AIP: Non-fungible Token Standard

[Nigui]

---

AIP: 33
Title: Non fungible token management
Authors: Guillaume Nicolas [email protected]
Status: Draft
Discussions-To: https://github.com/arkecosystem/AIPS/issues
Type: Standards Track
Category: Core
Created: 2019-02-11
Last Update: 2019-09-11

Abstract

While fungible tokens can be exchanged with each other without loss of value, non-fungible tokens are unique pieces with value based on their properties and scarcity.
It's a new way to digitize assets ownership like sports cards, game stuff, art pieces, houses, identities, ...

This AIP proposes to add a new feature for Ark framework: the non-fungible token support.
It leads to create new transaction types for token creation, transfer and properties values updates.

Motivation

This concept is born on Ethereum with the EIP 721 where the discussion was: How can we standardize smart-contracts implementing non-fungible tokens, from the representation and transfer point of views ?. The main goal was to ease tool creation (like exchanges) wherein multiple NFT classes could be traded, without the need to adapt to each token specificities.

Now NFTs are very popular on blockchain platforms, Ethereum, Qtum, Stellar, Neo, EOS,...

This AIP differs from EIP 721, in the way that we want framework users to be able to configure NFT class, create, update and transfer on their custom chain, without editing core code, but simply with configuration files. It's continuity of blockchain in one click baseline.

Specifications

Here are the terms used in this document:

• NFT: stands for non-fungible token
• NFT class: like in OOP, it defines all tokens properties, characteristics and behaviours (like distribution model, type of data attached to a token, visibility, price,...). They can't be updated by user transactions. They're used to identify NFT classes (supposing multiple ones co-exist on the same chain).
• NFT: it's a unit, an instance of the NFT class. It's an indivisible and unique asset, verifying all NFT class properties.
• mint: token creation/instantiation process.

Note: vocabulary is arbitrary and can be updated with discussions

In this part, we focus on specifications for a simple NFT class, allowing mint (first-in-first-served and free), ownership transfer and properties values updates. We assume that NFT class is living alone on a dedicated chain (i.e the chain does not handle multiple ones).
Then, we describe a non-exhaustive list of token features we have to keep in mind during the design process.

Transactions

The advantage of NFTs is that you cryptographically own a token. As a consequence, a transaction is valid only if sender is the token owner.

In order to be able to handle NFTs, at three new transactions must be defined (types 9 and 10 and 11).

Three distinct transaction types is useful to :

• set different minimum fees for different NFT actions (based on chain token economy)
• be able to easily distinguish NFT actions in tools (CLI, explorer or even in plugins).
• add global checks on which transaction types a wallet can submit (if some roles exist on a chain)

Note: types number are arbitrary choices. They'll be increased to prevent conflicts with future types released before nft transactions.

> Mint (type 11)

The first thing to do to get a NFT is to create and broadcast a mint transaction.
This transaction is responsible of writing on chain that a given wallet is the first owner of a token identified by a never used value.

Transaction sender will be the first NFT owner.
NFT must not be owned by a wallet before transaction application.
If properties are set, they must comply with their network constraints (More details below)

Transaction dedicated parameters

• token id, a 32 characters string
• (optional) a list of properties to set at creation (a simple key/value json object)

Transaction payload

Description	Size (bytes)	Example
type	1	0x0B
token id	32	0x0000000000000000000000000000000000000000000000000000000000000001
properties length	1	0x01
property N key length	1	0x12
property N key (utf-8)	1-255	0x70726f706572747931
property N key length	1	0x40
property N value	1-255	0x3C9683017F9E4BF33D0FBEDD26BF143FD72DE9B9DD145441B75F0604047EA28E

Payload size is between 33 and 130 KB (type is a mandatory field of transaction header )

Design choices

1. token id size (32 bytes) is an arbitrary choice inherited from ERC721 specifications identifying NFTs as the largest unsigned integer of the EVM: uint256 (256 bits). It also allows a wide variety of applications because UUIDs and sha3 outputs are of this size.
2. Token id is computed off-chain. It's a design choice easing the minting process. The same process is used in popular NFTs on other chains (like Cryptokitties on Ethereum).
3. It's not possible to mint a token for someone else. Two transactions are needed (mint then transfer). It's a questionable design choice.

