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<p><img src="https://choise.com/_next/image?url&#61;https%3A%2F%2Fcms.choise.com%2Fassets%2Ff8e064d6-42a5-45e5-bb82-f160c48713c5.png&amp;w&#61;3840&amp;q&#61;75" /></p><h2 id="header-0">In this guide</h2><ul><li>What is an NFT smart contract?</li><li>Advantages of using smart contracts</li><li>Standards of smart contracts for creating NFTs</li><li>How are NFT smart contracts created?</li><li>What does a smart contract cover?</li><li>How do smart contracts verify authenticity?</li><li>Do smart contracts prevent counterfeits?</li><li>Examples of NFT smart contracts</li><li>How to create an NFT smart contract?</li><li>Final thoughts</li></ul><h2 id="header-1">What is an NFT smart contract?</h2><p>An NFT (<a href="https://choise.com/news/crypto-world/what-is-nft-and-how-does-it-work-2023" rel="noopener noreferrer nofollow">Non-Fungible Token</a>)  smart contract is a computer program that is stored on a blockchain  network, such as Ethereum. The smart contract contains the rules and  logic that govern the creation, ownership, transfer, and storage of a  specific NFT.</p><p>When someone  creates an NFT, they typically use a smart contract to define the unique  characteristics of the NFT, such as its name, description, and  metadata. The smart contract also specifies the rules for <a href="https://choise.com/news/tutorials/how-to-trade-nfts-2023" rel="noopener noreferrer nofollow">transferring ownership of the NFT</a>, such as how much cryptocurrency is required to purchase it and where the funds should be sent.</p><p>Once  the smart contract is deployed on the blockchain network, it becomes a  self-executing program that can interact with the blockchain and  automatically enforce the rules that were programmed into it. This  ensures that the NFT is always managed in a transparent, <a href="https://choise.com/news/crypto-world/nft-security-issues-2023" rel="noopener noreferrer nofollow">secure</a>, and decentralized manner, and that ownership and transactions are recorded immutably on the blockchain.</p><h2 id="header-2">Advantages of using smart contracts</h2><ul><li>Security<br /></li></ul><p>NFT  smart contracts are built on blockchain technology, which makes them  secure and tamper-proof. The contracts are executed automatically by the  network, so there is no need for intermediaries, which reduces the <a href="https://choise.com/news/tutorials/how-to-detect-nft-scams-2023" rel="noopener noreferrer nofollow">risk of fraud</a> and hacking.</p><ul><li>Transparency<br /></li></ul><p>NFT  smart contracts are transparent, as all the information is stored on a  public blockchain that can be accessed by anyone. This makes it easy to  verify the authenticity of an NFT and ensures that ownership is clear  and undisputed.</p><ul><li>Decentralization<br /></li></ul><p>NFT  smart contracts are decentralized, which means that there is no central  authority controlling the network. This makes it more difficult for bad  actors to manipulate the system, as there is no single point of  failure.</p><ul><li>Programmability<br /></li></ul><p>NFT  smart contracts are programmable, which means that developers can  create custom contracts that suit their specific needs. This allows for a  wide range of use cases, such as creating collectibles, art, music, and  <a href="https://choise.com/news/crypto-world/10-nft-types-what-is-inside" rel="noopener noreferrer nofollow">more</a>.</p><ul><li>Efficiency<br /></li></ul><p>NFT smart contracts are efficient, as they automate many of the processes involved in creating, <a href="https://choise.com/news/tutorials/how-to-buy-nfts-2023" rel="noopener noreferrer nofollow">buying</a>, and selling NFTs. This reduces the need for intermediaries and paperwork, which saves time and reduces costs.</p><h2 id="header-3">Standards of smart contracts for creating NFTs</h2><p>There are several standards of smart contracts that are used for <a href="https://choise.com/news/crypto-world/what-is-nft-minting-2023" rel="noopener noreferrer nofollow">creating NFTs</a>.  These standards ensure that NFTs are interoperable, meaning they can be  used and exchanged across different platforms and applications.</p><p>The most commonly used standards for NFT smart contracts are:</p><ol><li><strong>ERC-721</strong> – the original standard for NFTs on the Ethereum blockchain. It defines  the minimum interface that a smart contract must implement in order to  create a non-fungible token.