Smart contracts are essentially programmes that run when certain criteria are satisfied and are recorded on a blockchain. They are often used to automate the implementation of an agreement so that all participants may be confident of the conclusion instantly, without the participation of an intermediary or time lost.
They can also automate a workflow by automatically activating the next activity when certain circumstances are satisfied.
However, there are several factors which need to be understood while using some smart contract functions like “SafeTransferFrom” .
“SafeTransferFrom”
Another popular smart contract function is SafeTransferFrom, which appears during any transaction in which you transmit an NFT from your own wallet to another wallet.
Assume you’ve just purchased a Ledger and want to transmit NFTs from your old hot wallet to the secure new Ethereum account on your Ledger Nano – you’ll see SafeTransferFrom appear on your hot wallet and will need to confirm it. This makes perfect sense in this situation.
The Best Ways to Spot Scams
A recent instance was the Momoco website giving away a free mint for its NFTs, which attracted eager degens to the site in an effort to get the mint. The issue? No mint was present.
Instead, pressing the “mint” button triggered a SafeTransferFrom call (which customers allowed, mistakenly believing it was part of the minting process, due to social engineering!). This allowed the contract permission to withdraw an NFT from the target wallet, resulting in hundreds of users losing non-fungible tokens to the fraud.
How could those people have known about the scam before falling for it?
Remember that when calling a function in a smart contract, only the action specified in the function box—in this example, a transfer from one wallet to another—will occur with certainty.
This is an immediate warning sign:
If you are minting, you should notice a function call for “minting,” not a transfer. The transaction in this instance unmistakably indicates a transfer. Additionally, the NFT is transferring from one Ledger wallet address to another, indicating that your wallet is giving the NFT rather than receiving it.
In short, rather than trusting the conditions, a quick glance at the contents of the function call – including examining the sort of interaction you’re confirming and the direction of the transfer – will allow you to validate the transaction.
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