What Is A Dynamic NFT?
A dynamic NFT or dNFT is a type of NFT that can change some of its inherent properties based on external conditions. These changes are recorded and added to the NFT metadata. Smart contracts, triggered by data from oracles and other on-chain and off-chain events, cause changes in dynamic NFTs.
The constant evolution of the technology underlying non-fungible tokens has created an ideal foundation for the launch of dynamic NFTs. Therefore, the interest in dynamic NFTs and their potential for the future of NFTs is to some extent justified. In the next article, we'll cover what dynamic NFTs are, how they work, and how they differ from static NFTs. Additionally, you can learn about possible use cases and examples of dynamic NFTs.
How does It Work?
In dynamic NFTs, smart contracts provide instructions on how to change the dNFT's metadata when a trigger event occurs that is based on external data through oracles or on-chain events. First, a base NFT is created, after which smart contracts are implemented that regulate updates, unlock hidden features and functions and enhance images. These changes are conditional and only occur when the smart contract is triggered. Each smart contract can be triggered by on-chain or off-chain events, and events related to time, price, or location.
Difference between Static and Dynamic NFTs
A basic definition of dynamic NFTs gives a credible sense of relevance in the rapidly evolving world of NFTs. At the same time, it is important to note that dynamic NFTs compete with static NFTs. Each type of non-fungible token has advantages and disadvantages depending on the use case. The difference between static and dynamic NFTs helps us understand if the use cases for dynamic NFT types make sense compared to static NFTs. Will they lose their trust? The following note distinguishing between static and dynamic NFTs may provide some clarity.
Static NFTs are essentially digital assets with persistent token data. Therefore, at the cost of flexibility, security and trust are more assured. Dynamic NFTs, on the other hand, offer the flexibility to change token metadata. However, the flexibility of dynamic NFTs carries the risk of increased vulnerability compared to static NFTs. Therefore, dynamic NFTs are more suitable for use cases that require frequent data changes.
November 21, 2024 at 12:13 pm
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