Chainlink announced a new category of NFTs: dNFTs. They argue that given the immutability of NFTs, changing their state from static to dynamic is like changing from photograph to video.
As we know it, Chainlink is a leading Blockchain data provider, being part of the Oracles figure. Apparently, this giant has found itself hard at work during the bear market of 2022.
Thus, it has decided to go further on the issue of Dynamic NFTs (dNFTs). According to the company, this type of token will be the next evolution of the token ecosystem, just as the Internet did with static pages.
The news was made known through a tweet from Chainlink‘s official account, where they remarked the characteristic that most NFTs today are immutable, since once they have been coined, they do not change in the future.
WHAT IS AN ORACLE
Oracles come to fulfill the function of“bridge” between the real world and the blockchain. Blockchains are isolated spaces from reality, so they cannot obtain data from this world.
In the case of DEX (decentralized exchanges) to carry out the DeFi world, they cannot function properly if they cannot access token exchange rate data through an Oracle. The same is true in the case of insurance markets, or predictions.
Oracles are interfaces or bridges that allow data to be obtained from the real world, and transferred to a smart contract. Chainlink is not the only existing Oracle. There are also Reality.eth, Truthcoin, Provable Things (Oraclize), among others.
ABOUT DYNAMIC NFTS (dNFT)
A dynamic NFT (dNFT) is an NFT that has a type of logic in a smart contract, such that its metadata can be changed automatically according to various external conditions, without losing its unique identifiers (ID).
Specifically, they are developed for those NFT use cases that require their data to be updated on a constant or regular basis. Some use cases are generative NFT art projects, or the tokenization of real-world assets.
Also, dNFTs may have hidden properties that will be revealed by user interaction. There are currently off-chain or on-chain events that can cause changes to dNFT metadata. This is where the full potential of dNFTs can be realized.
From the official Chainlink, they have published two articles to address in a broader and more explanatory way the issue of dNFTs. As we announced in the article at the end of September, some of the known use cases are in Real State, web game creation3, or copyright.
However, in recent months new cases of application have become known. In this regard, we can summarize some of the ones that mentioned by Chainlink for dNFTs, such as:
1) Game Performance,
2) VRF (Verifiable Random Function)
3) Augmented Reality,
4) Real-Life Fantasy Sports Leagues
REWARD SYSTEMS AND GOVERNANCE
5) Digital Collectibles
6) Lifestyle Rewards
7) Event-based rewards
8) Consumer Rewards
9) Collective Voting
10) From Proceeds (physical assets, payment and backend systems, etc.)
UPDATE OF VALUATIONS
14) Land (IoT)
15) Cash Flow (Finance)
16) Physical Products
As far as Blockchain-based Fantasy Sports Leagues use cases are concerned, they require that they constantly update their metadata and link real-world information.
We can also find cases of Generative Art NFTs. This is a style of digital art where artists use algorithms as a tool. One of the platforms where this type of NFTs are used is One Mint, o Art Blocks.
In this way, generative art arises from algorithms programmed with certain parameters, by artists and software engineers. In this case, the artist defines the general process, such as the colors or shapes to be used, and then various random data is entered into the algorithm. The result is a generative work of art. This is a typical case of NFTs mining.
A revolutionary case of the year 2022 was that of LaMelo Ball’s LaMelo Ball NFTs collectionthe NBA star who released a collection of eight NFTs, which contain different statistics of the player, such as assists and points scored.
In this case, each NFT in the LaMelo Ball collection is constantly changing based on the information they get from the real world. NBA player stats are constantly updated on-chain linked to each NFT, and can offer upgrades, rewards, and more.
Another case is that of Regenerative Resources Co.through which Chainlink, Red Regen, Once Yellow, artists from Avatar, Star Wars, and Marvel, have collaborated for the development of dNFT to plant and cultivate 100 million mangroves in RRC projects.
Regen will verify that the dNFTs are carbon neutral through the CRR projects. In addition, this collaboration will generate jobs for thousands of people, provide habitat for fish and birds, improve health and biodiversity, among a host of other benefits for the entire population.
IMPORTANT: NFTEXPRESS only publishes articles for informational purposes. Nothing contained herein contains the character of recommendation or promotion of any type of investment for the reader. Before making any kind of investment, it is recommended to consult with a specialist in the matter.
Written by Luciano Garriga (TW:@luchogarriga) for NFT Express