</li><li><strong>ERC-1155</strong> – a newer standard that was introduced as an improvement over ERC-721. It allows for the creation of both <a href="https://choise.com/news/crypto-world/nft-is-there-hope-for-the-market" rel="noopener noreferrer nofollow">fungible and non-fungible tokens</a> within the same smart contract. This makes it more efficient for  creating collections of NFTs, as it reduces the number of contracts that  need to be deployed.</li><li><strong>ERC-998</strong> allows for the creation of NFTs that can own other NFTs. This makes it  possible to create complex collections of NFTs that can be traded as a  single unit.</li><li><strong>TRC-721</strong> – a standard for NFTs on the Tron blockchain. It is similar to ERC-721,  but has some minor differences in the interface that a smart contract  must implement.</li><li><strong>NEP-11 </strong>–  a standard for NFTs on the NEO blockchain. It is similar to ERC-721,  but has some differences in the way that ownership and transfer of  tokens are managed.</li></ol><h2 id="header-4">How are NFT smart contracts created?</h2><p>Сreating  an NFT smart contract requires programming skills and knowledge of  blockchain technology. Such contracts are created using programming  languages like Solidity, which is a high-level programming language  designed specifically for creating smart contracts on the Ethereum  blockchain.</p><p>Here are the  basic steps to create an NFT smart contract. The first step is to write  the code for the NFT smart contract using a programming language such as  Solidity. This code defines the rules and logic for the NFT, such as  its name, symbol, metadata, and transferability.</p><p>Once  the code is written, it needs to be compiled into bytecode that can be  executed on the Ethereum Virtual Machine (EVM). The compiled bytecode is  then deployed to the Ethereum network as a smart contract. This  requires the payment of a deployment fee, known as gas, which is paid in  Ethereum cryptocurrency.</p><p>Once  the smart contract is deployed, the NFT can be created by calling the  create function in the smart contract code. This function will create a  new token and assign ownership to the account that called the function.</p><p>The smart contract can be used to manage the ownership and <a href="https://choise.com/news/tutorials/how-to-trade-nfts-2023" rel="noopener noreferrer nofollow">transfer of the NFT</a>, such as by implementing functions that allow for the sale or transfer of the token.</p><p><img src="https://cms.choise.com/assets/62deb60c-3763-481a-a67a-9cc5eda61b9b?width&#61;1440&amp;height&#61;260" /></p><h2 id="header-5">What does a smart contract cover?</h2><p>A  Non-Fungible Token smart contract covers the rules and logic that  govern the creation, ownership, transfer, and storage of a specific NFT.  Check some of the key elements that an NFT smart contract <a href="https://choise.com/news/tutorials/how-to-detect-nft-scams-2023" rel="noopener noreferrer nofollow">typically covers</a>:</p><ul><li><strong>Token metadata</strong> that describes the NFT, such as its name, symbol, and description.</li><li><strong>Token ownership</strong> transfer rules, such as how much cryptocurrency is required to purchase it and where the funds should be sent.</li><li><strong>Token creation</strong> rules, such as the maximum number of tokens that can be created and how they can be minted.</li><li><strong>Token storage</strong> on the blockchain network, such as in a digital wallet or a decentralized storage system.</li><li><strong>Token additional functionality</strong>, such as whether it can be used as collateral for a loan or as a reward for completing a task.</li></ul><h2 id="header-6">How do smart contracts verify authenticity?</h2><p>First,  NFTs have a unique identifier that is assigned to them by the smart  contract when they are created. This identifier is stored on the  blockchain and cannot be changed, ensuring that each NFT is unique and  cannot be replicated.</p><p>NFT  smart contracts can also use digital signatures to verify the  authenticity of the creator and owner of the NFT. Digital signatures are  created using cryptographic algorithms and provide a secure and  tamper-proof way of verifying the identity of the sender and receiver of  a transaction.