A new trend is emerging in the NFT world today — dynamic NFTs. Let’s find out what they are, how they are different from static NFTs, and the primary use cases for dynamic NFTs.

In simple terms, dynamic NFT (dNFT) is an NFT that can change ‘in real time’ and interact with the off-chain environment.

While static NFTs get the fixed metadata once they’re minted on a blockchain, dynamic NFTs can update their aspects, responding to real-world events. This is done automatically within the dNFT smart contract.

As of today, static NFTs are more commonly used, especially for art projects and digital collectibles. However, they have limited performance. Unlike those, evolving dNFTs can be used in areas where progress is needed.

Here are some potential use cases:

Blockchain games with progression. Game characters can be playable dNFTs. As the player continues leveling up, the metadata in the NFT changes to reflect the character’s growth: more power, health, skills etc.

Tokenizing real-world assets. Imagine a car that has a unique dNFT. The car’s price can change, it can get new tuning and several owners over time. All this data will be automatically updated in its dNFT.

High-tech documentation. During our life, we change a lot of personal information: name, address, marital status, real-estate ownership etc. Dynamic NFTs can serve as a kind of registers, where the data is updated in real-time.

Times are changing fast today, and dynamic NFTs is something new that crypto world can offer — to digitize life and make various processes more flexible.