Dynamic NFTs or dNFTs are the next generation of NFTs , adding some exciting features like updating metadata to non-fungible tokens. With NFTs taking the world by storm, offering numerous opportunities to mint works of art, and holding their value in a trusted smart contract, the dynamic era is about to begin. These new types of NFTs can offer the best of both worlds , maintaining a unique non-fungible token while offering features such as metadata refresh.
The NFT sector has demonstrated its many capabilities in recent years. With many digital artists recognizing its power and offering their artwork in the NFT format, the world is seeing the many benefits. The metaverse is the next place we see NFTs playing a big role and offering a connected world. Additionally, many other industries such as real estate have seen and used the proposed value of NFTs. But there is something missing from the first generation of these non-fungible tokens. Its metadata cannot be updated.
The metadata of an NFT Development Company is where the related data is stored. This data can be the name of the NFT, its features and the address of the images, videos or other digital elements linked to it.
What is a dynamic NFT?
As its name suggests, dNFT is a form of NFT that offers dynamic features . NFTs were born to store a static form of digital creation (or the digital form of a physical thing) in a smart contract. In a nutshell, the NFT represents a digital element on a blockchain. As a result, each NFT has an immutable token ID. And the metadata for that ID cannot be changed .
But dynamic NFTs have come to change the concept. Change can happen because of many things — especially because of external conditions. The change occurs in the metadata . Developers build a dNFT and code the automatic changes into their smart contract. As a result, changes to a dNFT smart contract are based on conditions.
In the age of dynamic NFTs, NFTs can not only change based on conditions, but can also be minted based on them . When the dynamic concept enters, the possibilities will be limitless. Think metaverse games where characters and NFT creations can change based on interactions and even changes in the world. They will remain unique and stored in a smart contract, but their characteristics and metadata may change dynamically.
dNFT
Differences between NFT and dynamic NFT (dNFT)
A non-fungible token or NFT is a way of storing digital objects on the blockchain . As its name suggests, the NFT is not a token interchangeable with another. It is as if they are identical physical things that may even resemble each other, but cannot be interchanged with each other.
Each NFT is connected to a smart contract that makes it unique . A set of codes is used to create an NFT and connect it to a unique ID that sets it apart from others.
Most people are familiar with NFTs through pictures and artwork. The real NFT is the token’s code and ID , and the image is only attached to that code. This creates the feature of having a token that represents a digital object.
The ID of the NFTs cannot be changed. Consider digital works of art that are sold in the form of NFTs. in fact, the property of a work of art and the image that is attached in the description is sold . But in NFTs, the metadata can change.
Using the concept of NFTs to tokenize items that progress in the real world is somehow impossible. For example, a static form of NFT cannot represent an aging item because the metadata continually changes. But a dynamic NFT consists of metadata that can change based on conditions. As mentioned above, automatic changes can be coded into an NFT smart contract that dictates when and how the metadata changes.
Developers and designers who mint NFTs strive to offer a token that shows changes . In simple terms, dynamic NFT is programmed in some way so that end users and owners can easily see the changes that occur based on various conditions.
Dynamic NFT Use Cases
As mentioned above, dNFT is very useful for creating NFTs that undergo progress, aging, changes based on weather conditions, etc. , taking into account metaverse games and worlds . This progression is somewhat rewarding for the player. By using dynamic NFTs in games, we can see characters evolve and grow as the game continues or the player accomplishes something.
Another use case for dNFT is in real world assets that change over time and need a place to store the changes. Consider real estate that is held as an NFT Generator. The metadata of this NFT has a lot of information like the address, the area, and more. But a dNFT can store maintenance and upgrade history as well . In addition, past prices can also be saved to a dNFT.
Another great example is digital identity . Consider that your passport becomes a dNFT. You can travel without having to carry a piece of paper in your pocket. It updates automatically every time you travel.
The NFT sector has shown many capabilities to tokenize many items . It has shown digital artists the opportunity to maintain ownership of their creations on a secure network. In addition, it has helped the play-to-earn games industry to promote and offer new benefits. All of these benefits lack one thing which is updatable metadata. Traditional NFTs store static data and cannot be updated. Therefore, the dynamic NFT movement has come to solve this challenge.
A It can change due to real world conditions or even be coined based on them. We can expect dNFTs to usher in a new era, especially in the metaverse sector, P2E gaming, and tokenization of real-world assets.
