One of the most prominent applications of blockchain and the one that has gained the most popularity has been NFTs. Non-fungible tokens have been conquering the world offering great opportunities in the metaverse and in sectors such as art or real estate. However, a new generation has appeared, the dNFT (Dynamic Non-Fungible Token).
As we have explained in other articles NFTs can represent natively digital or physical assets of which you want to have a representation in the digital world. These non-fungible tokens can be differentiated from each other through their unique contract address and their immutable token ID, whose metadata cannot be changed. As we will see below, it is in the latter feature that dNFTs make the difference.
Metadata describes the essential functions of an NFT, which may include its name, description, images, video files or other data that you want to attach. In the case of NFTs, this metadata cannot be changed, it appears static.
What are Dynamic Non-Fungible Tokens?
Simply put, dNFTs are like NFTs, but they can change depending on external conditions. Developers encode automatic changes within the smart contract of the non-fungible token, providing it with instructions on when and how to change its metadata. In addition to changing based on conditions, dynamic NFTs can be minted based on conditions.
This new generation of NFTs would have a large role to play in tokenizing real-world assets or creating video games that require data updating. By using dNFT in games and metaverses, characters will be able to experience progress and evolve based on conditions, game changes or the player’s own achievements.
While it is true that Dynamic Non-Fungible Tokens have a recent appearance and little popularization, they can play an important role by providing the same features as NFTs, by remaining unique and indivisible, but with the advantage that their metadata can change depending on external conditions.
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