In today’s article, we will talk about the dependency between smart contracts and NFTs and how their conjunction solves the issues of orders and copyrights. In the further part, we will raise the topic of the order distribution market in Candao. We invite you to get a fresh portion of technological knowledge.
Relation between smart contract and NFT
We can define smart contracts as code written in the blockchain to keep data transparent. NFTs are directly dependent on smart contracts, which are the source of. From a strictly technical standpoint, smart contracts are created based on “if/then” and “when” instructions are stored as code in the blockchain. When they are run by the computer’s network, operations stored in code can only be done if the code requirements are. NFT is based on intelligent contact, whose core code establishes the features and adds them to a dedicated blockchain, where the non-fungible token is stored. The process of NFT creation is called “minting”.
How NFT, in conjunction with smart contracts, solve the issues of orders and copyrights
As we mentioned before, NFTs have an authenticating function, are immutable, and cannot be divided into smaller parts. The user’s transactions, which were verified via Candao ID using NFT, and the history of transactions from the wallet before are fully saved and transparent for other Candao members.
Before we move further, let’s be clear about one thing. Copyrights and rights to own are not the same things. They can be if it was established in the agreement before. From the point of view – the third person, you can quickly know which side of the transaction holds the copyrights or rights to own due to the blockchain. Thanks to the described conjunction, there won’t be a situation where the transacting side that bought the property rights assigns the copyright to itself. It is crucial in times of unlimited possibilities of acquiring the results of others’ work. It is the greatest NFT utility, but its potential is much broader. There are many more fields where you can take advantage of it, e.g., managing the supply chain.
The potential of the order distribution market in Candao
In Candao every member has an opportunity to generate personal tokens (PT). Those are the fungible king of assets, which you can take advantage of, e.g., promote your personal brand. You can easily create personal tokens using CDO. It is a simple process of creating a liquidity pool. You need to specify how many CDO need to be used to create the pool. PT can be personal tokens that can be bought and sold. Their value is market regulated – the price is a function of supply and demand. The whole mechanism is governed by the balancing method you may be familiar with from Uniswap.
Avoiding the unhealthy speculation
Candao is pursuing to avoid the unhealthy speculation on PT, e.g., when the central part of the supply is bought by one big player (whale). We inserted limits of amounts for the exact PT bought by one member. We created the levels of verification with the limitations of purchased PT. The maximum amount The maximum number of PT tokens that can be stored in one wallet is:
- 1% for Standard NFT ID
- 5% for Bronze NFT ID
- 10% for Silver NFT ID
- 15% for Gold NFT ID
A single PT token buy/sell transaction may not involve more than 5% of the total supply. There is more. To protect from trading bots immediately buying assets, we launched small fees in CDO of 0.3% ( subtracted from PT tokens purchased or CDO tokens received for their sale).
Personal token name
PT is connected with the NFT ID of its owner. Candao is taking advantage of this conjunction to read the current parameters of the NFT ID account from which they originated. Therefore, the PT token name displayed in the Candao ecosystem is represented as the NFT ID account name.
Preemption of personal tokens
We considered many scenarios. The next is the hypothetical situation when PT owners couldn’t take advantage of selling them. In Candao they can still buy and share their tokens ( remember, there are still anti whale limitations).
The original owners of PT tokens have the right to acquire them at the lowest possible price. Therefore, they may reserve the right of first refusal to purchase 5% of the PT supply in the liquidity pool. If they choose to use this option, their purchase transaction will be processed when the PT liquidity pool is created.
The solutions applied by Candao have a common denominator. They positively affect each other to take the best advantage and maximize their potential. This increases transparency and security, which directly translates into user comfort. Candao understands the problems of today’s digital reality, diagnoses them, and finds a solution tailored to your needs. We are striving to improve the tools continually.