Why Formulate a Smart Contract and Mint an NFT for Business Success?

Formulating a Smart Contract and Minting an NFT

B2B. SaaS. These common abbreviations are bordering on business buzzwords. What about NaaS (NFT as a Service)?

If you have questions about how NFT services are changing investment landscapes, you’re not alone. It can be difficult to wrap your brain around all the cyber jargon associated with crypto and NFTs.

So how can you make an informed decision about an NFT launch for your business? All it takes is a little vocabulary lesson and assistance from the right sources. Keep reading to find out more about minting an NFT, making a smart contract, and the benefits of NFT as Service providers.

What Are NFTs?

NFT stands for Non-Fungible Token. NFTs are one-of-a-kind digital pieces of information attached to an item of any kind. NFTs are created (or minted) by blockchain technology.

NFTs minted with Ethereum blockchain technology can never be altered or changed. An NFT’s code is permanently recorded on the blockchain once it is minted.

NFTs can be art, photos, or even music. A digital picture of a cat, for instance, can be replicated by copying and pasting. However, only one of those pictures is the original NFT.

Why Are NFTs Popular?

Scarcity creates exclusivity in the NFT market. Market value is determined by demand. The more people want something, the more expensive it becomes.

NFTs Are Unique

Many NFTs are ordinary objects with a unique code attached to them. Consumers love the idea of exclusivity; there’s only one out there, and it’s mine. Because each NFT contains a unique one-of-a-kind barcode, it’s exclusive.

Kings of Leon Case Study

On March 4, 2021 The Kings of Leon released their album entitled When You See Yourself. The band made history with the album’s release as the first ever album only available as an NFT.

Consumers could select from three different album NFT options:

  1. A vinyl copy of When You See Yourself (mailed to you), digital artwork, and all songs via digital download.
  2. A golden ticket experience
  3. An audiovisual package with custom art

The NFTs were only available for a limited time. The band sold only six golden ticket experiences. After March 19th, 2021, all unsold vinyl copies were burned. Album ownership is now exclusive to fans who purchased them as an NFT package.

Why Did It Work?

In less than a month, The Kings of Leon made two million dollars with their NFT album sales. A restricted purchase timeline and limited available NFTs created market scarcity. The band kept the basic album package at an accessible $50 but charged considerably more for extras.

The When You See Yourself album is an example of how NFTs gain and retain value. Only a few people are allowed to own it; after supplies are gone, they won’t replenish. So, only a limited number of people in the universe can claim they own the very first NFT music album.

Can Anyone Create and NFT Launch?

You don’t have to be a big name label to create NFTs. Not all NFTs carry value, either. If the number of individuals in an NFT marketplace outweighs the number who own the NFT, it doesn’t carry much value.

If there are four or fewer market members with that NFT, now you have value. Here’s a closer look at minting an NFTs.

What’s Involved in Minting an NFT?

Minting an NFT involves an advanced understanding of blockchain technology and sophisticated equipment. Unless you’re an expert in NFTs, blockchain, and developmental environments, it’s a good idea to contract with a NaaS provider to help with your NFT launch.

Get a Smart Contract

All About NFT Smart Contracts

Minting NFTs requires a smart contract. A smart contract isn’t a legal agreement like a traditional contract. Rather, a smart contract is a piece of software responsible for creating the code which becomes an NFT.

Smart Contract Regulations

Smart contracts adhere to regulations and standards laid out in ERC-721. ERC-721 dictates that each NFT minted with a smart contract must contain a globally unique identifier. This address or code tells what the NFT does and where it is located on the Ethereum blockchain (data ID).

Smart Contracts: How they Work?

What to Include in Your Smart Contract

Smart contracts should include code that sets a rule for how many NFTs you can mint in each collection. It should also include a limit on how many you can mint at a time.

How much will your NFTs cost? Your smart contract will communicate how much Ethereum is needed to buy one NFT. When minting an NFT, the base token URI regulates whether or not this item can be changed or altered in the future. The base token URI allows a user to access the minted NFT(s).

An NFT contract outlines who owns the NFT. It should also state who created your NFTs, smart contract, and parameters surrounding the minting, ownership, and sales.

Gas Fees

Rogers and Hammerstein famously wrote, “Nothing comes from nothing, nothing ever could.” The same applies to minting NFTs. NFT minting may be a digital process, but it still requires materials to begin.

If you elect to create your own smart contract in your NFT minting, you’ll be required to pay gas fees. Gas is the amount of energy/resources it takes to mint on the Ethereum blockchain.

Mintology has created a new, gas-free minting technology. This exclusive method removes a common barrier to minting: gas fees.

A Strong Smart Contract

Blockchain technology is considered secure, but it is still hackable. Here are a few tips to make sure your smart contract is strong.

Choose the Right Network

Ethereum is the strongest network for smart contracts. Connecting the Ethereum network is the first step to creating a smart contract. Next, you need to make sure your code is written in a secure way.

Your smart contract should have provisions preventing re-entrancy and other security measures.

Choose the Right Manager

Once you’ve worked with your contractor to create a smart contract, someone has to check in on it. Make sure the service you’ve hired will also maintain your smart contract.

Choose the Right Professionals

Hiring someone to manage your NFT as a service can increase your company’s ability to use NFTs.

Here are a few things good NaaS professionals should do:

  • Use the Ethereum network. It’s the most secure and the best for NFT minting.
  • Create ERC-721 compliant smart contracts and manage them after they’re created.
  • Provide security
  • Help you scale your business through NFT minting
  • Offer a connection to an NFT marketplace

Before you sign that contract, make sure you’re dealing with professionals who know what they’re doing. Ask for references or case studies from previous clients.

Gas Free Minting of NFTs on Ethereum from an API

NFT Minting and Your Business

So what does NFT minting have to do with your business? How can you benefit from minting NFTs? You don’t have to be The Kings of Leon to use the power of a good NFT strategy.

NFT Tickets

If you’re selling tickets for concerts, events, or raffles, you can use the power of NFT minting to improve your consumers’ experiences. Minting virtual tickets as NFTs creates an opportunity for your consumers to

NFT tickets give consumers something tangible by providing a QR code they can keep forever. Transactions are secure on the Ethereum blockchain and each ticket is truly one-of-a-kind. Consumers won’t have to worry about someone else stealing their paper tickets.

Creating a smart contract for NFT ticket minting ensures tickets will only sell for a predetermined amount. Ethereum blockchain network prevents third party re-selling.

Earnings Distribution

Consider an NFT smart contract as a way to distribute investment earnings. Investors get their earnings via automated NFTs once smart contract permissions are met. Shareholders and fractional investors can find assurance in the security of Ethereum’s blockchain network.

Shares and profits could further increase in value if there is a limited number available. NFTs’ market liquidity makes transactions fast, no more waiting for red tape or extra regulations to reinvest or cash out.

In-Game Purchases

The US 2020 online gaming industry pulled in $165 billion. Clearly, there’s money to be made (and spent) in this growing market. Minting NFTs for game currency is a secure way to offer in-game or in-platform purchases for your users.

You can offer an exclusive currency for specific games or entire platforms. NaaS providers can set up smart contract permissions for each NFT. This means there can only be a set amount and users need to meet certain permissions/conditions to buy/sell/transfer.

Boost Your Brand With NFT as a Service

Mintology — Our Customers

Your business has a brand to uphold and protect. NFT minting can help boost your brand and improve the consumer experience. Most consumers value brands based on trust, authenticity, and user experience.

Minting your own NFTs creates exclusivity within your brand. Your consumers are the only ones who own that specific NFT. Your NFTs are secure, and transactions are transparent on the Ethereum network. Transactions are fast, giving users a great experience.

Best of all, you are in complete control of your brand. With a smart contract and the right NFT as a Service provider, you can set permissions and parameters regarding your NFTs.

Let Mintology help you get started with your next smart contract. Our solutions enable your business to harness the power of NFT minting. Partner with us today to find out how to take the hassle and extra cost out of NFT minting.

First Published at: https://www.mintology.app/blog/formulating-a-smart-contract-and-minting-an-nft

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Official Medium-account of Mintology.app. We’re an enterprise NFT as a Service solution provider to companies of all sizes. Check https://www.mintology.app/blog