Before we start with the main topic of the article, let’s review what NFTs are. Non-fungible Tokens are unique digital objects that can be distinguished from another. In addition to that, you can attach any data you like to the token. It means that it can represent any physical or digital object that previously couldn’t be differentiated. However, if you once put the metadata there, it couldn’t be changed.
They say that everything flows. You can never step in the same river again. However, NFTs stayed the same for quite some time. This changed too. New standard arises. dNFT which stands for Dynamic NFTs re tokens that could be changed or view differently if met specific conditions. You can add metadata to them, or you can connect it to existing APIs like localization, weather forecast or anything you find. Without a doubt, this solution will find it’s niche and has a lot of potential use cases. Let’s take a closer look at them.
Imagine a car that you just bought. Probably electric one which is already connected to the Internet. Trough that it can communicate with Blockchain. Your car is connected to NFT trough metadata, which contains every information about your car. You can show off it in your wallet or simply hold as a protection. In NFTs, metadata contains mileage, every repairment or crash that is uploaded there automatically. There is no room for cheating. The buyer knows exactly what he is buying. Safe, simple and could be viewed anywhere, anytime. The same application can be used in real estate or in any object that hold significant value.
We don’t really think that play to earn is the way to go. If we look wider, there are much better applications of NFTs and Blockchain in games. Today NFTs are mostly used as objects in game like cards or skins that couldn’t be changed. Most of the time it is earned by playing the game or just bought with crypto. This solution is based on an unhealthy pattern of making games a job or finance scheme. As we are enthusiasts of the new economy, we believe that NFTs can open the economy of the games and make it more fair for the players. For now, you can buy and sell games or items only within one platform. Do you have cool skins for League of Legends or unique card in Hearthstone? You can only view them in game and never ever sell it to someone. If the skins or cards were NFTs – they could be displayed globally and available to sale on any NFT marketplace. There was only one problem. What about balance changes? dNFTs unlocks properties of the cards, so you can change them if they are unhealthy for the game. At least but not last, dNFT could reflect your progress in games. Did you invest 1000 + hours in CS or got new rank in DOTA? Noone can see that if they don’t play the game.
That’s true - NFTs did excel in art and creative projects. Still, the newest projects didn’t seem so original. Multiple collections of profile pictures, fixed AI generated images or just digital representation of physical art. Digital art. Itself was changeable (animation, 3D sculpting) but couldn’t be linked to the whole blockchain ecosystem and couldn’t be programmable and conditional. With rise of dNFTs a lot of genuinely creative and original project were created. One of the examples are project that interact with each other. The dNFT you buy is growing or changing overtime. Together, they are connecting into whole new pieces. Some of the pieces are later created in physical form, but the form is previously decided by the user and how they evolved their dNFTs. This is the introduction of gamification to the art. Engaging, original and creative. It can be used also as a cool collectible which is changing. There are no limits. It can often change, it can change once per year or when met specific condition.
That’s only the top use cases, but we are looking forward to use dNFTs as well as to see what people will come up with. For now even the most basic cases – like the NFT that changes its look based on the weather in a given place looks truly innovative and that’s just the top of the iceberg. dNFTs open quite interesting doors to interchangeable art which is responsive to real condition, It couldn’t be done before!