• DYNAMIC NFTS: WHAT ARE THEY?

  • The NBA Association NFT collection is one-of-a-kind. Unlike typical NFTs, which remain the same throughout time, the NFTs in this collection alter appearance. Each NFT represents a player from one of the NBA’s 16 playoff teams and is linked to real-time data for that player and team. The aesthetic appearance of NFTs changes based on the performance of the players and teams during the 2022 NBA playoffs. Backgrounds, accessories, and emojis are examples of visual alterations.

    The Association collection depicts NFTs from a new genre. They are referred to as dynamic NFTs since they alter over time.

    Static versus dynamic NFTs

    Once recorded on a blockchain, static NFTs do not alter. When minted, each token obtains a unique token ID as well as persistent metadata.

    Dynamic NFTs are adaptable tokens that respond to external data. In this scenario, NFTs retain their IDs, but their metadata updates are based on predefined criteria.

    How is metadata updated?

    An NFT’s metadata may include its name, description, characteristics, photos, videos, or other file links. These parameters can alter in the case of dynamics NFTs dependent on external data.

    Dynamic NFTs are created by encoding programmable features with smart contracts. The NFT’s metadata changes independently in accordance with the rules stated in these contracts.

    As a result, a developer can connect any external data, both on-chain and off-chain, with a new NFT action. The Association NFTs, for example, are linked to on-court data that is used to measure the players’ achievements as described in the collection’s smart contract. When a goal is met, the related NFT changes visibly.

    In a nutshell, the smart contract determines whether and how the metadata should change in response to predefined conditions.

    Dynamic NFT applications

    Dynamic NFTs can be used in a variety of applications.

    GET ACCESS TO A COMMUNITY

    Consider the Pearproof app, which allows social media creators to mint NFTs of their postings. It shows how dynamic NFTs can be used to construct gated communities and a reward system depending on the underlying NFTs’ performance.

    When the posts attract more social media attention, the Pearproof NFTs gain value.

    When the posts receive greater social media activity, the Pearproof NFTs gain value. For that purpose, NFTs are linked to associated data such as comments, shares, and likes, making them dynamic. NFTs level up as postings gains popularity. Fans who have these NFTs receive varied prizes dependent on their NFT level. The originator of the social post, for example, can provide access to exclusive events or private Discord channels.

    BLOCKCHAIN GAMES ON THE GO

    Character advancement is a common concept in video games, including blockchain-based ones. As the character progresses through the game, it can acquire additional abilities. Similarly, NFT assets in-game can be dynamic. For example, if specified actions defined in the smart contract are carried out, an item can become more efficient.

    The dynamic NFT concept is used to create a farming game in the collectible game Aavegotchi. Players nurture and level up digital pets of varying rarities based on gameplay. Because of the dynamic nature of the NFTs, the incentives only increase if players truly care about their pets.

    FUNDRAISING

    Regenerative Resources’ short film production is another interesting use case. Three short films were produced as dynamic NFTs in order to collect funds for reforestation programs. Each film began with a single frame. Every time an NFT was sold, a new frame of the film was shown, making the fundraising process more exciting.

    In conclusion

    Dynamic NFT apps have limitless potential since developers can connect data with NFTs in unexpected and novel ways, adding to the growing number of NFT services.

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