Dynamic NFT is the latest development in the field of digital asset ownership! Over the recent years, the applications of NFTs have also changed dramatically. They are now adopted for more than solely digital art; other applications involve real estate, supply chain management, philanthropy, and ticketing. It is conceivably the area of blockchain technology that is evolving the fastest.
We will briefly discuss about dynamic NFT in this post, its difference from static NFT, and its potential applications.
What is dynamic NFT?
The metadata in static NFTs stays unchanged. As a result, the NFT’s characteristics and appearance remain the same. Dynamic NFT is designed to update information in response to real-world circumstances automatically. They open up a new realm of potentialities where NFTs are dynamically altered by outside factors and events.
These NFTs include integrated smart contracts that take information from oracles and update the token’s metadata. An oracle functions as a link between off-chain infrastructure and on-chain programming. It enables a blockchain to respond to real-world events and interact with legacy systems. It contains directives that govern the manner in which the metadata for the NFT would adapt based on inputs from the oracle. As a result, the NFT’s properties can change while still maintaining its unique identifiers, which are irreversibly stored on the blockchain.
The NBA’s “Association” collection is one of the best examples of a dynamic NFT. Every player from each of the 16 NBA playoff teams is represented by one of the 75 dynamic NFTs in the collection, launched in April 2022. The attributes and accessories of the NFTs would alter as the playoffs went on, reflecting the player’s slam dunks, three-pointers, blocks, and rebounds. Based on the team’s performance, the frame and background of these NFTs were also revised.
Important applications of dynamic NFT
Due to their permanent archiving and modifiable capabilities, dynamic NFT could find applications across a range of industries and sectors. Check out some of these examples below.
These could offer a more thorough understanding of the property and the changes made through time rather than merely determining ownership. It could offer updates on the property’s age, maintenance record, previous sales, etc.
Gaming NFTs are trending right now. A dynamic NFT could change as you advance in the game, whether it’s an in-game purchase or artwork inspired by a particular character. Popular gaming platforms have already started implementing NFTs; soon, they will convert to dynamic NFT platform to provide gamers with a more personalized experience.
Sports cards for fantasy sports that update a player’s statistics in conjunction with their current performance might also be created using a dynamic NFT. As long as the player continues playing, the cards can be synced to data from sports websites and it can continuously change.
With the advent of dynamic NFT, the industry of digital assets has experienced a significant transition. Several projects are already using this technology to deliver brand-new NFT collections. But until now, we have barely begun to get a sense of these NFTs. Possible applications of this creative class of digital assets could result in a plethora of interesting frontiers we haven’t even imagined yet.
That’s where Algobitz comes in.
Our NFT solutions deliver the bundle of NFT Marketplace development along with NFT Whitelisting solutions, Real Asset Tokenization and Generative art NFTs.