What are Dynamic NFTs?

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September 5, 2022
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What are Dynamic NFTs?

NFTs, or non-fungible tokens, are cryptographically safe tokens that substitute for assets. In short, NFTs are digital tokens that identify certain assets and make possession, monitoring, and selling easier. These resources may be real or digital, based on the circumstances. 

NFTs have gained prominence within the Web3 ecosystem, with several well-known media figures issuing their own NFT collections. Just two further applications for these tokens that have produced a record-breaking level of public attention are peer-to-peer trading and virtual payments. 

The dynamic NFTs are predicted to drastically alter the present NFT trade patterns. In the world of cryptocurrencies, dynamic NFTs are increasing in popularity, and a number of them, most notably OG crystals and merge, have caused a fair amount of debate already. Within a couple of years, dynamic NFTs, according to many aficionados, will rule the world as simply as we could say. 

What are Dynamic NFTs?

Each NFT is coupled with certain metadata. This data outlines the NFT's characteristics. For example, the metadata of a Bored Ape Yacht Club artwork might include data about the piece's name or number, the background's color, the elements of the Bored Ape's outfit, etc.

The content in static NFTs remains unchanged. As a result, the NFT's characteristics and designs are retained. Dynamic NFTs, on the other hand, are intended to automatically update data in reaction to real-world occurrences.

If you’re wondering why the name “dynamic”, then the situation goes like this. In many cases, giving NFTs the ability to respond to and adapt to natural circumstances can prove to be advantageous. It is because it may lead to modifications to the token's metadata,

a phenomenon that "dynamic" in this context should refer to. 

These NFTs contain built-in smart contracts that obtain data from oracles and update the metadata of the token. An oracle links off-chain infrastructure and on-chain programming, permitting blockchains to adapt to real-world events and connect with existing systems.

Dynamic NFTs have the ability to modify certain elements of their metadata dependent on external factors while still preserving a unique identity. 

The working of Dynamic NFTs

Dynamic NFTs are said to develop with the aid of both off-chain and on-chain computing. Smart contracts are the technology that facilitates such a process. Smart contracts analyze off-chain and on-chain data to generate a response that is displayed to users whenever an NFT (non-fungible token) is desired. If this sounds confusing, here is a proper breakdown of the steps: 

1. A smart contract is first contacted with a request for an NFT.

2. The smart contract accepts the request and processes it.

3. The smart contract requests on-chain info and then processes the answers.

4. The contract evaluates the outcomes after placing a call to an oracle for off-chain data.

5. Data from both the on-chain and off-chain are examined. The smart contract then grants the requestor media one or two.

What this essentially implies is that smart contracts are what enable NFTs to evolve, adapt, and develop over time. As a result, based on off-chain and on-chain data, smart contracts judge whether a non-fungible token should change and if so, then modify the metadata of a dynamic NFT.

How do Dynamic NFTs differ from static NFTs?

Most NFTs have been static up until this point, utilized mostly as digital collectibles, in NFT craft projects, and in play-to-earn game ventures. Images, videos, audio, and gaming elements are examples of static NFTs. 

Static NFTs are excellent in many scenarios, such as digital art or digital collectibles. In fact, it's probable that static NFTs' immutability is what gives them their value. Statistics confirm that institutional and retail traders have put billions of dollars into static NFT artwork in the past year alone. 

After being minted on a blockchain, the metadata of the static NFTs remains fixed. This confines their usefulness to tasks like tokenizing physical assets, developing progression-based video games, or constructing fantasy sports leagues on the blockchain. The metadata has to be amended for each of these. This is where dNFTs or Dynamic NFTs come to the rescue because they can modify depending on outside factors. 

The next stage in the revolution of non-fungible tokens has already begun with dynamic NFTs (dNFTs). 

The experts claim that a variety of off-chain or on-chain occurrences could result in updates to a dNFT's metadata, showcasing the dNFTs' limitless potential to broaden the NFT design parameters, particularly for digital collectibles and unique and exciting gaming features.

The metadata of the tokens can be modified by dynamic NFTs using both on-chain and off-chain data sources as input. So the key difference between a static and dynamic NFT is how changeable and flexible the token's metadata is.

Popular use cases of dynamic NFTs. 

1. NFT Sport Cards 

Sports collectibles or cards are yet another great case. Let's now have a look at a dynamic NFT that features a real-world football player, the commonly illustrated example. The player's pace, body type, height, number of goals and strikes, and other characteristics can all be included in the NFT's metadata. 

The information that the player is logging will definitely alter over the span of each season. As a result, the dynamic NFT may be given the choice to obtain off-chain info about the player's development and upgrade the metadata correspondingly. 

With a static NFT, this would not be feasible since this metadata would persist after the first creation of the token. Therefore, with dynamic NFTs, the metadata for this info is updated regularly. 

2. Gaming

As the NFT enterprise grows, dynamic NFTs represent the most recent era of technological advances. The VRF (Verifiable Randomness Function) component of the dynamic NFT provides real-time verification and ensures the volatility of the distribution of in-game materials. 

As a result, P2E players will gain access to a fair, random distribution of rare items as well as power rankings when partaking in campaigns and events in the game. For instance, Dream Quest, a P2E game based on NFTs, uses VRF to assure the equitable and random distribution of attributes to its NFTs.  

3. Real Estate Sector 

A dynamic NFT could offer a more detailed understanding of the property and the changes made through time rather than merely recognizing ownership like a static NFT does. It might offer statistics on the age, management record, previous sales, etc. of the house.

Let's suppose that we have a dynamic NFT that represents a house. Over time, renovations, repairs, and maintenance are carried out, most likely increasing the property's worth. 

The dynamic NFTs' metadata will automatically reflect these changes that link to the outside world. It is advantageous to have the possibility of changing measures while tokenizing real-world assets because this is something that is highly imperative. 

4. Passports

Governments might potentially issue dynamic NFT passports that would continuously refresh the traveler's data. No stamp or further papers will be required because the data is held in the blockchain. This would lessen the likelihood of deception and fraud once they were to become immutable and traceable, thanks to the blockchain. 

If every passport became a dynamic NFT, it would be capable of being stored on a cellphone and have it continually updated with details from official websites. This makes it more practical for registering for visas and using them for flights.


A revolutionary shift has occurred in the world of digital assets with dynamic NFTs. This innovation is already being used by several projects to introduce fresh new NFT collections, even though the idea is relatively so new. 

Dynamic NFTs are what give the blockchain world its appeal, despite the fact that our age-old NFTs have given it a fascinating curiosity from the beginning itself, dNFTs have the potential to shift the methods of how users interact with NFTs and the principles they uphold. 

Upcoming use cases brought by this revolutionary class of digital assets may open up a number of new possibilities we haven't even considered yet, and that is why we readers should be aware of its potential at the earliest. 

From All the HyperGrowth Team
Your Crypto Startup Accelerator
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