What Is a Dynamic NFT?
Dynamic NFT Blockchain Developer
After achieving widespread adoption throughout the Web3 community, Non-Fungible Tokens (NFTs) are making their way into the mainstream, with spotlights in major media outlets and a series of high-profile athletes and public figures launching their own collections. As a result, NFTs have become one of the most publicly prominent applications of blockchain technology.
The next step in the evolution of NFTs is just getting started. Dynamic NFTs (dNFTs) are expanding the design space that NFTs are able to address through their ability to adapt and change in response to external events and data. In this article, we cover what NFTs are and how dNFTs are taking them to the next level, current and potential dNFT use cases, and how Chainlink can be leveraged by those looking to build dNFTs to give them access to trust-minimized off-chain data and computation.
In a nutshell, NFTs are unique digital objects that exist on a blockchain. Every NFT can be differentiated from another through a 1-of-1 tokenID and its unique contract address. From there, metadata such as images, video files, or other data can be attached, meaning that it’s possible to own a token that represents a unique digital object.
The most common NFT use case is currently digital art; an artist mints a token representing a digital artwork and a collector can purchase that token, marking their ownership. Once NFTs are minted, their tokenIDs don’t change. Keep in mind that ascribing metadata, which incorporates an NFT’s description, image, and more is completely optional. In its most bare-bones form, an NFT is simply a transferable token that has a unique tokenID.
This static NFT model provides a host of benefits for digital artists around the world. Beforehand, digital artists were unable to stop, or even track, unauthorized distribution of their original artwork, because there was no means by which to distinguish the difference between any two files and therefore no single authentic file that could be owned. For the first time in the history of the Internet, creators can sell digital art to their fans by giving them verifiable ownership, while fans can prove that they own an original artwork even if the underlying image is copied.
Going Beyond Static NFTs With Dynamic NFTs (dNFTs)
Static NFTs are currently the most common type of NFT, used for the most part by NFT art projects and play-to-earn game projects and as digital collectibles. Beyond these use cases, they also offer a unique value proposition for digitizing items in the real world, such as real estate deeds, patents, and other unique identifiers.
However, this model is limited by the permanence of static NFTs, because the metadata attached to them is fixed once they’re minted on a blockchain. Use cases such as tokenizing real-world assets, building progression-based video games, or creating blockchain-based fantasy sports leagues often require data to be updated. dNFTs offer a best-of-both-worlds approach, with NFTs retaining their unique identifiers while able to update aspects of their metadata.
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Put simply, a dynamic NFT is an NFT that can change based on external conditions. Change in a dynamic NFT often refers to changes in the NFT’s metadata triggered by a smart contract. This is done by encoding automatic changes within the NFT smart contract, which provides instructions to the underlying NFT regarding when and how its metadata should change.
How Chainlink Supports dNFTs
An often overlooked component of dNFT design is how to reliably source the information and functionality needed to build a secure, fair, and automated dNFT process.
As mentioned above, dynamic NFT metadata changes can be triggered in numerous ways based on external conditions. These conditions can exist both on and off-chain. However, blockchains are inherently unable to access off-chain data and computation.
Chainlink enables these limitations to be overcome by providing various off-chain data and computation services that can be used as inputs to trigger dNFT updates. As the dNFT ecosystem expands and NFTs become more heavily integrated with the real world, Chainlink acts as a bridge between the two disconnected worlds, enabling automated, decentralized, and engaging dNFT processes to be built.
Chainlink Data Feeds and Any API
Chainlink Data Feeds is an off-chain data delivery service that can securely deliver sports results, weather readings, or any other kind of data to be used to update a dNFT. For data offerings that are unique to a project, Chainlink also enables seamless connections between any API and an NFT smart contract through Chainlink Any API.
This service is mission-critical for use cases like LaMelo Ball dNFTs, which require on-chain sports data to trigger metadata changes. However, this is one of a limitless number of potential uses. As the most widely used decentralized oracle network, Chainlink is positioned to provide off-chain data to any dNFT that uses real-world data.
Chainlink Keepers is a secure smart contract automation service that can be used to trigger dynamic NFT changes when predefined conditions are met; to trigger visual changes in La Melo Ball NFTs when he reaches a certain stat threshold, such as 1000 points scored, for example.
Chainlink Keepers provide an easy path to building truly autonomous and decentralized NFT processes and help ensure that user-owned dNFTs will work exactly as detailed. Combined with Chainlink Data Feeds and Any API, Chainlink Keepers can enable the development of automated and engaging shopping rewards dNFT programs, eco-friendly behavioral tracking through dNFTs, and more. VANCOUVER, British Columbia — Nft bitcoin software as service .