</p><p>Besides,  NFTs can contain metadata that describes the asset, such as its name,  description, and image. This metadata can be used to verify the  authenticity of the NFT by comparing it to the original asset.</p><p>Finally, the blockchain network provides a transparent and tamper-proof record of the ownership <a href="https://choise.com/news/cho-token/4-things-that-give-nto-value" rel="noopener noreferrer nofollow">history of an NFT</a>. This means that the ownership of the NFT can be verified by checking the transaction history on the blockchain.</p><h2 id="header-7">Do smart contracts prevent counterfeits?</h2><p>NFT smart contracts can help prevent counterfeiting of digital assets by providing a <a href="https://choise.com/news/crypto-world/nft-security-issues-2023" rel="noopener noreferrer nofollow">secure and transparent way</a> to verify the authenticity of an NFT. However, it is not a foolproof solution.</p><p>Counterfeiters  can still attempt to create fake NFTs by copying the metadata of an  existing NFT, such as its name, description, and image, and creating a  new token with the same metadata. To prevent this, some NFT platforms  use advanced techniques such as image recognition, watermarking, and  other digital signatures to ensure the authenticity of the NFT.</p><p>Overall, it is important to exercise caution when buying and selling NFTs and to do <a href="https://choise.com/news/tutorials/what-is-opensea-2023" rel="noopener noreferrer nofollow">due diligence </a>in verifying the authenticity of the NFT before making a purchase.</p><h2 id="header-8">Examples of NFT smart contracts</h2><ul><li>CryptoKitties<br /></li></ul><p>CryptoKitties  is a popular NFT platform that uses smart contracts to create unique  digital cats that can be collected, traded, and bred. The smart contract  defines the rules for creating new CryptoKitties, including their  unique attributes and genetic makeup.</p><ul><li>Decentraland<br /></li></ul><p>Decentraland  is an NFT platform that uses smart contracts to create virtual real  estate that can be bought and sold. The smart contract defines the rules  for creating new parcels of land, including their location, size, and  ownership.</p><ul><li>NBA Top Shot<br /></li></ul><p>NBA  Top Shot is an NFT platform that uses smart contracts to create unique  digital collectibles that are based on iconic NBA moments. The smart  contract defines the rules for creating new moments, including their  rarity and authenticity.</p><ul><li>SuperRare<br /></li></ul><p>SuperRare  is an NFT platform that uses smart contracts to create unique digital  art that can be collected and sold. The smart contract defines the rules  for creating new artworks, including their ownership, authenticity, and  provenance.</p><h2 id="header-9">Final thoughts</h2><p>NFT smart contracts are a <a href="https://choise.com/news/tutorials/nft-staking-quick-guide-2023" rel="noopener noreferrer nofollow">powerful tool</a> for creating, transferring, and verifying the ownership of digital  assets. They provide a secure and transparent way to ensure the  uniqueness and authenticity of each NFT, as well as a tamper-proof  record of its ownership history. NFT smart contracts are being used in  many different applications, from gaming and virtual real estate to  collectibles and digital art, and are increasingly being adopted by a  variety of industries.</p><p>While  NFT smart contracts offer many advantages, it is important to note that  they are not a foolproof solution for preventing counterfeits or  guaranteeing the value of an NFT. As with any investment, it is  important to carefully evaluate the authenticity, <a href="https://choise.com/news/cho-token/discover-nto-what-is-rarity" rel="noopener noreferrer nofollow">rarity</a>, and potential value of an NFT before making a purchase.</p><p>Overall,  NFT smart contracts are a powerful tool that are transforming the way  we think about ownership and value in the digital world. As the  technology continues to evolve, it will be exciting to see how NFT smart  contracts are used in new and innovative ways.</p><p>Read full article: <a href="" rel="noopener noreferrer nofollow">https://choise.com/news/tutorials/nft-smart-contracts-explained-2023</a></p>

NFT smart contracts explained

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