What is a dynamic NFT?

Dynamic NFTs are digital tokens that use smart contracts to change over time. As non-fungible tokens (NFTs) have grown in popularity, so have their use cases and functions. Discussions about a new class of NFTs known as dynamic NFTs are gaining momentum as digital assets evolve. While many NFTs are static, dynamic NFTs can change over time.

Why do digital artists use dynamic NFTS?

Thanks to dynamic NFTs, digital artists can use real-time data to encode changes in their artwork to convey this impermanence, making their art pieces more unique. For instance, there are dynamic NFT artworks whose appearances change based on the current weather or season.

Could dynamic NFTS support Web3 credentials?

The idea behind web3 credentials, if it expands to blockchain-based identification, could be supported by dynamic NFTs. Dynamic NFTs, because of their ability to change their metadata to reflect external data, are a perfect fit for representing identity cards and passports on the blockchain.

Can dynamic NFTS update metadata?

Dynamic NFTs’ ability to update their metadata makes them extremely attractive in some instances. A clear example brought up in the article was real estate. If a dynamic NFT represents a house, it’s possible to update the metadata with, for example, maintenance history and past sales.