Good day everyone,

I hope you are all well and had an excellent weekend, welcome to CryptoGod-1's blog on all things crypto. Today I will be doing a write up on a very interesting topic known as Dynamic NFTs. By now everyone is most likely aware of what a NFT is and how the market works. I will be looking at a form of NFT which is changeable, and some of its use cases in the world of NFTs.

What is a Dynamic NFT (dNFT)

A dynamic NFT is a fairly new trend taking over the NFT space. They are an updated and improved version of the original idea of a Jpeg or still image / video / sound recording for an NFT. The reason why they are viewed as an improvement is purely because they are NFTs which can change and be updated as time goes by. No longer will your NFT be the image your purchase on Opensea.io or other markets. Instead, it will be a living item which can change due to certain variables and conditions being met.  

How do dNFTs work?

All NFTs are created with information which describe them. This is known as the metadata, and it contains the characteristics of the NFT. Original NFTs do not allow the Metadata of the NFT to change once it has been minted, meaning it is saved exactly how it was created forever more on the blockchain. 

Things included in the metadata are:

• General fields are fields like names and descriptions.
• Specific fields can be the shape of the mouth, outfit, level of stamina, etc.

The beauty of a dynamic NFT is that it can change its metadata thanks to the use of smart contracts. Certain conditions, which are written into the smart contract, must be met before the NFT can change, which gives a level of security and accountability to the dNFT. This is done via the smart contract leveraging oracles to access off chain data sources which can be the likes of web API and IoT data. This will allow the dNFT to update and change based on the information it has received.

Dynamic compared to Static 

As mentioned above, a Static NFT is the original concept of NFTs which nearly everyone should be familiar with by now. This is a token with permenant and immutable traits which are recorded on the blockchain. A common example would be the Bored Apes Yacht Club. It can be more than just an image though, as Static NFTs can be images, videos, music, items in a game, etc. Many are part of an overall larger collection, while some are also just made as a one of one item.

Dynamic NFTs meanwhile can be so much more. They have the capability of being the same image, video, music, item in a game, etc, but also have the ability to evolve. This is the future of the blockchain space. The dNFTs have the ability to take inputs from both off-chain and on-chain data sources to alter the metadata of the tokens. Therefore, the main difference between a static and dynamic NFT is the ability of the token’s metadata to change. 

The fact of it is that there are proper use cases for both dNFTs and traditional Static NFTs. Neither one should be aiming to replace the other, instead they should and will both be working in harmony and tandem throughout the world.

Use Cases for dNFTs

Below is a breakdown on a selection of use cases for dNFTs. The list is far from exhaustive, in fact it is very minimal. It is just to showcase a couple of ways dNFTs can be used and integrated into the world.

Passports

A dNFT could be the future of international travel. Currently there is a lot of paperwork associated with travel in terms of passports, Visa's, stamps, etc. Imagine if all that could be stored and updated in real time on the blockchain. You decide to visit a different country. You produce your passport as a NFT. Your passport photo can be regularly updated along with your key information with the requirement of issuing a new document. More importantly, so can your Visa's and stamps. Instead of a book full of stamps, you will forever have a digital record which updates as soon as you have been issued your Visa and entered / exited a country.

NFT Sports Cards

Sports cards have always been a very popular trading mechanism for sports fans. Traditional sports cards would be set off a specific season and team which a player represented. With dNFTs, someone could invest in a sports card of a player in 2022 and the dNFT would continue to update throughout the remainder of the players career. Stats such as skills, speed, agility, assists, goals scored, etc, could be stored in the dNFT. These stats could update as the season progresses, and if the player changes to another team it can also update. Even the image of the player could update every year as they get older. This would not be possible with a static NFT since the metadata would be permanent once someone creates the token in the first place. 

Real Estate

An interesting example would be the use for real estate. Image you wish to buy a house. Now imagine you can search for all the info regarding that house as a dNFT. It would be a tokenized real world asset, and its benefits could include things such as previous owners, sale price, taxes paid for ownership, and other useful information for any would be buyer such as changes to the home. The info would be backed up on the blockchain so a buyer could be safe that the knowledge they are getting regarding the home is legitimate and correct.

Living Art

NFTs are commonly known for being used in art. There is no reason why dNFTs can not also be used in this way. Art can be expressive and evolve, for example a piece could change or add more every time it has sold a copy. Another piece of art could update depending on external factors so as weather conditions in a certain location, or to represent results in local elections etc. The possibilities are endless, and just like art, it is all about the expression of the creator.

Gaming

The play to earn gaming industry has boomed in recent years, and dNFTs can be a major resource within them. NFTs themselves are being talked about by the likes of Sony, so imagine if you buy a sword in a game and the more kills you achieve with it, the better the stats become for the weapon. The same sword could then be sold to another user, making the functional use of dNFTs within the gaming space. 

Conclusion

We are all well aware of the world of NFTs at the stage as they have dominated the crypto space for the last number of years. Static NFTs are the original most common NFTs known to us all, and can be in the form of images, videos, music, items in a game, etc. The are unchangeable, meaning once the item is minted it remains in the same state forever on the blockchain. Dynamic NFTs however overcome this issue by allowing their metadata, the information relating to what the NFT is, to change depending on certain conditions being met. The use cases for dNFTs are almost endless, but they will not be a replacement for traditional Static NFTs. Instead they can be used for things like passports, trading cards which update, living art, and gaming items which grow and evolve. The world will change immensely once NFTs and dNFTs take hold in everyday life, and being able to update the data in an NFT is an invaluable asset to have in this world.

Peace. CryptoGod-1.

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