What Are Dynamic NFTs? Understanding the Evolving NFT. The number of use cases and functionalities for non-fungible tokens (NFTs) has increased in tandem with the rise in popularity of these tokens. As digital assets continue to develop, there has been a surge in interest in a hitherto unexplored subset of NFTs known as dynamic NFTs. The majority of NFTs, however, are fixed, although dynamic NFTs can shift over time.
What is an NFT?
An NFT, or non-fungible token, is a unique digital token that can be stored on a blockchain and shows that someone owns a real or digital asset. Specific information about this one-of-a-kind cryptocurrency asset, like its contract address and coin ID, makes it unique from other similar ones. This means that no two NFTs are the same and can never be switched out for each other. “Contract address” refers to the spot on the Ethereum blockchain where the smart contract for the non-fungible token (NFT) can be found when talking about NFTs. Smart contracts can automatically take action when specific circumstances are satisfied without third-party intervention. A token ID is a unique number that is given to each NFT.
Static vs. dynamic NFTs
Some NFTs are static, meaning their data cannot be modified after issuance to a blockchain. An NFT of a unique artwork will preserve its digital picture and data over time and ownership. However, a dynamic NFT evolves with external conditions. The token, or a “living NFT,” can change features after an event or achievement. Gamers can program their NFT avatars to alter their look based on game progress.
GIFs and videos can also be static NFTs if the attached JPEG image or MP4 video doesn’t change. Only NFTs that can be altered after minting are dynamic. Alterations to NFT metadata can affect token appearance. The metadata of an NFT includes its name, description, traits, and transaction history. NFT metadata is usually saved off-chain as a JSON file.
Once minted, NFT token IDs and contract addresses cannot be modified. After creation, NFT metadata can be updated, although it’s complicated and time-consuming and requires code knowledge. Thus, many NFTs are static and have immutable features. This static NFT model is popular in NFT art projects, play-to-earn games, and digital collectibles. Limitations include real-world assets, blockchain-based fantasy sports leagues, and progression-based video games that update information.
How does a dynamic NFT work?
The storage of data in a manner that permits editing is essential to the operation of dynamic NFTs. The ERC-721 token standard is typically utilized for constructing static NFTs, whereas the ERC-1155 standard is used when creating dynamic NFTs. Because it can be altered in response to changing circumstances, the standard for this kind of token is frequently called “semi-fungible.” A smart contract can initiate changes to a dynamic non-financial instrument. Oracles usually send data from outside to the smart contract, changing NFT information. After that, the NFT in question will have its attributes, such as its physical look, modified.
Examples of dynamic NFTs
One of the earliest examples of a dynamic NFT is “Crossroad,” a one-of-a-kind piece of artwork produced by Mike Winkelmann, popularly known as Beeple. It was designed before the 2020 U.S. presidential election with the goal that its physical appearance will change depending on the victor. Artwork depicting former President Trump was changed after Joe Biden was sworn in as president to show him lying in a heap, clearly demonstrating how defeated he felt. Popular NFT-based game Cryptokitties is another illustration of a dynamic non-fungible coin. In this game, players can trade virtual cats with one another and even breed their own. A mutable non-fungible token (NFT) represents each cat, and its owner can update the token’s associated data. A cat’s genetic makeup, temperament, and appearance all fall under this category.
Dynamic NFTs are digital collectibles from NBA rising star LaMelo Ball. NFTs use on-chain sports data to adjust their behavior after a game. A player who finishes the season with over 1,000 points may have their NFT avatar modified. The Gold Evolve NFT would permit a dNFT redesign if Ball were NBA Rookie of the Year in 2021. The NFT proceeded after the NBA All-Star won the trophy. Regenerative Resources, which aims to turn unproductive land into productive marine landscapes, announced five exciting NFT short films in December 2021. Each short film will start with the first frame, but token purchases and resales will unlock more structures until the whole movie is shown.