Dynamic NFTs are a new trend in the NFT world. They are an improvement over static NFTs in that they are more flexible and expand the possible use cases for NFTs. So what are Dynamic NFTs and how do they work? In this article, we will explore more about them.
What are Dynamic NFTs?
Dynamic NFTs are non-fungible tokens that can be changed according to specific circumstances. Because of their ability to adapt and change in response to external events and data, dNFTs are expanding the design space that NFTs can handle.
In simple terms, this type of NFT contains characters and data in its smart contract code that can evolve based on input from an external environment, such as the dynamic Duelers NFT collection provided by OpenSea. This capability is critical for NFTs to move across blockchains via oracles and bridges, as static NFTs are chain-based and cannot be used off-chain. Therefore, this transition from static to dynamic NFTs facilitates better cross-chain interoperability.
A dynamic NFT is an NFT that can change in response to external things. A change in dNFT usually means that the smart contract has changed the metadata. This is possible because NFT smart contracts have auto-update capabilities that tell the underlying NFT when and how to change its information.
How do they work?
With the support of off-chain and on-chain algorithms, dynamic NFTs can evolve. These are powered by smart contracts. Smart contracts analyze off-chain and on-chain data to build responses that are presented to users when NFTs are requested.
Step 1 - The smart contract is first launched with an NFT request.
Step 2 - Smart contract receives the processing request
Step 3 - The contract processes the result after calling the oracle to get the off-chain data.
Step 4 - Evaluate data from on-chain and off-chain. The smart contract then provides its result to the requester.
Essentially, this means that smart contracts enable NFTs to develop, update, and evolve over time. Therefore, based on off-chain and on-chain data, the smart contract decides whether the non-fungible token can be changed and if so, the metadata of the dynamic NFT.
How to create Dynamic NFT?
Here is the step-by-step process of creating Dynamic NFTs:
- Setting up ERC721 tokens
- Upload NFT image link in IPFS URI
- Completion of compilation checks
- Make NFT contracts "Keepers compatible"
- Have the smart contract interact with Chainlink price information that will change the NFT based on a variable you define (in this case, the market price).
- Test your dNFT to see if it dynamically updates as expected.
- Mint and deploy your dNFT
Note: These are only simplified steps for creating Dynamic NFT.
Hopefully, you will now understand what are Dynamic NFTs and How to create Dynamic NFT. Dynamic NFTs are even more fascinating because their metadata can be easily modified. While NFTs give the blockchain world a glamorous look, dynamic NFTs give it charm.
