Summary
Under the general category of non-homogeneous tokens (NFT), there is also a subcategory called dynamic NFT. Due to the use of smart contracts and the casting conditions set by the creator, the dynamic NFT series can be changed, so it is fundamentally different from the static NFT.
NFT is a unique and irreplaceable cryptocurrency asset on the blockchain. These one-of-a-kind assets are usually minted to guidelines (aka token standards), so each NFT has a unique token ID.
In addition to cryptocurrency collectibles and NFT art, static NFTs can also digitize real-world assets such as passports, certificates, and real estate deeds. While these experimental use cases have been realized, NFTs cannot adequately represent real-world assets that carry non-static information.
Minting static NFTs with smart contracts uses permanent, immutable token data. In other words, the data of a static NFT cannot be changed. Therefore, no matter how the external situation changes, the static NFT remains unchanged. Due to this limitation, the static NFT will become outdated after the information is changed.
Dynamic NFT does not have this limitation. While their
Dynamic NFT is a subclass of NFT that can change when certain conditions are met. Every NFT contains information called metadata, which is data that describes the characteristics of the NFT.
Metadata can include names, descriptions, and even NFT-specific features. For example, metadata for a game NFT could include characteristics of an avatar (such as strength or stamina). And for NFT art, the metadata could include the color or accessories of the artwork.
Presumably you have heard of the Ethereum game Mystery Kitties, which was one of the first NFT projects and quickly became popular when it debuted in 2017. In Mystery Cat, a blockchain game, players can become virtual cats to collect, breed and trade dynamic NFTs.
Unlike static NFTs, the metadata of dynamic NFTs can be changed and transformed visually. The reason is that static NFTs are usually minted using the ERC-721 token standard , while dynamic NFTs are designed using the ERC-1155 token standard.
According to Ethereum, tokens minted using the latter standard have similar characteristics to fungible ERC-20 tokens and non-fungible ERC-721 tokens. So from a technical point of view, ERC-1155 tokens are semi-fungible and can be changed if necessary.
The specific method is usually as follows:
Dynamic NFTs are minted through smart contracts using metadata.
Smart contracts get data from oracles . Oracles are actually third-party services that provide external information through data sources such as Internet of Things ( IoT ) data and web application programming interfaces (APIs).
The smart contract then evaluates the NFT with data obtained from the oracle in order to evaluate the NFT and encode changes during the minting process.
Then update the properties of the dynamic NFT if necessary.
If blockchain-based identity becomes a reality, digital identities or passports could be represented globally with dynamic NFTs. Thanks to this flexibility of dynamic NFTs, digital identities can be updated automatically without having to replace digital identity documents. Details including where you live, marital status and contact details are automatically updated.
The ERC-1155 token standard is mostly used in NFT games, so it's no surprise that dynamic NFTs are most common in blockchain games . Players can upgrade their avatars with dynamic NFTs to represent their in-game characters, enhancing the gaming experience. As players gain experience, their character growth can be reflected in the changing appearance or stats of their NFT avatars.
The concept of game progress is an important part of game design to attract players, and dynamic NFT can successfully attract players. Dynamic NFTs also facilitate self-choosing game endings and enhance other engaging experiences that require external data.
While real estate tokenization has been around for some time, static NFTs cannot reflect changing factors such as real estate price, age, and ownership. And dynamic NFT can just capture real estate details, with the flexibility required for specific information updates.
Wabi-sabi , a traditional Japanese aesthetic art form that focuses on capturing the moment rather than the eternity, perfectly embodies the desire of people around the world not to miss the moment. With dynamic NFTs, digital artists can use real-time data to encode changes to artwork, recording these changes to make their artwork more unique. This is the case, for example, with dynamic NFT artwork that changes appearance with the current weather or season.
It can also imitate art installations in the real world that require audience participation to appreciate to enhance NFT art. In this case, the dynamic NFT may change as the token holder interacts with the asset, which is equivalent to watching a digital art exhibition in advance.
Compared with static NFTs, dynamic NFTs are smarter and can adapt and reflect the external world in real time. In addition to the applications mentioned in this article, there are countless use cases for dynamic NFTs, and they can easily meet the changing needs of NFTs.
token IDs remain the same, dynamic NFTs have the unique ability to change when certain conditions are met.