Are NFTs Smart Contracts?

NFTs, or non-fungible tokens, create a digital scarcity in this space. Something quite different from many other digital creations around today, most of them boundless in supply. So what exactly are NFTs?

What Is a Smart Contract?

Smart contracts are programs that are stored within blockchains. These contracts enable a particular network to store information and data related to an NFT transaction. Once complete, this info can be referenced and accessed anytime.

These programs run when certain conditions are met. Smart contracts are utilized to automate the execution of an agreement, ensuring all participants are sure of the outcome. All of this is done without the need for an intermediary.

Smart contract code and data deploy using cryptographically signed transactions on a blockchain.

A simple example of an Ethereum smart contract would be a user sending a friend ten ether but requires that it cannot be released until after a specific date by using a smart contract.

What Is an NFT?

NFTs are essentially digital assets containing identifiable information recorded within smart contracts. The information encoded within each non-fungible token is what makes them so unique.

NFTs are managed by smart contracts that govern specific actions, such as:

• Handling transferability

• Verifying ownership

Since NFTs are software applications, they can also be programmed to exceed basic functioning. For example, think about linking to other digital assets, handling NFT smart contract loyalties, etc.

What Are Smart NFTs?

Phantasma Smart NFTs are designed with a particular concept of non-fungible token metadata split into unchangeable ROM and improved RAM. [1] Some advantages of smart NFTs include:

• They’re multilayered

• They can be timed

• They’re minted-on-demand

• They can be nested and infused with multiple assets

• They feature locked content

Resources:

1. https://phantasma.io/kb/phantasma-smart-nfts/#:~:text=A%20Phantasma%20Smart%20NFT%20can,different%20individual%20NFT%20car%20parts.