Everything You Need To Know About Dynamic NFTs

Dynamic NFTs
Everything You Need To Know About Dynamic NFTs
Exodus Wallet

We’ve heard the word “Dynamic” several times now. It means that something is not static – it changes over time. In the world of NFTs, a traditional NFT is something that remains the same as time passes by. Dynamic NFTs, on the other hand, are NFTs that change their appearance over time.

The NBA launched the Association NFT Collection that fits right into the category of dynamic NFTs. In that collection, each NFT is a live player from the NBA’s 16 playoff teams and connected to the live stats of that player. 

The NFT will change based on the player’s performance and how he plays during the 2022 NBA playoffs. When it comes to visual changes, this dynamic NFT will change its emojis, backgrounds, and accessories.

More About Dynamic NFTs

Static NFTs remain the same as the data that’s registered in the blockchain does not change. When this NFT is minted, it received a unique token ID and metadata, which is permanent.

Dynamic Non-Fungible Tokens (NFTs) also receive a unique token ID, but the metadata keeps changing as per the preset conditions. 

What is Metadata?

Name, traits, videos, images, files links, or descriptions, etc., are examples of metadata. Based on external data, dynamic NFTs, unlike static ones, change the metadata. 

When the smart contract for an NFT is written, the programmer encodes some reprogrammable features to make the NFT dynamic. The change in data is autonomous as per defined in the smart contract. This way, any off-chain or on-chain external data can be linked by a developer to a fresh NFT side action.

To explain this even furter, let’s the take Association NFT for example. These NFTs are linked to on-court data. When the player linked to the NFT achieves something, the data on the NFT is updated and the NFT changes visually.

How Can Dynamic NFTs Be Used?

  1. Unlock Access to Exclusive Communities

Take, for example, the Pearproof application that allows social media creators to mint NFTs of their posts. When the posts receive more social media interaction, the Pearproof NFTs become more valuable. NFTs level up when posts are shared widely. Fans who possess these NFTs receive varying rewards based on the level of their NFTs.

  1. Blockchain Games

Similarly, in-game NFT assets can also be dynamic. The rewards increase only if players really care about their pets, all thanks to the dynamic nature of the NFTs. Aavegotchi is a good example as the game applies dynamic NFTs concepts to their game.

  1. NFTs and Fundraising

NFTs have been used for fundraising before. There were three short films that were minted as dynamic NFTs. The fundraising event was for reforestation projects – we do wanna save the planet. Each movie began as a single frame. The fundraising process was made more interesting by revealing a new frame each time an NFT was purchased until the entire movie was complete.