> Transfer (type 9)

Transfer NFT ownership to another wallet.

Transaction sender must own the identified nft and recipient will be the new owner.

Transaction dedicated parameters

• NFT identifier to transfer
• recipient wallet address, future token owner

Transaction payload

Description	Size (bytes)	Example
type	1	0x09
token id	32	0x0000000000000000000000000000000000000000000000000000000000000001
recipient address	21	0x171dfc69b54c7fe901e91d5a9ab78388645e2427ea

Payload size is 53 bytes (type is a mandatory field of transaction header )

Design choices

1. Transfer type is only used to transfer a token. You can't transfer and update properties with the same transaction.
2. It's not possible to delegate transfer right to another wallet (like it is in ERC721 specification) It's a questionable design choice.

> Update (type 10)

This transaction type is used to add, update and delete properties of a NFT instance.

NFT must be minted and transaction sender must own NFT before application.
Each property must comply with its network constraints (More details below)

Transaction dedicated parameters

• token identifier to update properties
• a list of properties and their value (a key/value json object).

Transaction payload

Description	Size (bytes)	Example
type	1	0x0B
token id	32	0x0000000000000000000000000000000000000000000000000000000000000001
properties length	1	0x01
property N key length	1	0x12
property N key (utf-8)	1-255	0x70726f706572747931
property N key length	1	0x40
property N value	1-255	0x3C9683017F9E4BF33D0FBEDD26BF143FD72DE9B9DD145441B75F0604047EA28E

Payload size is between 33 and 130 KB (type is a mandatory field of transaction header )

Design choices

1. properties length is the number of updated properties. It must be positive. Size of the payload has been limited to 1 byte. As a consequence, the maximum number of updatable properties in a single transaction is (2^8)-1=255 properties.
2. property key is encoded in utf8 and can contain a maximum of 255 characters.
3. property value must be an output of the sha-256 function. It's a design choice used to limit the size of token properties value. We don't want blockchain to store a lot of crappy data, but prints of these crappy data stored elsewhere.
4. Some controls on new properties value can be made on-chain with NFT constraints feature (details bellow).
5. Token id and token owners can't be updated with this transaction type. Token id can't be updated at all.Token owner can be updated with a transfer transaction.

Model

A new model must be created to represent an NFT instance:

class NFT {
    public id: string;
    public properties: { [_: string]: string };
    constructor(id: string) {...}
    public updateProperty(key: string, value: string) {...}
}

Existing Wallet model must be extended to reference owned tokens id:

class Wallet {
    [...]
    public tokens: string[];
    
    [...]
}

Events

In order to be compatible with existing applications handling NFTs (exchanges, wallets,... ), we must provide a simple way to detect updates on NFTs.
Similarly to ERC721 proposal, we can broadcast events at several steps of NFTs life-cycle:

• token creation
• ownership update
• properties update

Core-webhooks is the module forwarding events to applications.

It's listening event-emitter events, so new blockchain events must be added:

• nft.created
• nft.transferred
• nft.updated

Database

We need to store tokens and their properties values in the database because of scalability. Indeed, store nfts and their properties in memory (like wallets) could cause performance issues and memory bursting.

A new repository and queries in core-database-postgres are required.

API

We need new routes fetching NFTs from current chain state.
Here are some new routes, depending on your NFT name configuration: <nft_name> (see configuration file below).

• [GET] /<nft_name>s/: to index all sealed NFTs. This route follows the same logic as other root routes (like /transactions or /blocks). It's paginated and returns all properties for each of your NFT.
• [GET] /<nft_name>s/{id}: to show NFT instance with given identifier
• [GET] /<nft_name>s/{id}/properties: to get all properties of a NFT (paginated), a list of key-value
• [GET] /<nft_name>s/{id}/properties/{key}: to get value of a specific property of a NFT, designated by its key
• [GET] /wallets/{wallet_id}/<nft_name>s/: to index all sealed NFTs for a specific wallet, designated by its public key or address. This route follows the same logic as /<nft_name>s/.

