NFT as an account (NFTAA) #2396
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fix table, delete eth addr
Add 0 requirements to milestones 2 and 3
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@Noc2 thank you for your feedback. Our application has been modified and default deliverables 0a-0d have been added to milestones 2 and 3. The point about the article in milestone 3 has been modified from 3a to 0e to make it consistent with the templates. We believe that our application now complies with all the necessary formalities. |
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Thank you for the application and the long wait, @Roman-24.
This looks like an interesting idea. However, I'm a bit wary of another NFT pallet. We have supported several NFT implementations, each with their own twist, but few have actually been integrated into parachains or seen much adoption. Can you elaborate what your intention is here? From the looks of it, this is more of an "applied research" exercise than anything.
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@semuelle Thank you for your feedback. Our goal is to expand the boundaries of how web3 uses NFTs today. It's an extension of how current NFTs are used, adding a whole new set of capabilities. Another feature addresses the problem of current account illiquidity. If you want to change the owner of an account (or, for example, a locked staking), there is no secure way to do it (except by sharing private keys (unsecure thing)). In our proposal, we are primarily focusing on the use case within staking, but there are several other use cases, which we have addressed in the "Business Overview" subsection. The implementation of this idea makes sense and is supported by the fact that there is a similar proposal for Ethereum, which we have discussed in the "Differences and Distinctions (NFTAA vs. EIP-6551)" paragraph. As mentioned in the proposal, we have already conducted research on this topic, along with some prototypes. Therefore, we now want to move towards a real implementation that will provide value to real users. |
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we now want to move towards a real implementation that will provide value to real users.
Thanks for the clarification, @Roman-24. My question was more geared towards understanding whether you are planning to deploy this yourself or if you have parachain teams interested in it. But either way, it looks like an interesting project to me, so I'm giving my approval and will share it with the rest of the committee.
In the meantime, could you fill out the KYB form (assuming you are applying as a company, otherwise please use this form)?
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We have completed the KYB and therefore verification is in process. We are glad you like our idea and thank you for your support @semuelle. We will definitely communicate with the parachains, we believe we have a good network for that. |
| Our motivation for creating this project stems from the desire to address the inherent limitations and inefficiencies | ||
| associated with traditional staking methods. | ||
| Issues such as the illiquidity of staked assets and the complexities involved in transferring ownership pose significant | ||
| challenges. | ||
| By utilizing NFTs as accounts, we aim to provide a more secure and flexible staking solution, enhancing user control and | ||
| ownership. | ||
| This innovative approach opens new avenues for business opportunities and applications in DeFi | ||
| and enterprise blockchain solutions, underscoring our commitment to advancing blockchain technology and its | ||
| applications. |
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In what way is your solution superior to existing liquid staking solutions?
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It offers a different approach and provides an alternative option. At no point do we claim that it is superior or inferior to conventional liquid staking solutions. While our NFT proxy accounts enable us to address more than just the illiquidity of staked assets (e.g. digital assets management, company relations management), unlike traditional liquid staking derivatives, we present it as a complementary solution.
| Most Substrate pallets are designed based on a single account architecture, aligning with the NFTAA philosophy and | ||
| facilitating smooth integration with existing infrastructure. | ||
| By treating NFTAAs as conventional accounts, we can easily leverage the existing infrastructure for seamless | ||
| communication. |
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I agree with this vision and think it is desirable.
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We're glad you see it the same way.
| Additionally, NFTAAs can function as asset owners or participate in multi-signature schemes, further | ||
| enhancing their utility and security. |
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How is the ability to participate in multi-sig schemes enhancing their security? Doesn't make sense to me as you will still have a regular account as the underlying owner.
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We see this as an opportunity for the security of multi-sig schemes so that NFTAA can change the owner. If we have an ordinary account with a leaked PK there is nothing we can do about it. If we have an NFTAA and the owner of such an account leaks PK it can change the owner (i.e. PK) tied to the NFTAA and thus protect the multi-sig (assuming it makes it before the accountant does). But we acknowledge that this may be controversial and we would probably just write utility instead of utility and security :)
| The second approach involves using smart contracts. For this proposal, we prefer the pallet approach due to its | ||
| integration capabilities and performance benefits. |
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According to my understanding you are forced to set up this solution on a pallet level to integrate this solution with other pallets. This wouldn't work this smart contracts. Especially not now while Kusama and Polkadot don't support smart contracts yet. So sounds like the right decision.
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We are glad that you agree with our decision of tech details.
