When we think of NFTs, we usually picture static ape JPEGs.
However, a new type of NFTS is emerging: Dynamic NFTs.
The issue with regular NFTs is that all the data they contain cannot be updated.
Many use cases, such as tokenising real-world assets or creating blockchain-based video games, require data to be constantly refreshed.
This is where Dynamic NFTs (dNFTs) come into play.
They have a smart contract that enables them to automatically update their metadata based on external factors, using oracles like Chainlink.
Here's an interesting example of a tokenised Tesla dnft.
Its metadata is continuously updating to reflect things like:
- Mileage
- Market value
- Service record
- Accident history
- Ownership history
This makes the car's history on the blockchain tamper-proof for both current and future owners.
dNFTs have the potential to revolutionise many traditional industries.
The upcoming wave of the NFT boom will be driven by real-world use cases rather than ape JPEG collectables.
Video source: Chainlink