Existing routes:

• [POST] /transactions/: is used to submit a new NFT transaction (transfer or update).

NFT dedicated plugin

In order to isolate NFT support feature, a new core plugin has been created, dedicated to NFT management.
This plugin has many roles:

• define models
• parse configuration
• build token logic and validation rules from configuration
• keep and manage the state of NFTs at runtime
• ...

NFT configuration file

A NFT must be configurable through network.json file because its properties are specific to a network and must be the same for all nodes validating nft transactions.

A new property of network is created.

Here is a configuration sample where chain hosts UNIK NFTs, which can have :

• an immutable property a with only 2 possible number values (1 and 2).
• a genesis property b

{
    "nft": {
        "<nft_name>": {
            "name": "Your NFT Name, for human reader",
            "properties": {
                "a": {
                    "constraints": [
                        "immutable",
                        {
                            "name": "type",
                            "parameters": {
                                "type": "number",
                                "min": 1,
                                "max": 2
                            }
                        }
                    ]
                },
                "b": {
                    "genesis": true
                }
            }
        }
    }
}

Please note the <nft_name> will be used to setup the API HTTP routes, sometimes also by adding a trailing s when pluralized.

Example, for the UNS network, powering the UNIK NFT.

{
    "nft": {
        "unik": {
            "name": "UNIK",
            "properties": {
                "a": {
                    "constraints": [
                        "immutable",
                        {
                            "name": "type",
                            "parameters": {
                                "type": "number",
                                "min": 1,
                                "max": 2
                            }
                        }
                    ]
                },
                "b": {
                    "genesis": true
                }
            }
        }
    }
}

NFT genesis property

A genesis property is a NFT property that must be set at NFT creation (in a mint transaction).

If a NFT property has the (object) property genesis=true then, the mint transaction must include nft.properties asset AND this property must have a value ( compliant with may exist constraints).
If it doesn't, then transaction is rejected and NFT is not minted.
By default, a NFT property is not genesis.

NFT constrained property

A NFT property constraint is a set of rules a property value update of a NFT transaction (mint or update) must obey in order to be applied and forged.

It's composed by:

• a name/identifier
• optional parameters to customize constraints depending on property.

As an example, we could have an immutability constraint (immutable as identifier) which causes a property to not be updatable after being set.

As an other example, we could have more abstract constraints like type which causes a property value to be of a specific type (number, string,... ).
In that case, we could add constraints depending property type and value. In the example above, we set that property a must be a number between 1 and 2.

Constraint logic is implemented into core-nft plugin as a class which must implement the Constraint interface:

interface ConstraintApplicationContext {
    propertyKey: string;
    propertyNewValue: string;
    transaction: ITransactionData;
}

interface Constraint {
    apply(context: ConstraintApplicationContext, parameters?: any): Promise<void>;
    name(): string;
}

Each constraint must set a name and implement a check on nft property update transaction validity.
To check validity, a constraint has several information:

• a context
  • the updated property key
  • its new value
  • and the overall transaction ( can be used to set complex rules ( based on sender, fees, or any other nft property update value ) )
• possible constraint parameters as described previously.
• and they can do asynchronous operations like get property current value from database.

Bellow is an example of how type constraint could be implemented (voluntarily simplified):

class TypeConstraint implements Constraint {
    public async apply(context: ConstraintApplicationContext, parameters?: any){
        const { type, min, max } = parameters;
        if( type === "number" && ( context.propertyNewValue < min || context.propertyNewValue > max )){
            throw new ConstraintError();
        }
    }

    public name() {
        return "type";
    }
}

Constraint application must be made inside the canBeApplied method of nft-update transaction handler.

Current proposal makes nft property constraint relatively easy to customize : register a new custom constraint logic to constraint manager and reference it directly from network.json file.

