Everything you should know about Dynamic NFT!
Living non-fungible tokens, also known as dynamic NFTs, are a new concept that proves NFTs will continue to develop and have many future applications. Here is how they work.
What Is Dynamic NFT?
Currently, digital art and play-to-earn game projects and as digital collectibles are the most prevalent use of NFTs. NFT also offer a unique value proposition for digitizing items in the real world, such as real estate deeds, patents, and other unique identifiers. However, this model is limited by the permanence of static NFTs, because the metadata attached to them is fixed once they’re minted on a blockchain.
But if you believed that meant they were static, you're mistaken. There is a whole category of live NFTs. These non-fungible tokens, also known as dynamic NFTs, may change and alter over time based on programmable features encoded by their developers.
In order words, dynamic NFTs are NFTs that can change their features and appearance based on the data they receive, unlike other tokens like CryptoPunks or Bored Apes which are static.
Static NFT: fixed metadata after they are minted on a blockchain.
Dynamic NFT: metadata can change based on varying conditions.
How Is It Different?
In simple terms, a dynamic NFT’s metadata can change based on varying conditions. For example, that can include the passage of time, interactions with other NFTs, or—more commonly—external data, including information drawn from sources that monitor real-world data, like weathervanes or real-time sports scores.
dNFTs offer a best-of-both-worlds approach, with NFTs retaining their unique identifiers while able to update aspects of their metadata. Put simply, a dynamic NFT is an NFT that can change based on external conditions. Change in a dynamic NFT often refers to changes in the NFT’s metadata triggered by a smart contract. This is done by encoding automatic changes within the NFT smart contract, which provides instructions to the underlying NFT regarding when and how its metadata should change.
Future Applications
This feature may benefit character growth in blockchain games, a fundamental aspect of many game formats. When beginning a game with a playable NFT, the NFT's basic statistics are reflected in its metadata. As the player continues to level up, the NFT's information changes to reflect the character's development.
Metadata updates are also important in tokenizing real-world assets, which often necessitates a multitude of dynamic measurements. For instance, an NFT representing a property may include its maintenance history, age, and market value, among other information. Tokenizing these mutable assets necessitates NFTs with the capacity to adapt to changing information.
While the current Web3 ecosystem mostly consists of static NFTs, a few standout projects have already kickstarted dNFT innovation.
Regenerative Resources Short Film NFTs
Regenerative Resources (RRC) is an ecosystem services provider whose mission is to convert degraded land into productive seawater landscapes.
RRC stated that it would offer five innovative Short Film NFTs created by famous artist; the proceeds will be utilized to seed and cultivate 100 million mangroves throughout RRC's existing programs.
Initially, each Short Film NFT will consist of a single frame. However, each time an NFT is purchased or resold, further frames will be revealed until the NFT holder can see the full short film.
Conclusion
Dynamic NFTs have the power to increase the design space for NFTs and take these tokens to the next level, as seen in the examples provided above. Bringing NFT to life is no longer so unreachable. Joining our community and subscribing to the Trait Sniper Newsletter to receive the most recent update: