Dynamic NFTs are changing how NFTs are used. They are reimagining NFTs from static images and mere digital artworks to valuable assets with real-world utilities. Dynamic NFTs have further transformed how NFTs are used in real estate and gaming.
- Dynamic NFTs are NFTs whose metadata changes based on events and data in the real world.
- Dynamic NFTs rely on blockchain oracles to feed them with the latest information.
- Dynamic NFTs have brought more on-chain use cases to industries such as real estate and gaming.
What are dynamic NFTs?
NFTs came to the limelight in 2021 and have been on the scene ever since. However, NFTs are mostly static images, and digital artworks are the most common types. Dynamic NFTs change this narrative by introducing NFTs whose content can change based on events in the real world.
Dynamic NFTs often rely on smart contracts that allow a portion of their metadata to change. This enables them to alter their data and change it as often as needed.
Blockchains are siloed entities, and as a result, they often need to rely on external sources to feed them relevant data to stay updated. This is where oracles come in. Blockchain oracles are off-chain systems that provide appropriate information to connected systems. Dynamic NFTs rely on this system to continually update their information.
The changing nature of dynamic NFTs, therefore, makes them valuable in industries such as real estate and gaming.
Practical use cases of Dynamic NFTs
Dynamic NFTs have use cases that transcend industries. Their ability to change the information they contain makes them perfectly suitable for industries such as gaming, and real estate.
In the real estate industry, dynamic NFTs can be used to track properties and estimate their values. They can also be used to track asset depreciation and estimate the present price of an asset.
In the gaming industry, dynamic NFTs can be used to track in-game progress. This is especially useful for blockchain games where in-game assets are currently represented with static NFTs. Dynamic NFTs help players automatically update their in-game characters, tools, skins, and weapons.
Dynamic NFTs have helped transform NFTs from mere static images. Their emergence has made NFTs more appealing across different sectors and industries. They have also added utilities to NFTs and expanded NFT mainstreaming.