Exploring the Potential of ERC-20 Tokens in Gaming, AI, and Digital IDs

In the previous bear market cycle, the question on many people’s minds was whether blockchain technology was useful at all. However, the power of Uniswap and the growth of decentralized finance (DeFi) provided a clear answer to this question. As we enter a new market cycle, the question of the usefulness of cryptocurrency and blockchain technology is once again at the forefront of discussions.

Amelie Hua, a freelance writer and independent researcher, suggests that the answer to this question will not come from new blockchains or scaling layers, but rather from applications developed under new standards and protocols. The innovation seen in recent years has shown that old protocols have not brought any surprises, leading to the introduction of new ERC-721, ERC-1155, and ERC-998 token standards that may open up new applications and bring users to the blockchain for non-investment and non-financial needs.

ERC-998 is a token standard introduced on the Ethereum mainnet in May 2021 that assigns Ethereum accounts to non-fungible tokens (NFTs). These token-bound accounts allow NFTs to own assets and interact with applications, creating a vast space for innovation. Hua explores the concept of “non-human account entities” within this new standard, focusing on three potential applications: gaming, artificial intelligence (AI), and digital IDs.

In the gaming industry, the integration of real players and non-playable characters (NPCs) could be revolutionized by ERC-998 tokens. Hua uses the example of the game “Kenshi,” where players can hire NPCs to escort caravans between cities. By creating entities that can switch between real player and NPC modes, ERC-998 tokens could enhance the gaming experience and provide new opportunities for players.

In the realm of AI, Hua suggests that ERC-998 tokens could provide a platform for digital entities to have accounts and manage their assets. This could lead to greater equality between AI and humans, as digital entities would have a secure and decentralized space to exist.

Finally, the concept of creating a digital version of oneself through data collection and AI training is explored. This digital avatar could potentially have persistence and even a physical robotic body, raising questions about the equality of digital entities compared to humans.

Overall, the introduction of new token standards like ERC-998 opens up a world of possibilities for blockchain technology and cryptocurrency. By exploring innovative applications in gaming, AI, and digital identities, the potential for blockchain to revolutionize various industries becomes increasingly apparent.