How Do “Dynamic NFTs” Change Their Metadata over Time?
Dynamic NFTs are designed to have metadata that changes based on external conditions or user actions, often using an oracle. For example, an NFT representing a sports player could update its traits based on real-world game performance.
This is achieved by having the token's URI point to a smart contract or a centralized server that is programmed to return different metadata based on the trigger.
Glossar
Metadata
Provenance ⎊ Metadata within cryptocurrency, options trading, and financial derivatives establishes a verifiable history of an asset’s ownership and transaction lineage, crucial for regulatory compliance and risk mitigation.
Nfts
Asset ⎊ Non-Fungible Tokens (NFTs) are unique cryptographic assets on a distributed ledger, typically conforming to the ERC-721 standard, where each token possesses distinct metadata and is non-interchangeable, representing verifiable ownership of a singular digital or physical item.