According to our information there are some possibilities to do smart contracts, but we think it's only possible on some parachains (https://wiki.polkadot.network/docs/build-smart-contracts).
Anyway, if there will be NFTAA pallet in the future it will be possible to add chain extensions and bring this functionality to smart contract layer.
| Attributes are crucial for enterprise use cases, allowing NFTAAs to be marked as entities such as companies or departments | ||
| within a corporate structure. |
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From our point of view, this is an opportunity to differentiate between already existing unique NFTs inside one company. To better manage and govern the orgs represented by NFTAAs or to add additional information to the NFT that is needed to implement the usecase we are writing about.
| Regarding security, there are at least two differences between NFTAA and TBA. The first is the possibility of generating the address of TBA sooner without having the deployed contract (as the create2 function for creating contracts is deterministic, i.e., you can calculate the future contract address). | ||
| In this case, if the upcoming smart contract is badly developed (does not contain an execute function for byte calls to other contracts) or is not upgradeable, it can happen that assets or liquidity sent to the TBA will not be withdrawable and become locked forever (even the NFT bounded in TBA can be sent by a mistake (if not safeguarded) to the address of TBA. Therefore you lock yourself from it). | ||
| The problem is that TBA uses only the address of any contract you want in the registry contract and does not look for any details on how the contract looks or if it is already deployed. In our case, the account form is pre-defined in the factory pallet, and even after deployment, we guarantee upgradeability as it is a proxy account. | ||
| The second security issue is potential fraud, which is [described in the EIP 6551 specification](https://eips.ethereum.org/EIPS/eip-6551\#fraud-prevention) that you withdraw assets from the TBA and at the same time sell the NFT to someone who thought that they would also have the assets in the TBA. In our case, we provide the security measures for not withdrawing the assets from the NFTAA while also selling the NFT, which is bound to the NFTAA. |
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Will these security measures be included in your currently developed pallet? I don't see it in the milestones.
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We will try to address this problem within existing features, but at this point we cannot exclude the possibility that this mechanism may need to be improved later.
| Functionalities from pallet_nfts: | ||
| - pallet::dispatchables::burn | ||
| - pallet::dispatchables::buy_item | ||
| - pallet::dispatchables::clear_attribute | ||
| - pallet::dispatchables::clear_collection_metadata | ||
| - pallet::dispatchables::clear_metadata | ||
| - pallet::dispatchables::create | ||
| - pallet::dispatchables::destroy | ||
| - pallet::dispatchables::lock_collection | ||
| - pallet::dispatchables::lock_item_properties | ||
| - pallet::dispatchables::lock_item_transfer | ||
| - pallet::dispatchables::mint | ||
| - pallet::dispatchables::redeposit | ||
| - pallet::dispatchables::set_attribute | ||
| - pallet::dispatchables::set_collection_max_supply | ||
| - pallet::dispatchables::set_collection_metadata | ||
| - pallet::dispatchables::set_metadata | ||
| - pallet::dispatchables::set_price | ||
| - pallet::dispatchables::set_team | ||
| - pallet::dispatchables::transfer | ||
| - pallet::dispatchables::transfer_ownership | ||
| - pallet::dispatchables::unlock_item_transfer | ||
| - pallet::dispatchables::update_mint_settings |
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What do you mean by "wrap these functionalities in our pallet"? So will your pallet be tightly coupled with pallet nfts?
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Yes, in order not to re-do already made and to ensure compatibility we want to use the NFT pallet as a dependency. We are ready to maintain compatibility in future.
| | Number | Deliverable | Specification | | ||
| |-------:|-------------------------|------------------------------------------------------------------------------------------------------------------------------------| | ||
| | **0a.** | License | MIT | | ||
| | **0b.** | Documentation | Inline documentation of code, as well as startup configuration with all necessary commands, included in repository | | ||
| | **0c.** | Testing and Testing Guide | Core functions will be fully covered by comprehensive unit tests to ensure functionality and robustness. In the guide, we will describe how to run these tests. | | ||
| | **0d.** | Docker | We will provide a Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | | ||
| | 2a. | nftaa_check | We will add functionalities to read and check if NFTAA exists for a given account | | ||
| | 2b. | nftaa_collections | We will add functionalities to read existing collections and manage NFTAAs if they are in a collection. | | ||
| | 2c. | nftaa_stake/unstake | The functionality needed to do stake/unstake operations on behalf of NFTAA, its like deposit/withdrawal functions | | ||
| | 2d. | nftaa_increase/decrease | Functions needed to increase or decrease stake by NFTAA, this is needed for full compatibility with traditional methods of staking | |
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I'm confused by this milestone. Previously you described your project as a solution to use the NFTAAs as virtual keyless accounts which are able to do anything a regular account can. Yet this milestone sounds like you are putting in a lot of work to make your solution compatible with the existing pallets for staking. If this is indeed necessary I think you should try to find a more generic solution which doesn't create this overhead for every pallet you want to support with NFTAAs.
