The new type of token behind the mad boys craze?
The recent Mad Lads craze has taken the NFT space by storm. From the outside, the collection of 10,000 Solana-based PFPs seems akin to the many generative avatar projects that came before it. However, there is one big difference between this new potential blue-chip project and others: executable NFTs.
An enigmatic new advent on the blockchain, executable NFTs – or xNFTs for short – come with the potential to completely rework the creator-collector ecosystem that Web3 has grown accustomed to in recent years. But how? Let’s explore.
What are xNFTs?
Sometimes referred to as the next generation of NFTs, xNFTs are essentially non-fungible tokens embedded with executable programming scripts.
And… what is an executable programming script? Good question. Similar to how you can click on an “.exe” file on your computer to launch a program or application (Ledger Live, Photoshop, Brick Breaker, etc.), xNFTs are imbued with similar functionality that allows them perform a specified task or set of tasks. This essentially makes them apps.
This is the main differentiating factor between NFTs and executable NFTs. Because the latter can run code inside them, unlike a regular NFT which is essentially a static blockchain token represented visually by a media file. This means that xNFTs have utility beyond that of a regular token, as they are mostly interactive.
How are xNFTs used?
Considering how new the technology is, there aren’t many robust use cases for xNFTs at the moment. However, in the future they can be used as direct portals to play a game, listen to music or even access a DeFi protocol. And users don’t need to connect their wallet to a third party to access this functionality; it is literally built directly into an xNFT – resembling the “double-click to play” mentality of common computer operating systems.
However, to access an xNFT’s functionality, users must use an xNFT wallet. And when it comes to xNFT wallets, Backpack is currently the end all be all.
— Mad Armani 🎒 (@armaniferrante) 20 June 2022
Created by Solana’s framework development company Coral, Backpack is an all-in-one wallet app designed to be the new open, programmable system for the Web3. Although it is a wallet, it is also the premier xNFT operating system. In short, backpack is a platform for xNFTS, and xNFTs can only achieve functionality when used inside the backpack.
This is in stark contrast to how the NFT ecosystem works today. Because again, instead of a collector needing to connect their wallet to a website to validate and use their NFTs (which can sometimes be a security risk), xNFT holders can directly access token-gated content through Backpack without being dependent on third-party software as an intermediary.
But wait, there’s more. The entire Backpack system is open source, meaning developers of all faiths and colors are welcome to experiment, collaborate, and innovate with Backpack.
“Imagine if you wanted to create your own token protocol without having to convince everyone to implement it,” Armani Ferrantefounder and CEO of Coral, wrote in a Twitter thread. “Like any other application operating system, [Backpack] has a set of developer frameworks and APIs associated with it, allowing anyone to build their own xNFT apps for any protocol on any blockchain – permissionless.”
Are xNFTs the future?
So, what does all this mean for the NFT ecosystem? For crazy boys? Are they xNFTs?
Well yes. Apart from being a collection of generative avatars, they are also executable NFTs, meaning they have additional functionality. While this functionality has yet to be revealed, we can look to use cases teased by Ferrante to hint at what’s to come.
“Imagine if you could manage your Mango margin accounts, bet DeGods or view your Magic Eden entries not in a web view, but natively in a single interface,” continued Ferrante in the Twitter thread. “[Backpack] is a home for everything. It’s an open, programmable system built for Web3.”
It is clear that interoperability is the ultimate goal of the xNFT ecosystem. This means that even Mad Lads will surely get functionality that transcends simple tradability or whitelist incentives. But the importance of Backpack and xNFTs goes far beyond Mad Lad’s tokenomics.
This is because what Coral is building has the potential to create a shift in how both Web3 creators and consumers operate. By promoting open source innovation, streamlining the user experience, encouraging community building and more, Backpack may very well usher in a new phase of NFT growth, all from Solana.
