What is a Dynamic NFT (dNFT)?
NFTs have taken the metaverse by storm. When Jack Dorsey’s first-ever tweet NFT sold for $2.8 million, the NFT world witnessed a huge trend. That’s what the NFT markets can achieve. From fashionable digital avatars, social profile pictures, and sports-fad collectibles to the much-hyped Beeple’s NFT art that sold for $69 million, NFTs have conquered every arena.
When CryptoPunks started the metamorphic NFT wave, NFTs have drifted beyond the PFPs and collectibles and offer a real-world experience to users. Dynamic NFT is a significant leap in the NFT world that combines the ownership of NFTs and the dynamic nature of NFT chains to evolve as an experience rather than a utility or an asset. The article aims to define Dynamic NFTs and how it has changed the landscape of non-fungible tokens.
What is a dynamic NFT?
A Dynamic NFT is a type of non-fungible token that can evolve over time, depending on factors like changes in data, user interactions or other certain other time-based conditions. When smart contracts create static NFTs, the network mints them with immutable token data. Moreover, you cannot alter the static NFTs if the asset’s information changes. That’s why dynamic NFTs came into existence. A dynamic NFT is a non-fungible token with encrypted dynamic NFT smart contract logic that allows it to update its metadata for specific external conditions automatically.
Every NFT consists of metadata representing its characteristics. For example, name, description, transaction history, and traits are examples of metadata. An artwork’s metadata is its color and accessories. To sum up, you can change a dynamic NFT’s metadata.
You can use dynamic NFT solidity to write smart contracts for NFTs. While static NFT depends on the dynamic NFT erc 721 token standard, a dynamic NFT uses the ERC-1155 token standard.
What makes NFTs unique?
The NFTs follow the guidelines of the token standards, ensuring that each NFT has a unique token ID. NFTs can represent real-world assets such as certificates, passports, property rights, crypto collectibles, and NFT art. NFTs represent an underlying asset, such as a physical asset (artwork) or real estate. Moreover, NFTs are unique crypto assets that you cannot replicate. Tokenizing these real-world assets enables buying, selling, and trading them more efficiently and reduces potential fraud.
What is a Static NFT?
A static NFT is a non-fungible token with immutable data and characteristics permanently stored on the blockchain ledger. In short, you cannot change or alter static NFTs in any way. However, static NFTs have limited usage in tokenizing real-world assets, progression-based video games, and fantasy sports NFTs, including dynamic data.
What is the difference between Dynamic and Static NFTs?
The primary difference between a dynamic and a static NFT is in their ability to change over time. While static NFTs have fixed metadata, that is not the case with dynamic NFTs as you can update their metadata after minting. But both NFTs come with their fair share of pros and cons.
While you cannot make changes to a static NFT due to them being immutable, they are more secure and ideal for stable/static data. Dynamic NFTs, on the other hand, cater to needs where adaptability is key but they do have security concerns.
Conclusion
Dynamic NFTs are undeniably a new generation of NFTs. Static and dynamic NFTs are different; dynamic NFTs are an advanced form of NFT. Dynamic NFT combines the two features of NFT: the uniqueness of NFT and its dynamic nature to integrate real-world data. DNFTs offer many benefits, such as improved engagement, better experience, affordability, and innovation.
The most distinctive feature of dNFTs is their applicability in the real world, thanks to bridging APIs like Chainlink that rendered the dynamic nature of the NFTs. Above all, dynamic NFT has immense potential and demonstrates the power of blockchain technology in the real world.