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We don't want to do this for every pallet and we certainly want our solution to be generic, but the case of staking is special and therefore we want to have these functionalities explicitly ready. But it still applies NFTAAs are virtual keyless accounts which are able to do anything a regular account can.
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We believe staking is an ideal use case to showcase how NFTAA operates because it's a concept that many users are already familiar with, making it easier to grasp the potential of NFTAA. Additionally, staking plays a crucial role in maintaining network security, making it a fitting example to demonstrate the robustness and functionality of NFTAA in a practical environment.
applications/nftaa.md
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| | **0c.** | Testing and Testing Guide | Core functions will be fully covered by comprehensive unit tests to ensure functionality and robustness. In the guide, we will describe how to run these tests. | | ||
| | **0d.** | Docker | We will provide a Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | | ||
| | 0e. | Article | We will publish an **article** that explains NFTAA (what was done/achieved as part of the grant). The article will be published through an online media service, e.g., medium.com, and advertised through social networks. Our ambition, as we are from academic environment, is to have also an academic paper about the idea of NFTAA in Polkadot published in a conference venue | | ||
| | 3a. | Web app | Develop a web application to interact with the nftaa_pallet, allowing users to create, manage, and transfer NFTAAs, provide a web application to interact with the nftaa_pallet: allowing users to create collections and single item; manage of metadata and attributes; operate with NFTAA ownership (transfers); play with staking, increase stake and unstake handled by NFTAA; read operations as get for an account, get assets of NFTAA, get the owner of NFTAA | |
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We already have a ton of good staking interfaces and webapps. I don't think it makes sense to reinvent the wheel here. Instead I would suggest to integrate your necessary changes to a popular webapp like the Polkadot Staking Dashboard to make staking for NFTAAs work in a convenient way.
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We like this idea and we agree with you. This milestone can be understood as developing the integration to existing solutions, we definitely do not want to reinvent the wheel.
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great, would be nice if you could adapt the wording to that strategy.
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Are you still working on this, @Roman-24?
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Changes have been made in this commit
applications/nftaa.md
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| | **0d.** | Docker | We will provide a Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | | ||
| | 0e. | Article | We will publish an **article** that explains NFTAA (what was done/achieved as part of the grant). The article will be published through an online media service, e.g., medium.com, and advertised through social networks. Our ambition, as we are from academic environment, is to have also an academic paper about the idea of NFTAA in Polkadot published in a conference venue | | ||
| | 3a. | Web app | Develop a web application to interact with the nftaa_pallet, allowing users to create, manage, and transfer NFTAAs, provide a web application to interact with the nftaa_pallet: allowing users to create collections and single item; manage of metadata and attributes; operate with NFTAA ownership (transfers); play with staking, increase stake and unstake handled by NFTAA; read operations as get for an account, get assets of NFTAA, get the owner of NFTAA | | ||
| | 3b. | Marketplace app | We will also create a lightweight marketplace application for easily buying and selling the NFTAAs with an overall list in a form of a bulleting board. | |
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Why is this necessary and wouldn't be supported by existing NFT marketplaces?
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We can certainly make sales through the Koda platform, for example, and so it's true that we can prepare an integration to them instead of our own web app. We also have a good relationship with them and we believe that this kind of cooperation will not be a problem.
The lightweight application is more for testing purposes.
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@PieWol thank you so much for your effort to review our proposal. We've tried to answer your questions as best we can. If there is still something that is not clear we will be happy to continue the discussion. |
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Project Abstract
NFT as an Account (NFTAA) is an innovative project aimed at revolutionizing the use of NFTs within the blockchain ecosystem, particularly in the Substrate based networks like Polkadot and Kusama. The project seeks to leverage the unique properties of NFTs to function as proxy accounts, enhancing interoperability, security, and flexibility across various blockchain networks. By enabling NFTs to hold assets, stake, and interact with other blockchain components similarly to standard accounts, NFTAA introduces a novel approach to blockchain interactions.
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project_name.md).@_______:matrix.org(change the homeserver if you use a different one)