Note 1: network.json is validated before used using schemes. When adding custom constraints, you must update network.json scheme accordingly.

Advanced token features

Here is a non-exhaustive list of behaviours and characteristics token class could specify, to keep in mind during the design process. They're inspired by existing ERC721 tokens. Some items could have a dedicated AIP in the future.

• advanced token distribution
  • complex mint process,
  • dynamic/static price,
  • limit available tokens,
  • auction,
  • renewable ownership,
  • ...
• security mechanisms with roles controlling token life-cycle
  • unusable,
  • kill,
  • forced release,
  • ...
• multiple NFT class on the same chain
• composability (NFT linked to each other)
• ...

Reference Implementation

I'm working on @unik-name solution at Spacelephant and our product is based on NFTs.
We've developed a proof-of-concept of Ark's NFT in our labs.

Project sources are available on the dedicated repository.

[ghost]

@Nigui Thanks for opening this issue, a maintainer will get back to you shortly!

[ghost]

@faustbrian @supaiku0 - please review this in the next few days. Be sure to explicitly select labels so I know what's going on.

If no reviewer appears after a week, a reminder will be sent out.

[boldninja]

Very nice work @Nigui !

[fix]

Thanks @Nigui for the proposal, with very good content.

Just a few remarks as i am reading:

• Why Bignum[] to hold the NFT, that is one computing step further. What about storing as Buffer[] instead
• as for Model/TX/Schema needed modification, we are also working with @kristjank to abstraction so it would be extending one single concept (a contract? naming still being brainstorm) that would be one single concept to code and integrate. The work would be the same but more isolated and easier to maintain (pretty much like smart contracts)

[Nigui]

Thx @boldninja and @fix.

@fix:

• Just to clarify,Bignum is only used to store token id. Not all tokens properties.
• you’re right, maybe Bignum is not suitable because we don’t want to do any computations on token ids.
• It could be string like for block.id and transaction.id ?
• What’s the benefit of using Buffer against string to store a single value on 32 bytes ? good binary data handling ?

as for Model/TX/Schema needed modification, we are also working with @kristjank to abstraction so it would be extending one single concept (a contract? naming still being brainstorm) that would be one single concept to code and integrate. The work would be the same but more isolated and easier to maintain (pretty much like smart contracts)

Are you talking about AIP-29 ?

[fix]

@Nigui

• yes true, token id is referring to the related NFT object
• yo
• I believe Buffer is better at handling data (if comparing or streaming data or IO is needed)

AIP-29 yes but more abstract, AIP-29 is only about the transaction abstraction part. AIP-29 might move to this new AIP

[doubled1c3]

I like this idea of NFTs with ARK. It will bring more capabilities, powers and use cases to ARK technology, especially in gaming, an important sector.

[Nigui]

I've added Event section to comply with ERC721 proposal and updated token id type

[Nigui]

I've updated the proposal :

• add nft configuration file specification
• add public API route to get nft properties
• replace nft id by string
• improve explanation of database storage requirement
• fix computation error on nft update tx payload length
• remove useless deprecated Transaction validation section
• remove useless todo section

[Nigui]

NEW Proposal update :

• explain split of nft transactions in 3
• add nft-mint transaction
• refactor nft-transfer
• add genesis property feature
• improve constrained property feature

[Nigui]

NEW proposal updates:

• refactor public API to host multi NFT tokens on the same chain
• specify NFTs pagination on public API

[kristjank]

@Nigui thanks for the updates and good work on the AIP.

With v26 on the mainnet horizon and as recently discussed, we can start to turn this into a PR, and add other specifics.

The new transaction types will go nicely with the latest updates to v.26 GTI - Custom Transactions. A good example on how to structure the TransactionType specification would our AIP-102 - HTLC Specs where each transaction type has verify, apply and fees sections.

[Nigui]

@kristjank awesome !! 🎉
We've just started migration of plugin to Ark 2.6 (using develop branch for the moment). We were waiting GTI stabilisation actually.
We'll submit a PR asap and update AIP proposition (if needed).
What do you mean by "other specifics" ?

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