With the growing craze for NFTs, NFT smart contracts have come to the spotlight for a while now. Smart contract solutions have become an integral part in NFT buying and selling processes around the globe.
Not only do they help in maintaining the proper agreement during the NFT buying and selling activities but also are highly useful being self-executing in nature. As stated in a recent market report, the global NFT market is set to grow by $147.24 billion from 2021 to 2026 while growing at a CAGR of 35.27%.
With this fast-growing NFT market, the usage of NFT smart contracts is also increasing rapidly which has made its application widespread across various sectors. The origin of smart contracts is dated back to 1997 when Nick Sabo, a computer programmer first mentioned it in a paper.
However, smart contracts came into play in 2014. With more people being aware of its advantages, it has become highly adopted in various sectors - arts to real estate. But how do write NFT smart contracts, or what are the top smart contract solutions? In this blog, we will guide you through all of that along with the top NFT smart contract examples. So, let’s get started!
What Is an NFT Smart Contract?
An NFT smart contract is defined as a mechanism to establish a sale agreement during an NFT buying and selling process. It refers to a computer program stored in the blockchain and capable of giving automated responses when some specific conditions are fulfilled.
An NFT smart contract basically takes place between an NFT buyer and seller to ensure that all the relevant terms and conditions of the agreement are maintained and followed. One doesn’t need to put additional effort to know how to write NFT smart contract or create it from scratch.
All you need to do is utilize it to assign and transfer the proper ownership. NFT smart contract solutions help in assigning and confirming the ownership of an NFT and help with transferring the same during an NFT buying and selling process.
No matter what type of NFT is being sold and bought, arts, music, memes, or real estate - NFT smart contract solutions are pivotal to making the entire process more authentic, ensuring the proper transferability of the relevant ownership, and avoiding any possible disputes during or after the process. But that’s not it, there are even more advantages of NFT smart contract solutions. Next, we are going to discuss the importance of NFT smart contract solutions.
Importance of NFT Smart Contract Solutions
NFT smart contract solutions play a crucial role in any NFT buying, selling, or ownership transfer process. But there's more. Here we are going to discuss the importance of NFT smart contracts.
1. Well-Defined Buying and Selling Process
One of the top advantages of NFT smart contract solutions is - it makes the NFT buying and selling process more well-defined. Which party will create the smart contract, how it will govern the NFT sales - in the initial and secondary market/markets, on which blockchains the NFTs will get launched, and others - NFT smart contract solutions help in defining all these important factors resulting in a well-defined workflow for NFT buying and selling.
2. Higher Transparency
Transparency is required in any NFT transaction to ensure that the purpose is served and the NFT transaction is done as per the requirements. An NFT smart contract is highly significant in deciding the rights, ownership, and other relevant details and their transfers.
NFT storing, NFT modifying, NFT purchase enabling these all actions, and the relevant authentication and permission - these all are managed and ensured by NFT smart contract solutions to make any NFT-related activity transparent and bypass the hassles of any possible ambiguities.
3. High Security
NFT smart contract solutions offer a high level of security while dealing with NFTs. An NFT smart contract helps ensure that only the authenticated entities are performing certain tasks and NFT-related activities.
This in turn reduces the risks of NFT cyber threats. Statistics say that NFT hacks caused a global loss of $52 million in the first four months of 2022 itself. The introduction of smart contract solutions is definitely intended to lower the high number of NFT threats as well.
Top Real-life NFT Smart Contract Examples
Now that you have a better idea of NFT smart contract solutions, let’s give you some real-life NFT smart contract examples. Here’s a list of the top NFT smart contract examples from diverse sectors.
The introduction of NFTs has transferred the fashion industry dramatically in recent years. The NFT smart contract examples in this sector are relevant in terms of creating unique designs, items and fashion stores that will be impossible to copy.
At the same time, NFTs in fashion have paved new paths to earning Digital Arts
One of the most prominent real-life NFT smart contract examples is NFT smart contracts for digital arts. Such NFT smart contract solutions are highly useful for the artists who want to create NFTs for their digital arts and own the related copyright and prevent any type of duplicity, unauthentic access, or copying.
