Dynamic NFTs-Future of Digital Collectibles
NFTs have taken the world by storm. These digital artworks have attracted enormous attention from investors, including A-list celebrities, even selling for millions of dollars in some cases. The use cases of NFTs have also evolved meaningfully over the last couple of years.
They are no longer just an avenue for digital artwork; they have also been used for ticketing, charity, supply chain management, real estate and more. It is possibly the fastest evolving sector of Blockchain Technology Network. And the latest advancement in the digital asset space is dynamic NFTs.
Dynamic NFTs are a step above from the static Digital Assets we have become familiar with. They offer a new world of opportunities and use cases, where NFTs constantly change based on external events and conditions.
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In this article, we will go through dynamic NFTs, how they differ from static NFTs and their possible use case scenarios.
What are dynamic NFTs?
Every NFT has certain metadata attached to it. This data explains the attributes of the NFT. For example, the metadata of a Bored Ape Yacht Club artwork would include inforation such as the name/number of the piece, the colour of the background, characteristics of the artwork, etc.
In static NFTs, the metadata remains constant. Therefore, the characteristics and appearance of the NFT remain similar. However, with Dynamic NFTs, metadata is designed to be updated based on happenings from the real world.
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These NFTs have built-in smart contracts that gather information from oracles, triggering changes in the token's metadata. An oracle is like a bridge between on-chain code and off-chain infrastructure, allowing Blockchain Technologies to react to real-world happenings and interoperate with traditional systems.
The smart contract is set with instructions that determine when and how the NFT is metadata should update based on the data gathered from the oracle. This allows the characteristics of the NFT to change while its unique attributes and identifiers remain stored permanently on the blockchain technology.
Examples of dynamic NFTS
One of the best examples of a dynamic NFT is the 'Association' collection by the National Basketball Association (NBA). Launched in April 2022, the NFT collection features 75 dynamic NFTs, one for each player from the 16 different NBA teams participating in the playoffs. As the playoffs progressed, the traits and attributes of the NFTs would change, reflecting the player is performance like dunks, three-pointers, rebounds, blocks, and assists. The frame and background of these dynamic NFT collections were also updated based on the team is performance.
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Other dynamic NFTs include LaMelo Ball is Gold Evolve NFT and Beeple is Crossroad NFT. Both these dynamic NFTs changed their appearance based on real-world happenings.
Beeple is crossroad dynamic NFT changed based on the result of the US Presidential election, showcasing Trump is corpse rotting in a park after Biden won the Presidential election. On the other hand, the LaMelo Ball dynamic NFT depicted a NBA player dribbling a ball which turned turn into gold color when he won the rookie of the year prize.
Possible use cases of Dynamic NFTs
Dynamic NFTs could find several use cases in diverse range of industries and sectors thanks to their permanent storage and modifiable attributes. Here is a look at some of use cases across different industries.
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Real Estate
Instead of a static NFT just displaying ownership, a dynamic NFT could give a more comprehensive idea of the assets and the modifications made over the years. It could provide regular updates on the property is age, maintenance history, previous sales, etc.
Fantasy Sports
Dynamic NFTs could also be used to create dynamic sports cards that update the player is key statistics based on the player is current performance. The cards can be connected to data from sports websites and keep changing as long as the player is active.
Gaming
Dynamic Gaming NFTs are already quite popular. Whether it is an in-game purchase or artwork based on a character of the game, a dynamic NFT could update as you level up. Popular gaming providers are already introducing dynamic NFTs, and it won't be long before they switch to dynamic NFTs to give users a more customized ownership experience.
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Passports
If all passports were to become dynamic NFTs, they could be stored on the holder is smartphones, and keep getting updated with information received from airlines and government websites. This makes it more convenient at authorities, airports and even Visa applications.
Conclusion:
Dynamic NFTs are a paradigm shift in the Digital Asset space. Several upcoming projects in diverse industries are already working with this technology to launch innovative new and dynamic NFT collections. However, until now, we have just discovered the scratch of the use cases provided by dynamic NFTs. This novel kind of digital asset could unlock multiple other doors in the future, bringing use cases we probably haven’t even thought of yet.
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