Welcome back to another article about Nft’s.
By now you should be familiar with what Nft’s are all about, if not then go on right ahead and check our other articles about Ntfs on our website.
In this post we’ll be diving deeper into Nft smart contracts.
What are smart contracts?
Smart contracts are like normal contracts in the real world, the only difference is that they are digital.
Smart contracts are basically small computer programs stored in blockchains.
Here’s a short video explaining smart contracts.
How do smart contracts work:
Like the video we just watched explained, smart contracts do not require a third party to operate.
A smart contract is created for example for a fundraising purpose, the smart contract holds the funds until a certain goal is met.
If the goal is fully funded then the money the supporters gave gets transferred to the creator of the fundraising.
But if the project fails to meet its intended target then the money is automatically transferred back to the supporters.
With blockchain technology everything is distributed and no one is in control of the money.
Why should we trust smart contracts?
In our previous posts we learned that blockchain technology is very secure and nearly impossible to temper with.