NFT Smart Contract Development and Audit

What is a Smart Contract?

Smart contracts can be described as digital contracts where the terms of the deal between two or more parties are set in the form of code. They are capable of verifying if the terms of the agreement have been met or not.

Smart contracts run on the blockchain, so they are kept on an open database and can't be altered or changed. Storing more data on the blockchain will be highly expensive and consumes a lot of energy and that’s why most NFTs are not stored on the blockchain. Therefore, the owner can always access the work by the link of the smart contract.

What makes smart contracts ‘smart’?

Smart contracts are chunks of code that carry out transactions automatically. These codes just check certain conditions and then perform the required action to complete the transaction, reducing the time, cost, and effort related to traditional contracts. Smart contracts are more secure, fast, and transparent as they are stored on the blockchain.

Advantages of using smart contracts

-They remove the need for intermediaries, ultimately increasing speed and lowering costs.

-They cannot be changed after being deployed on the chain, increasing security and transparency

-They can be well customizable before deployment, making them versatile for various uses.

-They are deterministic and only perform what they have been programmed to do.

-There is a chance or risk of human errors as they are fully automated.

NFT Smart Contract Development

The good functioning of the NFT marketplace solely depends upon smart contracts. NFT smart contract development brings huge opportunities for entrepreneurs and NFT investors to build their own NFT marketplace.

NFT smart contract supports the trade of various NFT digital collectibles such as:

NFT Smart Contract for Marketplace, NFT Smart Contract for digital collectibles, NFT Smart Contract for Minting, NFT Smart Contract for Stacking, NFT Smart Contract for P2P Exchange, NFT Smart Contract for Lending.

Why is there a need for an NFT Smart Contract Audit?

The smart contract audit process identifies vulnerabilities such as the following:

-Reentrancy attack: A reentrancy attack occur when a function is created that makes a call to another untrusted contract before it resolves any effects. The attack occurs in between the smart contracts, where an attacking smart contract takes over the code in a vulnerable contract to drain it of its funds.

-Integer overflows and underflows: It can occur that during the arithmetic computation of the smart contract, output surpasses the storage capacity. As a consequence, it can result in a wrong calculation of the amounts.

-Early execution opportunities: The structure of the smart contract code should be done properly. Otherwise, it can provide an early warning of the market trade. In other words, it provides information that could give the person the advantage of trade in their favor.

-The inefficiency of gas: Trading on the blockchain, there is a transaction fee called a gas fee. Some smart contracts are not optimized to reduce the expenses involved with gas fees. This results in higher transaction fees and the Smart Contract could be not executed.

NFT Smart Contract Audit Process

The best approach that can be followed to provide the audit for the smart contract.

Step 1: Specification

Step 2: Running Tests

Step 3: Running automated Symbolic execution tools

Step 4: Manual analysis of the code

Step 5: Creating the report

This approach reduces the time of the whole process by letting the audit and code fixing go parallel.

NFT Use Cases for Smart Contracts

Enforcing ownership and authenticity

Smart contracts used to buy NFTs can help to carry out ownership and confirm data. If these NFTs are listed on public blockchains, information about ownership and details can be accessed by anyone.

Preventing counterfeiting

Through NFTs, smart contracts can also help identify counterfeiting. Because run on the blockchain, smart contracts can automatically check NFT details (time and place) of creation. Smart contracts can also catch creative ownership, combat fake certificates, and help eliminate the issue of counterfeit products.

Facilitating business transactions

With smart contracts, business transactions can be improved in two ways: speed and safety

Read more: Web 3.0 Development Company

PrimaFelicitas is a top Web3, blockchain, and Metaverse development company that has extensive knowledge of NFT Marketplace Development and offers various innovative services such as Multi-chain Marketplace Design, Multi-Wallet NFT Marketplace Development, Discrete Smart Contract Development, Multi Chain Marketplace Deployment, etc.

PrimaFelicitas belongs to the league of companies proficient in developing the best NFT Marketplace Development which delights its global clientele through seamless engagement and brilliant work ethic.