Dynamic NFTs Explained

Dynamic NFTs Explained

5 Min.

Dynamic NFTs, a subtype of non-fungible tokens, are distinct from static NFTs in that they are capable of undergoing changes due to smart contracts and the conditions embedded by their creators.


Non-Fungible Tokens (NFTs) are digital assets with unique and irreplaceable characteristics registered on a blockchain. These distinct assets are typically formed with a set of rules, or "token standard," which guarantees that each NFT has a unique token identifier.

In addition to digital collectibles and NFT art, NFTs can be used to tokenize real-world assets such as passports, certificates, and real estate deeds. While many of these uses of NFTs are currently being tested and are becoming increasingly accepted, they might not be able to adequately represent assets with changing dynamic information.

Static NFTs created through smart contracts have permanent, immutable token data which cannot be modified. This ensures that static NFTs remain unaffected by changes in external conditions. However, this can lead to an NFT becoming out of date if the original information associated with it changes.

Dynamic NFTs can solve the limitation of token IDs staying the same. In addition, they have the ability to be modified when triggered by certain conditions.

Dynamic NFTs

NFTs whose properties can be changed when certain criteria are met are known as Dynamic NFTs. Every NFT holds metadata, which defines its attributes.

Metadata associated with NFTs can include details such as names, descriptions, and specific traits tied to the NFT. For example, when dealing with gaming-related NFTs, information such as the avatar's strength or stamina might be included. With NFT art, the metadata can encompass characteristics like its color scheme or added accessories.

CryptoKitties, the Ethereum-based game, was one of the first NFT projects to make a splash when it was launched in 2017. This blockchain game gives players the ability to collect, breed, and trade dynamic NFTs of virtual cats.

Dynamic NFTs are built using the ERC-1155 token standard, so their metadata can be altered and seen visually. Unlike these dynamic NFTs, static NFTs are generated using the ERC-721 token standard and don't have the ability to change the metadata in the same way.

According to Ethereum, tokens created with the ERC-1155 standard share similarities with both ERC-20 tokens (which are fungible) and ERC-721 tokens (which are non-fungible). As such, they are classified as semi-fungible, meaning they can be altered as needed.

How Can Dynamic NFTs Be Changed?

The usual procedure:

  1. A smart contract containing a dynamic metadata set is used to mint a dynamic NFT.
  2. The smart contract accesses data from Oracles; these third-party services supply external data from sources such as Internet of Things (IoT) data and web application programming interfaces (APIs).
  3. The smart contract evaluates the NFT, gathering data from oracles to encode modifications during the minting process.
  4. The attributes of the dynamic NFT will be modified as needed.

Dynamic NFT Applications


Blockchain-enabled digital identity cards or passports could make use of dynamic NFTs on a global scale. The benefit of such NFTs would be that they are highly adaptable, allowing any alterations to a person's identity to be reflected immediately without having to replace the document. Such changes might include address, marital status, and contact information.


The ERC-1155 token standard is often associated with NFT gaming, so it's no shock that dynamic NFTs are most frequently seen in blockchain video games. By using dynamic NFTs for their in-game avatars, players can take their gaming experience to the next level. These dynamic NFTs will reflect their characters' growth as they gain experience by displaying different appearances or stats.

For games to keep players engaged, progress is a critical element of game design. Dynamic NFTs make this achievable but also give games the capability to offer experiences with multiple endings and participatory activities contingent upon external information.

Virtual Real Estate

Real estate tokenization has been used for a while now, but static NFTs lack the capability to demonstrate modifications, such as variations in property prices, age, and proprietorship. On the contrary, dynamic NFTs can gauge the subtle nuances of real estate and boast the suppleness essential for updating specific data.


The increasingly popular art form of dynamic NFTs enables digital artists to create artwork that expresses impermanence, similar to the traditional Japanese aesthetic art of wabi-sabi, which celebrates the transient. Through the use of real-time data, dynamic NFT artworks can be programmed to change based on the current weather or season, thus making the work even more special and unique.

NFT art can recreate the experience of real-world art installations, which calls for audience participation for full appreciation. This can be done through interactive NFTs that change depending on the token holder's interactions with their asset. Doing this will bring a more engaging art experience to digital art exhibitions.


Dynamic NFTs are a more advanced form of NFTs than their 'static' counterparts, as they can react and display data from the external environment in real time. Apart from the uses described in this article, dynamic NFTs have plentiful possibilities, making them suitable for creative NFT modifications.

Dynamic NFTs