Non-fungible tokens (NFTs), which are unique digital assets that represent in-game items, are the primary drivers of blockchain technology in gaming.
Smart contracts are used to assign ownership and manage the transferability of NFTs. When traders create an NFT, the executed code is typically stored in smart contracts that adhere to ERC-721 standards.
This data is saved in the blockchain protocol, which is where the NFT is managed.

Smart contracts and NFTs (non-fungible tokens) are key innovations in blockchain technology. Smart contracts are self-executing digital agreements coded to trigger actions automatically when conditions are met. They remove the need for intermediaries, ensuring faster, secure, and transparent transactions. NFTs are unique digital assets stored on a blockchain, representing ownership of items like art, music, collectables, or virtual real estate. Smart contracts power NFTs by managing their creation, ownership transfer, and royalties. For example, when an NFT is sold, the smart contract can automatically pay the original creator a percentage. This combination has opened new possibilities in gaming, digital art, and decentralized applications, allowing creators and users to interact and transact in more secure and automated ways.