One of the main elements of a non-fungible token is the NFT smart contract that comes with it! In fact, it might just be THE most important element to factor into your non-fungible token journey! However, we’re not really going to go into all the gory technicalities of these contracts. After all, we’re trying to make your life LESS complicated here.
So, we’re going to explain how contracts work, and what you NEED to know about them. Also, how to make use of a contract as best as you can whether you are a buyer or a seller. But, before we start, make sure you check out our guide on everything NFTs! It has everything you need to know before you mint your first ever NFT. Click on the button to check it out!
Explaining an NFT Smart Contract!
The main definition for an NFT smart contract is – basically – a digital, programmed contract on the blockchain. In other words, it is a bunch of code put together in a single form of a digital “deal” you can call it. It has conditions that – when met – set a certain action into motion within the network of the blockchain. This means that the contract itself represents the agreement between the buyer and seller.
How Does An Nft Smart Contract Work?
So, since we’ve already established that an NFT smart contract contains certain conditions, you can figure out how it works. Basically, only when you meet the first conditions of the contract, the network executes them. Therefore, you only put the contract into action when you meet the set conditions.
Also, since the contract exists on a decentralized chain as well, this makes it completely transparent. Anyone and everyone can check the terms of this contract. It uses standards like the ERC-721 and executes codes accordingly!
The creator of the NFT smart contract is usually the creator of the NFT itself. They can add specific rules which also include percentages for NFT royalties!
What You Find On Contracts
Generally speaking, an NFT smart contract contains things like data on ownership, transaction details, IDs, links, and more. Sometimes, you can find more contracts within the contract itself! Here’s a list of things you can find on a smart contract:
- Balance: the total number of tokens on the contract
- Name Tag: Addresses of interest
- Contract Creator: the wallet address of the contract creator and a link to the original transaction
- Token Tracker: information about the minimum price, maximum total supply, transactions, websites, and social media accounts for the NFT. Basically, all the properties of the NFT!
- Transactions: All previous transactions on the contract
- Internal TXNs: The value transfers when the smart contract is put into action. This represents the value of transactions between contracts
- Contract: More details on the contract
- Analytics: Data on transactions, fees, and transfers
Where to Find the NFT Smart Contract?
Next, where do you find and read an NFT smart contract? It’s pretty simple and we do recommend you do this before you buy an NFT. This ultimately gives you more insight into the collection and token you want to buy. And, it ultimately helps you avoid possible NFT scams!
All you have to do is go to any NFT marketplace you want and find the NFT you wanna buy. Click on the DETAILS tab and go to CONTRACT ADDRESS. And That’s it! You have full access to the NFT smart contract and all the information that comes with it!
That’s all you basically need to know about NFT smart contracts. For more information on non-fungible tokens, crypto, and more – follow our NFTs news page for all the latest updates!