5.3 Innovative Functional NFT

The structure of the token ID incorporates essential information about the token. Each token ID can be decoded on-chain to return the names of the endorser and the project in plain text. The token ID also includes the grade of the CDR, to enable the development of financial tools that leverage the similar value of tokens representing similar durations of carbon storage.

Carrot introduces a bit field approach to 256-bit token IDs, inspired by VLIW architectures to deliver functional NFTs. Each type of token has a similar structure, but different fields may be used differently.

Specific NFTs enable the distribution of precisely defined minting rights to NFT holders, unlike traditional approaches, which attribute minting to either EOA (Externally Owned Account) or smart contracts. This new approach decentralizes a large part of the complexity, delivering unprecedented scalability while preserving the efficacy and ease of integration of a single smart contract.