A Guide on Static and Dynamic NFTs in Blockchain Industry

Non-fungible tokens (NFTs) are digital assets with distinct and irreplaceable identities. NFTs are increasingly gaining popularity in various sectors, attracting influential personalities like artists and athletes who seek to tokenize assets such as videos, art, music, and statues. The popularity reflects steady growth, with projected global NFT users expected to reach 19.31 million by 2027.

An excellent example of NFT in action is Cristiano Ronaldo’s partnership with Binance, an NFT marketplace, to showcase statues representing a few of his trailblazing moments on the field. Christiano’s fans can register on Binance to buy the sculptures from the limited-edition collection before the listed items run out.

Besides Binance NFT, other popular marketplaces where investors can sell these tokens include , Rarible, NBA Top Shot, OpenSea, etc. Those looking to sell or buy NFTs should choose the marketplace to purchase from, have a digital wallet, and have the cryptocurrency needed to acquire the token.

If NFTs sound like something you want to incorporate into your business, contact an NFT development company for consultation on how to benefit from this profitable blockchain venture.  It is also critical to familiarize yourself with the two categories of NFTs to know precisely what you are buying and what to sell. 

Static vs Dynamic NFTs: What’s the Difference?

Now that you know what NFTs are, it shouldn’t be hard to differentiate static and dynamic NFTs. They operate differently and have a set of benefits and disadvantages. After understanding how the two categories work, you will be better positioned to choose an option that suits your individual or business needs. Let’s get started with static NFTs.

Static NFTs

Static NFTs cannot be evolved, changed, or modified, implying that they retain their original creation throughout their existence. Owners of static NFTs must create a different NFT to include information they cannot add to an already created token. The inability to change or redefine a minted static NFT leaves the creator with limited control over the asset. Static NFTs may not be flexible, but they are attractive to investors for several reasons. 

Despite this disadvantage, static NFTs offer benefits such as enhanced security, as they cannot be modified, even by the creators. Additionally, their compatibility makes them easy to integrate with other existing systems. However, static NFTs are not programmable and have limited interactivity. What about static NFTs applications or use cases? Below is a list of different static NFT use cases:

• Important Documents Storage: vital documents like will testaments and birth certificates whose details cannot be changed can be stored in static NFTs. If you run a business or company, you can tokenize documents like licenses, academic certificates, and medical records as static NFTs. 
• Digitized Identity Verification: in a digital era where identity theft is a rampant cyber concern, static NFTs play a significant role in facilitating identity verification that cannot be altered, keeping fraudsters at bay. This ensures that only authenticated users can access systems using static NFTs, denying unauthorized third parties access to private information. 
• Digital Art Compilations: artists can showcase their unique artistry through music, films, and videos as static NFTs. Artists are part of content creators who can earn extra income from selling their tokenized art on decentralized virtual platforms like blur. The most expensive art pieces sold as static NFTs include The First 5000 Day by Beeples.
• Gaming Collectibles: game developers are killing it by leveraging NFT blockchain technology to develop unique gaming digital tokens. Players also benefit from this static NFT arrangement by trading items they have won from participating and winning in the games. The growth of NFTs gaming has dealt a significant blow to the traditional market as more players try out trending NFT gaming projects like, Axis Infinity, The Sandbox, and more.

Also Read: An Overview Of Play-To-Earn NFTs and Crypto Rewarding Games

Dynamic NFTsad

After going through static NFTs, you must know what dynamic NFTs are all about since they are the opposite. Dynamic NFTs, on the other hand, are popular among digital asset owners and buyers because they can be altered or updated. Asset ownership can change if another party acquires the token, but modifications require permission to avoid unauthorized changes. After buying, for instance, a virtual land in a dynamic NFT platform, you can change details like location and land size. 

The primary reason why dynamic NFTs appeal to most digital asset owners is that they can add value to their content or products over time and continue earning from the added elements. For instance, a painter can modify a painting, and a gaming developer can add more characteristics to a player. Dynamic NFTs offer benefits such as programmability, versatility, security, trust, and transparency among token holders. Now, let’s explore the use cases of dynamic NFTs:

• Real Estate: Property owners can tokenize their property with dynamic NFTs because it allows them to update property details like price, transactions, and ownership titles. Also, virtual landowners don’t have to worry about using brokers or mediators to close sales. Furthermore, you can make changes to contract terms and other areas.
• Sports Sector: Athletes’ progressive details like goals scored, broken records, and appearances can be updated using dynamic NFTs. 
• Insurance: As a controversial industry, insurance companies leverage dynamic NFTs to achieve and enhance transparency and build lasting customer relationships. Insurance customers can access accurate data and records on a decentralized platform, helping them make informed decisions.
• Ticketing: sports and entertainment organizers rely on dynamic NFTs to sell tickets, avoiding the risk of fake or forged tickets being circulated from third parties. Examples of platforms that have successfully minted NFT tickets include ITIX, GUTS, and YellowHeart.

Also Read: Top 10 Blockchains for NFTs

Bottom Line:

Non-fungible tokens, whether static or dynamic, have become a favorite method of tokenizing assets for many industry players. You can join other businesses and institutions already benefiting from this blockchain discovery and prepare yourself for success. You will not only be preparing yourself for success but also getting a chance to outdo your competition. Choosing between static and dynamic NFTs should not be challenging; it depends on your preferences and business goals.