A few Twitter users have pointed out a “shocking” BAYC smart contract function, causing concern. Apparently, the function allows a certain private key holder to mint an infinite number of new Apes. What exactly is the BAYC smart contract function causing concerns now? Let’s dive in.
Firstly, What is a Smart Contract?
Put simply, a smart contract is a digital contract stored on the blockchain as a piece of code. When certain pre-established conditions are met, the contract is automatically executed. In other words, smart contracts are designed to automatically fulfill the terms of the agreement between those involved.
For NFTs, all the information of a token, such as ownership specifics, transactions, identities, and more are securely stored in a smart contract. In addition, most NFT smart contracts specify some rules and conditions for trading NFTs.
About BAYC Smart Contract Function
Early on Monday, June 6, a DeFi and NFT developer, who goes by the name foobar, took to Twitter to raise their concerns about the BAYC smart contract function.
“There is a single private key out there that can mint an infinite number of new OG @BoredApeYC at any time,” they wrote.
So, why exactly is this problematic?
As foobar explained, “If the token contract owner (a personal wallet, not a multisig) gets hacked or phished, you might see thousands of new bored apes minted and dumped onto the market.”
Unfortunately, this is not the first time users have flagged this BAYC smart contract function. In fact, back in June 2021, BAYC tweeted in response, “Obviously, we’re never going to call that function again and we’re planning on revoking ownership in the next day or two.”
Needless to say, BAYC is yet to revoke ownership.
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investment.
