A smart contract is a digital contract stored on the blockchain that gives an NFT its value. All of the information about your NFT (its cryptographic fingerprint, digital image, NFC chip information, assigned royalties and co-creators, etc) is stored in the smart contract. Unlike contracts in the real world, a smart contract’s terms are executed automatically when certain conditions are met (like, say, paying out royalties after a sale). And because they exist on the blockchain, they are secure and public.