ℹ️Dynamic NFTs

Let's try to understand what a dynamic NFT is. Based on our existing knowledge, NFTs were meant to be static and unique on-chain representations of a digital or physical asset. Well, at least that is how it has been taught to all of us until now. That is true, to a certain extent. When you think about them for a second from a smart contract point of view, you will see that they are a link to a metadata file which is essentially a form of JSON that holds a hyperlink to an asset that could be a real-world item like a car, carbon credit, gold, tickets, real estate, etc.; or it could be a digital item like art, cats in pixels, game characters, monkey images, etc. There have been numerous use cases existing so far, some of them are introducing great value with real utilities and some are limited because they don't have more functionality.

To be able to understand the necessity of the d-NFTs, we should focus on the use cases or requirements and check a few examples.

• A dynamic NFT can provide a fashion collection for your game character for example. Your character changes its clothes based on the weather. You shouldn't forget to bring your scarf to Denmark in January!

• Assume that you are playing a game like a football or a basketball game. And one of your players, like Cristiano Ronaldo, made a hat-trick that week. You can expect some improvement in his in-game skills, right?

• What about if you are implementing a farming project and you have a continuous flow of incoming data, your plants are growing and you measuring their health? Don’t you need a constant data feed?

• In a bit more real-life scenario, wouldn't you want to see all of your car's previous service records and logs? Maybe specific malfunctions and fixes? When?

Well, a dynamic NFT can answer all these. A dynamic NFT is essentially an NFT whose metadata can change either over time or based on some off-chain events. These events can be triggered by an oracle in some cases, or a trusted third party like the owner of the collection, or an authorized entity.