this episode please share it and subscribe or follow so that you don't miss the next one while you're at it there's a link in the description for a free newsletter where we provide timely and relevant web3 insights so you can confidently build and invest in web 3. make sure to subscribe today one final note this podcast is for educational purposes only and nothing we say is financial advice crypto and web three are risky and you

should never invest more than you're willing to lose thank you friends and see you in the next one