π§ Smart Contracts
All about smart contracts and their importance in the NFT space.
What is a Smart Contract?
A smart contract is a program that is coded to execute a sales agreement between an NFT owner and the buyer.
From Ethereum.org:
NFTs are minted through smart contracts that assign ownership and manage the transferability of the NFT's. When someone creates or mints an NFT, they execute code stored in smart contracts that conform to different standards, such as ERC-721. This information is added to the blockchain where the NFT is being managed.
Smart contracts are executed automatically once created in the blockchain and verifies that the terms of the smart contract are satisfied when the buyer and seller engages in the sale of NFTs associated with the contract.
Smart contracts are executed automatically once created in the blockchain and verifies that the terms of the smart contract are satisfied when the buyer and seller engages in the sale of NFTs associated with the contract.
Smart contracts are associated with NFT collections. Every collection must be underwritten by its own dedicated smart contract.
Token Standards
A token standard refers to a widely adopted format to configure smart contracts in a way that allows them to be easily recognized across a variety of decentralized applications (dApps including secondary marketplaces such as OpenSea and Rarible).
Non-fungible tokens utilize a standard known as ERC-721. The ERC-721 contract standard is used when each item in a collection is truly unique and includes its own token ID (in contrast to ERC-1155 which allows the minting of multiple editions of a singular token).
RareCircles supports ERC-721, ERC-721A (Random Mint), and ERC-721T (Tiered) fungibility (coming soon).
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