ERC-404 Standard

Definition ∞ The ERC-404 Standard is an experimental token standard on the Ethereum blockchain that combines characteristics of both ERC-20 fungible tokens and ERC-721 non-fungible tokens. This hybrid design allows a single asset to possess both fractional ownership capabilities and unique non-fungible attributes. It enables novel use cases where tokens can be simultaneously divisible and individually distinct. The standard facilitates liquidity for otherwise illiquid digital assets.
Context ∞ The ERC-404 standard represents a recent innovation sparking considerable interest and debate within the Ethereum ecosystem regarding its technical implications and potential applications. Discussions often concern its efficiency, security considerations, and how it compares to established token standards. A critical future development involves its formalization, potential revisions, and broader adoption across decentralized applications. This advances token functionality.