We already know that there are many different types of NFTs out there:
– 3Ds
– PFPs
– NFT Land
– Music NFTs
– Game NFTs
– Food Projects
And so much more! However, there are more layers to a non-fungible token other than its type. This could be the blockchain it belongs to, the method of its release, or the terms of its smart contract. All of this brings us to a new category of NFTs: static and dynamic NFTs (dNFTs)!
So, the concept of non-fungible tokens is often lost for some people. Although it could be a representation of an image on the blockchain, it doesn’t stop there. Also, at the same time, it doesn’t necessarily have to be a static representation. In other words, it doesn’t have to remain the same throughout the entire period of its existence on the blockchain.
Yes, we say ‘existence’ because, as opposed to popular belief, NFTs can technically be “destroyed”. And thus, in essence, it no longer exist on the blockchain.
And so, this is where the idea of Dynamic NFTs comes into play. They’re different, interactive, fun, and definitely worth investing in. Part of being in the NFT industry is understanding all aspects of it. If you want to be a player, you gotta understand the game! Thankfully, we’ve actually made it a whole lot easier for YOU to get all the information you need. All you have to do is join our FREE hub for NFT knowledge! Click on the button below to check it out!
WHAT ARE DYNAMIC NFTs?
Dynamic NFTs, aka the ‘Living Tokens’ or dNFTs, are non-fungible tokens that change over time. These NFTs go through changes in their properties according to changes or additions to their metadata. Not to be mistaken with GIF or video NFTs – those are still static.
So, how do dynamic NFTs work?
Well, naturally since the entire functionality of a non-fungible token depends on its smart contract, so do the dynamics! The trigger from the on-chain or off-chain event causes the change and is executed by smart contracts. And, to be a little more technical, dynamic NFTs use the multi-token standard, ERC-1155. Static non-fungible tokens use the standard ERC-721. In a nutshell, the ERC-1155 brings together two standards: the improved ERC-20 and ERC-721. So, you get two for one!
How do you create a dynamic NFT?
- First, you create a base non-fungible token
- Then, you have to create the smart contracts governing the changes: hidden traits, extra features, or enhancements
- Also, you have to include the conditions governing these changes whether they are on-chain, off-chain, time-based, price-based, or location-based events
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DYNAMIC NFTs |
STATIC NFTs |
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– Flexible token data |
– Permanent token data |
Benefits of dNFTs
- Better engagement
- Higher demand
- Immersive and interactive experience
- More innovation and creativity
Examples of Dynamic NFTs
#1 Beeple’s Crossroad
Changed its appearance according to the results of the U.S. Presidential election 2020. The conditions were: If former president Donald Trump lost, the NFT display an animation of a bloated Trump corpse rotting in a park. If not, it would display a clip of Trump running through a hellscape in Godzilla style.
#2 The Association
These dynamic NFTs changed in both appearance and value according to the NBA player and team’s on-court performance.
#3 Otherdeeds NFT
This Metaverse virtual world changes its characteristics based on the in-game development of your own land. The more you develop your land the more value it has.
All of this makes you wonder, are dynamic NFTs more expensive and valuable than static NFTs? Well, they could be a factor affecting the pricing of NFTs. But, that all depends on the demand for the NFT community behind it and the public interest. Of course, the “changing art” is definitely a bonus. However, it isn’t always a good one.
The NBA’s dynamic factor could mean that the value of your NFT could decrease the same way as it would increase. So, it isn’t always necessarily a good thing. But, for example, in the gaming industry, it is definitely a plus! In a nutshell, you still have to do your homework before investing in any collection, even if it IS dynamic!