What is a smart contract NFT
Today, blockchain technology is a real breakthrough in the digital space. Thanks to it, digital resources can be safe storage and not subject to any falsification. Ownership of NFT, secure transactions and more is carried out using an internal document in the blockchain smart contract. So, what is NFT smart contract?
An NFT smart contract is a document in the form of programming that functions thanks to blockchain technology and has automatic principles of operation. That is, the smart contract autonomously checks the fulfillment of certain conditions. Such construction of market relations significantly saves time for both parties and eliminates the possibility of errors due to the “human factor”.
Advantages of using smart contracts for NFT
A smart contract NFT has a number of important advantages that make it special.
- Parties do not have to build their financial relationships on the basis of personal trust. They can only write an NFT smart contract, which will describe all the “rules of the game” and the system will independently monitor their implementation.
- Smart contracts reject the requirement for intermediaries and significantly save time for both parties. Also, due to automation, the risk of human errors is reduced.
- A smart contract NFT is not subject to change after deployment. This makes its conditions as fair as possible for both parties. And after deployment, its data becomes obvious and accessible for observing.
Creating NFTs With Smart Contracts
Minting is the process of creating an NFT that turns an object (photo, video, sound) into a digital asset with a code. The quality of your NFT will be determined by the underlying code that is created during minting. The ownership of your NFT asset must be backed by an NFT smart contract.
According to statistics, about 80% of all NFT smart contracts are developed in the Ethereum network. The remaining 20% are shared by Solana, Polygon, BNB and other networks.
Each of them has its own programming language. Ethereum and BNB — Solidity, Solana — Rust, Polygon — Golang, Solidity, and Vyper programming languages.
Standards of smart contracts for creating NFTs?
The most popular standard for an NFT smart contract within NFT minting is ERC-721 on Ethereum. This standard requires the uniqueness of absolutely all NFT components at the level of the smallest token fragments.
In addition to the first pattern of a smart contract NFT, the ERC 1155 standard is used in the minting of gaming NFTs. It allows the token ID to define its own type of tokens with their own data set.
The presence of such standards greatly simplifies the work with the blockchain, as they create certain standards that serve to some extent as a checklist for making an NFT smart contract which is high-quality.
NFT-related Use Cases for Smart Contracts
After knowing what is NFT smart contract defines, let’s learn about its relation use cases.
Enforcing ownership and verifying authenticity
An NFT smart contract asserts your ownership of an asset. All smart contracts are publicly accessible as they are developed on blockchain technology. This means that with it you can easily track the ownership of the asset and the authenticity of its certificates.
Preventing plagiarism and counterfeiting
Using a smart contract will protect you from getting scammed. After all, with the help of this document, the ownership is approved and the uniqueness is checked. At a time when fraudsters can make an unlimited number of copies of NFT, passing them off as the original — a smart contract NFT is a must-have!
Facilitating business transactions
A smart contract NFT will be your guarantor in the safe execution of the transaction. The parties to the transaction do not have to build trust over a long period of time. Because the smart contract will automatically manage the transaction after all conditions are achieved by all parties to the contract.
SUMMARY
After realizing what is NFT smart contract value and understanding how it works, you can start working with blockchain without any fears. Smart contracts are a phenomenon that has already become universal enough to become massive.
About OctoGamex
OctoGamex is a decentralized multi-chain NFT Trading Platform built for In-Game and Metaverse Assets, connecting gamers, games, and guilds around the world. We’re building a single access point to the GameFi NFT ecosystem, enabling among others such products as: Multichain Marketplace, CrossChain NFT Bridge, Marketplace Widget, Analytics for MMs, NFT rental and lending services, and would love to share more with you.
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