NFT Smart Contract

NFTs, primarily reside on the Ethereum blockchain and are executed using the smart contracts functionality. Smart contracts are pre-defined agreements automatically executed when certain conditions are met. In simple technical language, smart contracts are programmable if-else statements that make the action take place, eliminating the need for third parties.

 

NFTs, when combined with smart contracts, result in - NFT Smart Contract.

What is an NFT Smart Contract?

An NFT smart contract includes details of the creator of the NFT, parties entitled to royalties each time the NFT is sold, and the ownership history. These could work in two ways. NFTs could be embedded within smart contracts and vice-versa.

 

Assume NFTs are embedded within smart contracts. In this scenario, a smart contract can own the NFT within it and transfer it to another user based on the conditions defined in the contract.

 

Alternatively, smart contracts could be within an NFT. For instance, in music NFT, a song may be embedded in the NFT through a smart contract. The user or another smart contract would agree to the conditions, pay the fee, and get access to the song. This is what happens behind the scenes when users hit the ‘Play’ option in a music application.

 

Besides simplifying and speeding up the process, these smart contracts offer a high degree of transparency, security, and immutability.

Examples

 

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