UNDERSTANDING CARDANO NFT STANDARDS
IN THIS LESSON
Cardano Improvement Proposals (CIPs) are the foundation of its NFT ecosystem. By defining how NFTs are created and managed, CIPs ensure a seamless experience for creators, collectors, and marketplaces alike.
Cardano's commitment to decentralization, security, and scalability extends to how it handles NFTs. Unlike other blockchains, Cardano NFTs are embedded directly into the blockchain's ledger, requiring no additional smart contracts for their core functionality. To manage this unique approach, Cardano leverages a series of standards known as Cardano Improvement Proposals (CIPs).
Cardano's decentralized approach enables the community to propose and shape the standards that govern its NFTs. All of the CIPs described in this chapter were drafted and are maintained by the community.
CIPs are technical guidelines that ensure NFTs are created, traded, and displayed consistently across the Cardano ecosystem. Think of them as blueprints that wallets, marketplaces, and other tools follow to understand and interact with NFTs.
In this chapter, we'll dive into the key CIPs that shape the Cardano NFT landscape:
CIP 25 - The NFT Metadata Standard: This cornerstone CIP defines how essential details like your NFT's name, image, and description are stored alongside the asset itself.
CIP 27 - Community Royalties: CIP 27 streamlines the royalty process, allowing creators to set ongoing royalty terms for their NFTs without complex smart contracts.
CIP 68 - Beyond Basic Metadata: CIP 68 makes NFT metadata available to smart contracts. It allows for dynamic metadata, on-chain interaction, and the creation of unique hybrid asset types.
CIP 86 - Metadata Updates: CIP 86 offers flexible ways to modify metadata efficiently and securely. It allows metadata changes for dynamic projects without the need for burning or re-minting tokens.
CIP 88 - Token Policy Registration: CIP 88 enables you to register official details, descriptions, project images and links directly on the blockchain - reducing chain bloat and decentralising token registration.
CIP 102 - Flexible Royalties: CIP 102 builds upon CIP 68. It’s ideal for collaborations as it enables complex royalty splits and customizable distribution rules baked right into your NFTs.
Why Standards Matter
CIPs benefit the entire Cardano NFT ecosystem - creators, collectors, and marketplaces alike:
Standards ensure that NFTs are authentic, their metadata is secure, and royalties flow as intended.
Marketplaces, wallets, and other tools can easily understand and display NFT information, providing a seamless user experience.
CIPs help maintain a level of consistency that enables the ecosystem to function efficiently and grow.
CIPs can evolve as new use cases for NFTs emerge, future-proofing assets on the Cardano blockchain.
By understanding these CIPs, you'll gain deeper insight into how Cardano NFTs work. This knowledge will enable you to create assets with confidence, knowing they will be recognized and supported throughout the ecosystem.