Dynamic NFTs: Features and Use Cases

The rise in popularity of non-fungible tokens (NFTs) has led to a growing number of use cases and functions. Besides static NFTs, there is a new category of NFT: dynamic NFTs or also known as DNFTs. 

DNFTSs are generating discussions, and it seems to have great potential to create new possibilities for digital assets. Let's explore what its features are and why it sounds promising.

What's the difference between Statics and Dynamics NFTs?

Static NFTs, currently the most common type of NFTs, are immutable and fixed in nature, which means that once a token is minted to a blockchain, the data associated with that token cannot be changed. On the other hand, dynamic NFTs are a type of NFT that can change based on external conditions.

Static NFTs:

• Immutable: Static NFTs cannot be changed or modified once created. This provides a higher level of security and verifiable proof of ownership.
• Interoperable: Static NFTs work with many existing protocols and systems with no problems.
• Suitable for fixed assets: Static NFTs are best suited for assets that do not need frequent updates or modifications, such as digital identification documents, works of art, or collectibles.
• The metadata of a static NFT can be modified after it has been minted, but doing so can be a difficult and time-consuming procedure that requires knowledge of the code.
• Static NFTs are widely used in NFT art projects, play-to-earn games, and digital collectibles. The specific JPEG image or MP4 video linked to the NFT cannot change once it's minted, but the metadata can. 
• Static NFTs are usually created using the ERC-721 token standard.

Dynamic NFTs:

• Customizable: DNFTs can be modified or updated even after they have been issued, making them ideal for applications that require frequent data updates and modifications.
• Suitable for real-world assets: DNFTs can be used for assets whose location and ownership are subject to change, as the new owner can update the token information to reflect changes in ownership.
• Improved user experiences: DNFTs offer flexibility in terms of content generation and dissemination, opening up opportunities for improved user experiences and longer interactions with the NFT.
• DNFTs can be altered after they are minted, and the alteration occurs in the NFT's metadata, which can also reflect in the appearance of the token.
• DNFTs use the ERC-1155 standard (sometimes referred to as "semi-fungible") because it can be changed if required.
• The metadata of a DNFT can be updated easily and frequently, making them ideal for projects that need to regularly update aspects of their metadata.

For example, DNFTs are suitable for assets in the real world (blockchain-based fantasy sports leagues, progression-based video games, etc.) that are likely to change in terms of location and ownership.

Some Dynamic NFT Applications

NFTs have been creating a buzz in the world of blockchain technology. Recently, Dynamic NFTs have emerged as a new frontier in the development industry with a wide range of potential applications. Some of the areas of use are: 

Sports: Instead of creating new NFTs every time a player's stats change, providers can use Dynamic NFTs to represent players. These NFTs can be updated in real-time through a web API connected to a blockchain oracle. This enables a more engaging and immersive experience for players and fans, creating new opportunities for interaction between fans and players. The Tom Brady 2022 Season Ticket NFT, created by Autograph, a token platform, is an excellent example of how NFTs are revolutionizing the sports industry by offering unique and engaging experiences to fans.

This NFT is designed to change its media each week based on Tom Brady's on-field performance and statistics. Holders of the NFT receive exclusive rewards and access throughout the season, including Brady merchandise, special guest broadcasts, messages from Tom Brady, watch party token gated access, and discounts to TB12.

Gaming: Particularly in the growing play-to-earn sector, dynamic NFTs enable users to modify the characters based on weather conditions, age, and other factors. This new approach adds a level of flexibility and interactivity. For example, in Dream Quest, a role-playing card game, players can earn items through quests, events, and tournaments and participate in card battles with other players using DNFT game cards. This incorporation of NFTs adds excitement and allows players to own their in-game assets. 

Art: Digital art is a fascinating application of dynamic NFTs, as it allows for constant changes and evolutions based on changing conditions. This opens up new possibilities for showcasing digital art uniquely and innovatively. 

For example, Botanica is a project involving a collection of dynamic NFTs of plants that grow over time and change with the seasons.  

Heterosis launched a collection of Dynamic NFT flowers on March 8, created by artists Mat Collishaw and Danil Krivoruchko, who wanted to create unique art in the metaverse. These NFT flowers are reproducible and customizable by the owners, who can then create a hybrid species from the catalog of available flowers.

Final Thoughts 

Dynamic NFTs are an exciting new development in the world of blockchain technology. They offer increased flexibility and customization, making them suitable for a wide range of applications, some of them shown in this article. 

With the potential for real-world asset representation and improved user experiences, the possibilities for dynamic NFTs are limitless. As the industry continues to grow, it will be fascinating to see how developers and creators use this technology to create unique and engaging experiences for users.