Dynamic NFTs are a category of NFTs that are subject to change under certain conditions. Each NFT contains information called metadata, which includes the characteristics of the token. For example, metadata can contain names, descriptions, and even specific NFT features. For example, game NFT metadata includes a character’s characteristics, strength, or stamina. The metadata of NFTs representing works of art will include colors or a description of the work. An example is the Ethereum-based CryptoKitties game, one of the first NFT projects that quickly gained popularity after its launch in 2017. CryptoKitties is a blockchain game where players can collect, breed and trade dynamic NFTs in the form of virtual cats. Unlike static NFTs, the metadata of dynamic NFTs can be modified and visually reflected in the token. This functionality is built into the code of the token itself: static NFTs are usually created based on the ERC-721 token standard, while dynamic NFTs are based on the ERC-1155 standard. According to Ethereum, tokens of this standard have similar characteristics to fungible ERC-20 tokens and non-fungible ERC-721 tokens. As such, ERC-1155 tokens are technically semi-fungible and can be changed if needed.
These tokens work like this: a smart contract creates dynamic NFTs with a set of metadata. Smart contract receives data from oracles. These are third-party services that provide information from external data sources such as the internet of things (IoT) and application programming interface (API). The smart contract evaluates the NFT based on data received from the oracles and makes changes to the token code. Dynamic NFT specifications continue to be updated as needed.
If the concept of blockchain-based identity comes to fruition, dynamic NFTs will be used to represent digital identities or passports. The flexibility of these tokens will allow data to be automatically updated without the need to create new digital identities. Dynamic NFT metadata can include place of residence, marital status, contact information, and more.
The ERC-1155 token standard is mainly used to create gaming NFTs, which is why dynamic NFTs are most often found in blockchain games. Dynamic NFTs enhance the gameplay and can be used to level up characters and reach new levels. As the user progresses in the game, changes in the appearance and statistics of the character will be reflected in the corresponding
The concept of game progression is very important as it guarantees player engagement and retention, which is also facilitated by dynamic NFTs. These tokens can make it easier to develop non-linear or co-op games that require external data.
While real estate tokenization is no longer a new concept, static NFTs cannot reflect changing factors such as real estate price, construction age, and current ownership. Dynamic NFTs, on the other hand, have the flexibility to update specific information and can reflect a variety of real estate data.
An example is the traditional Japanese art form called wabi-sabi, which focuses on the transience and change rather than the permanence of the things around us. Because of this, it is highly regarded throughout the world. Dynamic NFTs will allow digital artists to use real-time data to make changes to the code of their work, thereby making them more fluid and more unique. For example, there are artworks in the form of dynamic NFTs that change in appearance depending on the current weather or season.
NFT art can also be high if it imitates real art installations and exhibitions where connoisseurs of beauty gather. In this case, dynamic NFTs can change depending on the interaction of the owner of the token and attract visitors to digital art exhibitions. Finally dynamic NFTs are more advanced than static non-fungible tokens as they can reflect changing information from the outside world in real time. In addition to the tasks mentioned in this article, there are a huge number of use cases for dynamic NFTs that can satisfy any user’s need to modify and transform NFTs. Don’t forget to follow us on our Telegram channel and let us guide you through the most exciting and important news of the crypto world!