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What is an NFT?
A Non-Fungible Token (NFT) is referred to as the non-interchangeable unit of information that is stored over the blockchain. NFT is stored in the form of a digital ledger, which can be traded and sold.
Unlike cryptocurrencies, cryptographic tokens are non-fungible which makes them irreplaceable. For instance, the Bitcoin is a fungible token that can be exchanged for another Bitcoin and will have the same value as others. However, unique NFT collectibles like baseball cards are not interchangeable. In case you change the NFT collectible for another card, you will receive a completely distinct thing.
What is a Smart Contract?
A Smart Contract is referred to as a program stored over the blockchain that executes when a predefined condition is fulfilled. Smart contracts are typically utilized to automate the implementation of the agreement without any middleman or time loss.
The NFTs are developed using a smart contract that resides over the blockchain. For instance, after designing an art object, the user requires to create and deploy the smart contract. The smart contract will help in binding the files and the metadata developed during the generation process. The user further needs to deposit the smart contract on the server where it is easily accessible by potential buyers.
Why is an NFT Smart Contract required?
- Immutable – It can’t be changed after deploying, which makes it more secure.
- Transparent – In case, the smart contract is implemented over the public blockchain, it can be seen by everyone.
- Customizable – It can be customized as per the user’s requirement, making it more versatile for varied uses.
- Deterministic – It only implements the predefined condition in a systematic manner.
- No risk of human error – As they are automated, there is no risk of human error.
Create your own NFT Smart Contract:
The NFTs are developed using a process called minting. In minting, the images, sound bites, videos, and other digital files are converted into crypto assets over the blockchain. While minting the NFTs, the user configures the smart contract code on which the quality of your crypto asset depends.
Many standards have been recognized for smart contracts to make sure that NFTs can easily interact with the applications. For example, there are many smart contracts blockchains that possess in-built NFT creation tools like Tezos, TRON, and EOS. Without using common standards to develop NFT smart contracts, NFTs might not be traded on the NFT marketplace where it is not minted.
Standards used to create an NFT Smart Contract
- ERC–721: Ethereum ERC-721 standard is a widely utilized standard for creating non-fungible tokens. The standard requires all tokens to be non-fungible and generates unique token IDs.
- ERC –1155: This standard was established to accommodate both non-fungible assets, such as limited edition skins and fungible assets, such as in-game currencies.
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