Please describe your proposed solution.
Static NFTs (ERC-721, ERC-1155) are currently the most common type of NFT, used for the most part by NFT art projects and play-to-earn game projects and as digital collectibles. Beyond these use cases, they also offer a unique value proposition for digitizing items in the real world, such as real estate deeds, patents, and other unique identifiers.
However, this model is limited by the permanence of static NFTs, because the metadata attached to them is fixed once they’re minted on a blockchain. Use cases such as tokenizing real-world assets, building progression-based video games, or creating blockchain-based fantasy sports leagues often require data to be updated. dNFTs (ERC-725X, ERC-725Y) offer a best-of-both-worlds approach, with NFTs retaining their unique identifiers while being able to update aspects of their metadata.
Put simply, a dynamic NFT is an NFT that can change based on external conditions. Change in a dynamic NFT often refers to changes in the NFT’s metadata triggered by a smart contract. This is done by encoding automatic changes within the NFT smart contract, which provides instructions to the underlying NFT regarding when and how its metadata should change.
Dynamic elements besides metadata changes can also exist. For example, dynamic NFTs can be minted based on certain conditions, such as when a hidden spot is found in an augmented reality application. Dynamic NFTs can also house “hidden traits” manifested through user interactions instead of within the metadata. As fully unique and customizable tokens, NFTs can be programmed in an infinite number of ways. However, most dynamic NFTs must implement some form of metadata change in order for non-technical users to “see” the changes.
An example for applying NFT 2.0 (dNFT) to NFT game
For example, we have an NFT 2.0 hero in the game. After you play and upgrade that hero, the hero's stats will be updated data on-chain to that hero's NFT by the issuer through oracle.
NFT information will not be lost when the game server crashes. Because we can completely use checkers to get the information of the NFT and recover it on the server or even we can build a new game based on current NFT information.
Since NFT 2.0 can update data on the blockchain, different games can use NFT 2.0 together. This makes an NFT usable in many different games. Creating interoperability and future Metaverse development. The value of NFT is also greatly enhanced because it is used in many different games.
We will build a platform for publishers of NFT, NFT games or users to create their own dNFT (NFT 2.0).
Please describe how your proposed solution will address the Challenge that you have submitted it in.
Our NFT 2.0 integration platform will help increase the value and number of NFTs on the Cardano platform (Because it is multi-assets NFTs. Different projects can use the same NFT to add value to the NFTs. If an NFT issuer shutdown their server, the NFT still exists because it has other assets).
NFT 2.0 is a new generation NFT that can help create a metaverse on Cardano.
NFT games can update hero or item stats on-chain to ensure all user NFT information is not lost when the game server goes down. Different games can use the information of an on-chain game to create interactivity with their game.
NFT and NFT games can integrate NFT 2.0 into their projects to increase NFT sustainability and interoperability
What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?
There are a couple of issues of interest when an NFT can contain many different assets from different issuers. Who will receive the revenue from selling these NFTs?
Solution: We will encourage NFT issuers to work together to clearly divide the benefits between them when integrating their digital assets onto the same NFT