<h2>What are dynamic NFTs</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3a4e09d638a4a8e6023f659fee92.jpg" alt="what are dynamic nfts" title="what are dynamic nfts" width="600" height="356" class="lykafe0"></p><p class="prosemirror-p-center"><em>dNFTs can be upgraded in multiple ways based on external conditions (Source: Chainlink)</em></p><p dir="ltr">A <strong>dynamic NFT (dNFT)</strong> is an NFT that can alter in response to environmental factors. Change in a dynamic NFT frequently refers to metadata changes brought on by smart contracts. This is accomplished by encoding automated modifications in the NFT smart contract, which instructs the underlying NFT on how and when to update its metadata.</p><p dir="ltr">In addition to metadata updates, dynamic elements can also exist. For instance, based on specific circumstances, such as when a hidden place is discovered in an augmented reality application, dynamic NFTs can be created. Additionally, "<strong>hidden features</strong>" exhibited through user interactions as opposed to metadata can be stored in dynamic NFTs. NFTs can be programmed in countless different ways because they are completely unique and programmable tokens. However, in order for non-technical users to "see" the changes, the majority of <strong>dynamic NFTs</strong> must implement some kind of metadata change.</p><h2>How dynamic NFTs work</h2><p dir="ltr">As of this writing, dynamic NFTs mostly use <strong>Ethereum's ERC1155</strong> token. On other blockchain networks, such as Solana, comparable token ideas are being created.</p><p dir="ltr">In a dynamic NFT, smart contracts provide guidance on how the metadata of the dNFT should be modified in response to a triggering event based on outside information through an oracle or an on-chain event.</p><p dir="ltr">A base prior to the implementation of smart contracts that control updates, unlocking hidden traits or features, and picture upgrades, NFT must first be constructed. Only when a smart contract is triggered do these conditional changes take place. Events that are time-based, price-based, location-based, on-chain, or off-chain can all be used to activate a smart contract.</p><h2>Dynamic NFTs vs Static NFTs</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3a4e09d63f88a8e6023f659fee92.jpg" alt="how dynamic nfts work" title="how dynamic nfts work" width="600" height="400" class="lykafe1"></p><p dir="ltr">The majority of users today are accustomed to static NFTs. A static NFT is a token with immutable and permanent characteristics that are stored on the blockchain. Images, films, audio, gaming elements, and other static NFTs are examples. Static NFTs are ideal in many situations, such as digital art or digital valuables. In fact, it's possible that static NFTs' immutability is what gives them their value.</p><p dir="ltr"><strong>Dynamic NFTs</strong>, the following development of NFTs (non-fungible tokens), may prove to be very beneficial in the development of the blockchain industry. These tokens combine dynamic data inputs with the verifiable, unique characteristics of static NFTs. Additionally, dynamic NFTs have the ability to modify the metadata of the tokens using both on-chain and off-chain data sources. Therefore, the capacity of the token's metadata to alter is the primary distinction between a static and dynamic NFT.</p><p dir="ltr">As a result, there are applications for both static and dynamic NFTs, and one will probably not supersede the other. This means that both types of NFTs have a position in the cryptographic world. But the inclusion of dynamic NFTs in the blockchain ecosystem increases flexibility and expands the range of <a href="https://www.builder.news/crypto-insights/utility-nfts" alt="Utility NFTs: The next level of NFTs" title="Utility NFTs: The next level of NFTs" target="_blank" rel="" class="">possible applications</a> for these tokens.</p><h2>Dynamic NFTs use cases</h2><p dir="ltr">When metadata needs to be changed frequently, dynamic NFTs can be advantageous. Here below are a few hypothetical and actual examples listed by <a href="https://www.builder.news/" alt="Builder.news website" title="Builder.news website" target="_blank" rel="" class="">Builder.news</a>.</p><h3>Gaming</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3a4e09d644f6a8e6023f659fee92.jpg" alt="Dynamic NFTs use cases" title="Dynamic NFTs use cases" width="600" height="319" class="lykafe2"></p><p class="prosemirror-p-center"><em>(Source: Chainlink)</em></p><p dir="ltr">The qualities of an in-game character are recorded in the dNFT's metadata when it is deployed for the first time. The metadata can simply be modified to reflect a character's development as it "levels up" and changes. Another option is to automatically distribute dNFTs based on a player's performance in the game. The dNFT for the sword, for instance, is taken away and might be awarded to the winner if the current owner loses a sword duel.</p><h3>Real estate</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3a4e09d64933a8e6023f659fee92.jpg" alt="dynamic nfts use case" title="dynamic nfts use case" width="600" height="430" class="lykafe3"></p><p class="prosemirror-p-center"><em>(Source: Chainlink)</em></p><p dir="ltr">Dynamic NFTs are becoming increasingly significant in this sector. Consider a family house tokenized as a dNFT and put up for sale, where the holder also owns the underlying title deed. The value of the property fluctuates over time as upkeep is carried out. These alterations will instantly be reflected in the dNFT's metadata.</p><h3>Regenerative films</h3><p dir="ltr">Regenerative Resources Company is using <strong>dynamic NFTs</strong> in an innovative new real-world application. The company buys extremely degraded land, restores it, and then sells the results of that restoration.</p><p dir="ltr">RRC announced cooperation in December 2021 to launch five dynamic NFTs with Chainlink, Regen Network, ElevenYellow, and well-known AVATAR, Star Wars, and Marvel artists Saiful Haque, Filippo Nesci, and Jan Urschel. Each dNFT will be a little movie that starts with just one frame. More frames will be added with each sale until the owner can see the complete movie. In many ongoing RRC initiatives, 100 million mangrove seeds will be planted and grown thanks to project proceeds.</p><h3>Sports collectibles</h3><p dir="ltr">LaMelo Ball, a professional basketball player, introduced a group of dynamic NFTs in 2021 that make use of Chainlink Sports Data Feeds, a service that offers safe sports results. The rising star's player statistics are tracked differently by each of the <strong>eight dNFTs</strong> that have been made public so far: "Red Mars" represents his overall point total, "Blue Neptune" his steals, "Silver Moon" his assists, etc.</p><p dir="ltr">Depending on LaMelo's continuous success, holders may be granted exclusive access to raffles and other benefits. If Ball were to win the 2021 Rookie of the Year award (which he did), the "Gold Evolve" NFT's avatar picture would be changed.</p><p dir="ltr">Numerous further applications for <strong>Dynamic NFTs</strong> are possible with sports collectibles. Holders of dNFTs may, for instance, make predictions about specific results, like how many points a player will score in a season, and the closest guesser would see an evolution of his avatar. Or tangible awards like official clothing could be conditionally given based on the success of the team.</p><p><em><strong>&gt;&gt;&gt; Discover more:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/nfts-an-accessibility-shortcut-to-sports-npLwE" alt="NFTs - An accessibility shortcut to sports" title="NFTs - An accessibility shortcut to sports" target="_blank" rel="" class=""><em><strong>NFTs - An accessibility shortcut to sports</strong></em></a></p><h2>Bottom lines</h2><p dir="ltr">Dynamic NFTs are live, evolving, and changing tokens. Traditional NFTs are increasingly being referred to as "static NFTs" because they remain the same; nomenclature in this field is also changing. Dynamic NFTs are a crucial development. They expand the capabilities of the Web3 environment and enable a wide variety of use cases. Dynamic NFTs will be a crucial tool for bridging the gap between the physical and digital worlds.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

Even though Dynamic NFTs are still a relatively new idea, they have the potential to alter how owners engage with NFTs and the products they stand for. Let’s see what are these moving NFTs!

Dynamic NFTs - The hyperactive tokens alter over time