erc404

ERC-404 is a new and experimental token standard in the cryptocurrency. It blends characteristics of both ERC-20 & ERC-721 Token Standards. The blend also shape the characteristics of new product and enables features of both standards. ✴️ What Is ERC-404 ERC-20 is a standard used for fungible tokens like cryptocurrencies Example - ETH,LINK,MKR, etc and ERC-721 is used for non-fungible tokens (NFTs) Example- Ethermon, MyCrypto, Cryptodoggies, etc. The ERC-404 standard integrates these functionalities in a unified framework, allowing for new possibilities in token usage and flexibility, particularly in decentralized finance (DeFi) and NFTs.🔅 How Does ERC-404 Works?The easiest way is to describe it using an example. The first project to use the ERC-404 standard was Pandora, which has an issue of 10,000 tokens and 10,000 NFTs. Each holder of a fungible token also receives an NFT associated with the fungible token. Each time a user buys or sells $PANDORA, the NFT is minted or burned.So far, Pandora and other ERC-404 tokens have seen huge gains over the past few days and keep growing. It also fits nicely into the current narrative of meme tokens. ⚡ Pros and Cons of ERC-404🔹ERC-404 is designed to solve one of the key problems of NFTs, their liquidity, meaning it could be a game-changing solution for the NFT market. 🔸While the new token standard is attracting a lot of attention, it has one significant drawback: ERC-404 is unaudited, which means it may have significant vulnerabilities. Be careful and DYOR!🔆 Courtesy🔹Cryptorank🔸Bankless🔹The Block © This composition is not endorsed by any entity; the names mentioned are solely for informational purposes. By stating this, we absolve ourselves of any liability for losses incurred if you invest in this project after perusing our article. This article should be regarded as a source of information, not financial counsel. Please note that this disclaimer is intended to protect both the reader and the author.⚡ More Alpha, Join Us, Follow  Us, Share Us ⚡ @Techandtips123 #TrendingTopic