Learn how to create Dynamic NFTs (dNFTs), an extension of an NFT that lets you infuse life and energy into your digital art.
- Dynamic NFTs (dNFTs) utilize smart contracts and real-time data from oracles to evolve based on external conditions, such as weather, sports results, or asset prices.
- Oracles play a vital role in dNFTs by providing and validating external data. Metadata, which describes a token's characteristics, can be updated with both on-chain and off-chain data.
- Prominent use cases for dNFTs include sports, gaming, and real estate.
- The Chainlink Verifiable Randomness Function (VRF) enables the random distribution of in-game items and traits, contributing to the rarity of items in play-to-earn games.
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What Are Dynamic NFTs (dNFTs)?
One key element to know about dynamic NFT is the use of metadata. It describes the token’s characteristics and can include different types of information, such as names, descriptions and features.
Application of Oracles in Dynamic NFTs
- Creation of NFTs.
- Transfer of their ownership.
- Resolution of competition outcomes by assigning value to the assets.
Static NFTs vs Dynamic NFTs
The differences between static and dynamic digital non-fungible tokens are few but crucial. The static version of digital assets cannot be modified or changed and is not updateable over time.
The opposite is true for dynamic digital tokens. They are sometimes also called dNFTs or living NFTs. Their modifiable metadata makes them interactive and responsive, which enables different and broader use cases than static NFTs have.
Oracles transmit data to the non-fungible token without prompting the creation of a new one. The old token is modified, which makes the dNFTs a perfect match for use cases that require regular updating of data.
Static NFTs, on the other hand, cannot be changed or modified. This makes them more secure, more lightweight and more compatible with many existing protocols and systems. Since the number of transactions has no influence on the creation and storage process of these NFTs, they are a better fit for verification purposes. All of the metadata is stored in a single file for these types of NFTs.
How Do I Create a Dynamic NFT?
The steps are summarized in short below.
Steps Involved in Creating Dynamic NFTs
2. Upload the NFT image links in the IPFS URIs.
3. Complete a compile check.
4. Make the NFT contract “Keepers Compatible”.
5. Create the smart contract that will modify the NFT based on the variables specified.
6. Test the dynamic NFT.
There are several platforms where you can create dynamic NFTs without any coding required.
Tools Required for Dynamic NFTs
There are different tools if you want to get your hands dirty with the creation of these web3 tokens:
Chainlink VRF (Verifiable Random Function) is a secure and reliable source of randomness that can be used to create unique NFTs.
Chainlink Keepers is a decentralized service that can be used to automate smart contract functions. It can help you create dynamic NFTs that change over time based on certain conditions.
Hardhat is another smart contract development framework that can be used to create and deploy NFTs on Ethereum.
What Are the Benefits of Dynamic NFTs?
Interactivity, programmability and versatility are the clear upsides from these kinds of tokens. In practice, these factors result in new revenue streams for creators and collectors alike, as dynamic NFTs can constantly incorporate new data to stay up-to-date.
The interactive nature of dynamic NFTs means the NFTs can change their properties based on external on-chain or off-chain events. Creators can offer a more engaging experience and collectors are more likely to stay interested in evolving NFTs.
Another key benefit is programmability, which is the technical term for the dynamic nature of dNFTs. Since they can change and evolve over time, dynamic NFTs are perfectly suited for the creation of games that incorporate new and evolving characters. This versatility makes dynamic NFTs so attractive to collectors, as their final value is not fixed like it is the case for static NFTs.
As a result, dynamic NFTs create new revenue streams for artists and collectors. They offer a high degree of interactivity, which makes them more attractive to buyers and fans. This opens up new opportunities for creators to monetize their work.
NFTs vs Blockchain-Based Assets
Non-fungible tokens (NFTs) and other crypto tokens exhibit distinct differences concerning their inherent traits and uses.
Examples of Dynamic NFTs
Dynamic NFTs have been used in sports to create unique experiences for fans. One example is the LaMelo Ball NFT. Named after LaMelo Ball, a professional basketball player that launched eight different types of digital collectibles, these tokens update according to the player’s statistics (points, assists, rebounds per game).