Introduced by the Future Primitive team, the ERC-6551 standard proposes a method for binding smart contract accounts to each ERC-721 NFT. These accounts are called Token Bound Accounts (Token Bound Accounts, referred to as "TBA").

We believe ERC-6551 will be one of the most impactful innovations in Web3 for the following reasons:

1. It enables each ERC-721 NFT to own/hold any amount of any other token (ERC-20, ERC-721, ERC-1155, etc.).
2. It does not require any changes to existing NFTs or any new NFT contracts to deploy.
3. It "automatically" binds these accounts into all existing NFTs without requiring the NFT owner to perform any transactions.
4. It is virtually infinitely scalable.
5. It already supports account abstraction (ERC-4337).
6. It provides new use cases for NFT.
7. This is an important step in the evolution of NFTs. They will transform from simple PFPs to Tokenized Avatars (Tokenized Avatars).

***TBA is technically cool, but what can we actually do with it? ***

TBA has many use cases, but the most prominent ones are:

• NFT composability (NFT composability)
• On-chain reputation
• Game avatar inventories

NFT Composability

Composability is not a new concept in the NFT world, there have been an impressive number of composable NFTs and standards in the last few years. However, TBAs change the composability landscape for NFTs with one key difference - they don't require any changes to the existing ERC-721 standard.

A practical use case for composability is in logistics and manufacturing. As a simple example, imagine a car NFT with its own account that keeps records of information about insurance, registration data, tax data, manufacturing data, parts recalls, etc. While transferring the car NFT, we can also directly transfer the relevant data of the car.

Unlike previous composable NFTs, TBA can hold an almost unlimited number of assets, similar to a standard external account (EOA), and is almost infinitely scalable, which makes TBA extremely influential on NFT composability.

On-Chain Reputation** (On-Chain Reputation)**

Another compelling use case for TBA is in the field of on-chain reputation.

Let's consider the scenario of using NFT to measure loyalty. Using TBA, all contributions made by an individual to a DAO, organization, or similar entity can be tracked and recorded. It seamlessly tracks loyalty-related activity by sending the soul/token-bound NFT to the wallet associated with the loyalty NFT.

For example, say you're a big fan of a musician. You get an NFT album from this artist. For each concert you attend, you can redeem an attendance proof token, which will be stored in the TBA of the album NFT. This mechanism not only enables on-chain tracking and verification of loyalty, but also increases the value of the original album NFT over time. Artists can also reward loyal fans for attending each concert by simply tracking the contents of an NFT account.

Thanks to TBA, it is also possible to airdrop NFTs to existing NFT holders without knowing the wallet address. This functionality opens up new possibilities for cultivating brand loyalty and creating engaging experiences for users in a transparent and secure manner.

Game Character Inventory

Our personal favorite TBA use case is game character inventory.

When playing a game, there is a significant difference between the player and the character. Most players create many characters with unique attributes, skills, achievements, in-game reputation, etc. TBA enables each NFT to have its own character inventory.

Although Token Bound, the official team of ERC6551, is working with the market to facilitate the support of NFT and TBA, it may take time for the market to adapt and resolve the associated complexities.

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