“SMARTER” LOYALTY PROGRAMS THANKS TO dNFTs.
DYNAMIC NFTs & 6 POTENTIAL USE CASES.
dNFT stands for Dynamic Non Fungible Token, and yes, they are an evolution of NFTs with the ability to adapt and change in response to external events and data.
The next step in the evolution of NFTs is just getting started, you might not know, but this is huge and it will change and disrupt many sectors, so Let´s dig into this!
Just 2 days ago Polygon published on its twitter account
Starbucks launching later this year — the coffee chain’s first foray into building with web3 technology. The new experience combines the company’s successful Starbucks Rewards loyalty program with an NFT platform, Starbucks Odyssey (on Polygon), allowing its customers to both earn and purchase digital assets that unlock exclusive experiences and rewards.
What is Polygon?
Polygon (formerly Matic Network) is a scaling framework for building Ethereum-compatible blockchains. Instead of providing just one or two scaling solutions, Polygon is creating an ecosystem that connects multiple different scaling solutions, including sidechains with different consensus mechanisms and layer-2 options such as Plasma, Optimistic Rollups, and ZK-Rollups. Polygon’s framework also allows new projects to quickly and easily build their own unique scaling solutions.
Polygon distinguishes itself from other blockchain scaling and interoperability projects with its Ethereum Virtual Machine (EVM) compatibility, an optional shared security model, and its advanced flexibility.
NFTs, Non-Fungible Tokens have evolved from NFT 1.0 to NFT 2.0
NFTs 2.0 are “smarter” they are “living” NFTs, moreover thanks to the most wanted Ethereum´s upgrade, called “The Merge”, that might be on air tomorrow (as a very well spoken ethereum´s community person published just today), NFTs 2.0 will bring a larger number of new uses cases, read at the end of the article!
Contents:
- WHAT ARE STATIC NFTs?
- WHAT ARE DYNAMIC NFTs?
- ONE OF THE FIRST NFT THAT “CHANGE”
- POTENTIAL 6 USES CASES WITH DYNAMIC NFTs
- WHAT ARE STATIC NFTs?
One of the most NFTs 2.0 exciting evolution are dNFTs, Dymanic NFT as well called “Living” NFTs. But first of all, you need to know what a NFTs is.
NFTs are Smart Contracts that are “Unique”, refers to blockchain assets with unique identification metadata.
Generally, NFTs are created using a similar programming method to cryptocurrency; however, unlike cryptocurrency, NFTs are non-fungible, implying that they cannot be interchanged or replaced due to the uniqueness of the encoded metadata. For example, Crypto as coins are tokens that are “indistinguishable”, 1 ETH is indistinguishable from another 1 ETH, meanwhile NFTs are tokens that are “unique”.
The most common currently NFT use case is digital art, although there are ohters types depends of its category.
So this static NFT model or as well called NFT 1.0, for the very first time in the history of the Internet, brought to artists the possibility to sell digital art to their fans by giving them verifiable ownership, while fans can prove that they own an original artwork.
Despite dNFTs, unlike NFTs, They can shift and mutate over time, according to programmable features encoded by theirs developers.
2. WHAT ARE DYMANIC NFTs? as well called “living” NFTs.
So how does a dynamic NFT differ from a regular NFT? In simple terms, a dynamic NFT’s metadata can change based on varying conditions. That can include the passage of time, interactions with other NFTs, or external data, including information drawn from sources that monitor real-world data, like weathervanes or real-time sports scores.
In dNFTs Smart contracts can leverage oracles to access off-chain data sources such as web API and IoT data to make changes to the NFTs.
Living NFTs thanks to use smart contracts that embed these factors within an NFT’s metadata, can accomplish all this “data updated” token picture.
dNFTs are cryptographically secure, decentralized, and fraud-resistant for example, trading cards can be created using data and updated in real time when the data changes.— when a new point is scored or a successful assist is recorded. This creates a new level of novelty for NFT collectors, and unlocks new utility in NFT-based gaming applications.
3. ONE OF THE FIRST NFT THAT “CHANGE” by Beeple
Digital artist Mike Winkelmann, build one one of the first NFTs to change, the name is Crossroads, it was designed as a response to the 2020 presidential election. Depending on the election’s outcome, one of two videos — one featuring a victorious Trump, the other featuring a despondent one — would play. In other words, changed its appearance based on the outcome of that contest.
Beeple’s dNFT it was created in the very early days, and only hinted at the possibilities of NFTs that could change their state, but 2 years after this “living” NFT, developers can program NFTs to autonomously update themselves based on anything they’re competent enough to code using programmable smart contracts.
4. POTENTIAL USES CASES WITH DYNAMIC NFTs.
Thanks to Michael Robinson, a Chainlink developer, we can land some specific dNFTs uses cases.
USE CASE 1. REAL — WORLD UTILITY
USE CASE 2. A NFT THAT CAN CHANGE BASED ON EXTERNAL CONDITIONS.
This is a dNFTs based on real-time weather data supplied by Chainlink oracles on Polygon.
USE CASE 3. CAN BE PROGRAMMED IN A INFINITE NUMBER OF WAYS.
For example, your Tesla Model 3 can be tokenized as a dNFT with metadata updated to reflect its service records, mileage, accident report, market value, and more.
USE CASE 4. dNFT REPRESENTING YOUR HOUSE.
The metadata of a dNFT representing your house can change to reflect maintenance history, past sales, and age.
USE CASE 5. LOYALTY PROGRAM THAT AUTOMATICALLY EXECUTE ITSELF.
Retail stores can build robust, automatically executing loyalty reward programs by leveraging Chainlink services within dNFTs on Polygon, e.g. Starbucks & Polygon that it was announced 2 days ago.
USE CASE 6. dNFTs REPRESENTING IN-GAME CHARACTERS THAT AUTOMATICALLY UPDATE.
Like when the player has logged a specific amount of time played or achieved other player progression milestones.
The future of the living NFT, seems inextricably linked to that from which it draws data, we are in the second NFTs generation and this evolution, has just started.
