In this standard, a non-fungible token stands as atomic existence and encourages layers of abstraction built on top of it. Ideal for representing concepts like rights, a form of abstract ownership. Such right can take the form of NFT options, oracle membership, virtual coupons, etc., and can then be made liquid because of this tokenization.
Non-fungible tokens are popularized by the ERC-721 NFT standard for representing "ownership over digital or physical assets". Over the course of development, reputable NFT projects are about crypto-assets, digital collectibles, etc. The proposed standard aims to single out a special type of NFTs that are ideal for representing abstract ownership such as rights. Examples include the right of making a function call to a smart contract, an NFT option that gives the owner the right, but not obligation, to purchase an ERC-721 NFT, and the prepaid membership (time-dependent right) of accessing to data feeds provided by oracles without having to pay the required token fees. An on-chain subscription business model can then be made available by this standard. The conceptual clarity of an NFT is hence improved by this standard.
The NFTs defined in the ERC-721 standard are already largely
accepted and known as representing ownership of digital assets, and the NFTs by
this standard aim to be accepted and known as representing abstract ownership.
This is achieved by allowing and encouraging layers of abstract utilities built
on top of them. Ownership of such NFTs is equivalent with having the rights to
perform functions assigned to such tokens. Transfer of such rights is also made
easier because of this tokenization. To further distinguish this standard
from ERC-721, data fields and functions related to URI are
excluded.
There is no further backwards compatibility required.
https://github.com/simontianx/ERC3754
The security is enhanced from ERC721, given tokens are minted without having to
provide URIs. Errors in dealing with URIs can be avoided.
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