xNFTs Crucial for Empowering Decentralized EVM Services, says Smart Layer’s Chief Strategy Officer Mathew Sweezey
In Brief
Smart Layer Network’s chief strategy officer Mathew Sweezey shared how ERC-5169-enabled xNFTs can transform digital and physical experiences.
Decentralized services network Smart Layer Network (SLN) recently surpassed 3 million token and 10 million blockchain transactions. Additionally, the growth of SLN has been significant, starting from its proof-of-concept, Smart Cats, which saw 2.62 million transactions on Polygon in the past 7 days.
Moreover, this transaction volume surpassed other popular platforms like Base and Optimism during the same period. Smart Cats held the top position among Polygon’s dApps for the last 60 days.
Smart Layer has also introduced the ERC404 optimization implementation, a merger of ERC-5169 and TokenScript into ERC404 tokens. This enhancement simplifies ERC-20 and ERC-721 token transfers for holders, providing increased visibility and control. Additionally, it facilitates advanced functionalities like ERC404 membership and accounts, offering versatility in tokenization.
@SmartLayer has published an improved #ERC404 implementation which enhances security and UX while extending use cases beyond collectibles.
— Smart Layer (@SmartLayer) February 12, 2024
The Improvement is based on ERC404 V2 and incorporates ERC-5169 and TokenScript into ERC404 tokens as the token frontend.
It will give…
In a conversation with Metaverse Post – Mathew Sweezey, Chief Strategy Officer at Smart Token Labs, where he’s building Smart Layer Network into the infrastructure for executable tokens on EVM-compatible chains, said that as token utility explodes in coming years, every EVM chain will require a decentralized services network to host and process large volumes of off-chain data, logic and function.
He asserts this is being enabled by ERC-5169 and the concept of executable NFTs (xNFTs).
“ERC-5169 enables executable tokens (xNFTs) that integrate on-chain and off-chain data, facilitating decentralized services for hosting and processing off-chain data and logic. Smart Cats, a game on Polygon, exemplifies this revolution by embedding gameplay directly into tokens, enhancing utility and value while offering a seamless user experience,” Sweezey told Metaverse Post.
He added that executable tokens, enabled by protocols like ERC-5169, are revolutionizing digital and physical experiences by facilitating the integration of smart contracts across various web scenarios. They offer tokenized representations of rights and services, enabling limitless possibilities beyond the confines of centralized systems. The real transformation lies in embedding utility into tokens, making them not just assets but self-contained applications.
By marrying on-chain and off-chain logic, the company aims to enhance the token’s capacity for real-world application, making it a part of everyday life. Tokens become tools for direct communication, providing comprehensive price discovery, and embodying their own interactive experiences.
Executable Tokens Can Revolutionize Digital and Physical Interactions
Executable tokens operate independently, carrying their data and instructions, which can enhance user-centric interactions across digital and physical realms. They could streamline experiences like travel by integrating various services, hinting at a future where users control digital interactions, potentially augmented by AI.
“Executable tokens can automate processes and enhance user experiences across industries by managing interactions based on embedded data and instructions,” Sweezey told Metaverse Post. “For example, car tokens could streamline ownership processes like unlocking and tracking, while tokens in other industries could streamline supply chains, enhance identity verification, automate royalty payments, and improve tracking in pharmaceuticals.”
It is vital to understand that in a token-centric ecosystem, the elimination of intermediaries and the integration of transactions offer significant advantages.
Talking about the aspect, Sweezey explained “To overcome privacy, regulatory compliance, and scalability challenges, smart tokens distribute their logic between user agents and server-side logic. That creates new opportunities to program tokens in a way that both preserves privacy and optimizes functionality, even at scale.”
“Smart Layer Network ensures operational integrity through continuous uptime, redundancy, and load balancing, while also managing the lifecycle of smart tokens and maintaining user privacy and security.”
Additionally, executable tokens could reshape financial markets by introducing new asset classes and investment strategies focused on intrinsic utility rather than speculative value. Tokenizing traditional assets could offer benefits like real-time asset management, enhanced liquidity, and compliance with regulations, democratizing access to investments.
According to Sweezey, executable tokens can help usher in a new era of interactive experiences.
“Executable tokens become self-referential. In other words, they embed their own data, user interface, and guidelines for interaction and programming within the token itself. This allows it to directly interface with any element of its surroundings, effectively bridging digital and physical realms,” he told Metaverse Post.
“For example, you already have brands like BMW considering digital twins of your vehicle, so you can bring your actual IRL vehicle into virtual worlds. That expands the definition of ownership and layers of new opportunities for interactions within digital experiences.”
Hence, there is no denying the fact that xNFTs could anchor digital assets to physical counterparts, enriching user experiences with dynamic content creation and real-world interactions.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