An NFT smart contract ensures all these while allowing the original digital art creators to earn royalties and make money by selling them with proper ownership transfers. Such NFT smart contract examples are relevant in the NFT marketplaces like OpenSea, Raible, Mintable, and SuperRare, to name a few.
2. Gaming & Sports
Gaming & sports smart contract solutions are another famous types of NFT smart contract examples that help in representing the in-game unique items. This type of smart contract is one of the most used NFT smart contract examples that ensures the ownership of each of the in-game items and protects them from any chances of duplicacy.
It also lets the users buy such items while transferring the ownership properly. Furthermore, athletes and sports organizations can create their unique digital souvenirs and utilize them according to their requirements such as monetization, offering exclusively to their fan base and others. Some of the use cases of such gaming NFT smart contract solutions can be seen in NFT gaming like Axie Infinity, NBA Top Shot, Sandbox, Decentraland, and others.
Ticketing is one of the key use cases of NFT smart contract solutions. NFTs, due to their unique characteristics, can be used in various types of ticketing such as event tickets and passes, bus and metro tickets, parking passes, and other types of tickets.
As NFTs are convenient to assign unique IDs, and the tickets and passes with scanners to check their authenticity, this type of NFT smart contract solution is high in demand in this sector. Some of such NFT marketplaces relevant to such NFT smart contract examples are SeatlabNFT, YellowHeart, Wicket, and Guts, to name a few.
4. Music & Entertainment
The application of NFTs in the music and entertainment sector is well-known and hence this type of NFT smart contract solution is one of the most popular NFT smart contract examples. Be it creating dedicated NFTs for certain music content or offering an on-to-one music experience to the fans or end-users, NFTs in the music & entertainment sector are subject to witness even higher demand in the coming years. Some of such popular NFT marketplaces relevant to this type of NFT smart contract examples are Binance, Royal, Raible, and OpenSea, to name a few.
Undoubtedly real estate has emerged as one of the most well-known use cases for NFT smart contract examples. This refers to representing virtual lands on a blockchain network.
NFT smart contract solutions are applicable here as it helps in ensuring the proper ownership transfer as per the relevant information of an NFT land such as the ownership details, price, location, and other specifications. One can buy such land on a real estate NFT marketplace and utilize it for various purposes including doing business on such virtual lands. Such NFT smart contract examples are applicable in the real estate NFT marketplaces like Cryptovoxels, SuperWorld, Upland, and AtomicMarket, to name a few.
by selling such items with the proper NFT smart contract solutions. With the increasing craze of buying and selling such NFT items, such NFT smart contract examples are set to get more recognition in the coming years. Some of such NFT marketplaces relevant to such a smart contract NFT example are Digitalax, BNV, and The Fabricant, to name a few.
Finance, especially trade finance is one of the key use cases of NFTs as well as NFT smart contract solutions. Be it buying or selling, performing transactions, or establishing secure and scalable financial mechanisms, these types of NFT smart contract examples are what is taking trade finance to a whole new level. Some of such NFT marketplaces where NFT smart contract solutions come to play are NFT Finance, PancakeSwap, and others.
The day is not far when NFTs will take over the voting process due to their unique characteristics and the property of remaining unaltered. An NFT-based voting process can reduce the hassles of checking the unique ID cards and keeping the whole voting process authentic. Such NFT smart contract examples are what will also minimize the chances of cheating or fraudulent activities during voting.
The prime usage of NFTs and NFT smart contract solutions in the academic sector is to represent, check, and authenticate various academic credentials including degrees, skills, certificates, unique IDs or roll numbers, and other details stored in the blockchain network. Not only does such an NFT smart contract keep the relevant information unaltered and secure from hackers but also lets the details get checked easily as and when required.
With the rising inclination towards NFT minting, buying, and selling, the popularity of NFT smart contracts is rising high. The day is not far when NFT smart contract solutions will take over the processes of transferring ownership or executing operations as per the permissions granted.
The above information will help you have a crystal clear concept of the NFT smart contract examples in diverse use cases and utilize them as per your requirements. However, it is recommended to do your own bit of research and analysis before making a decision.
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