Dynamic NFTs in Art: Unlocking the Potential of Digital Art

hey hi I'm Rembrandt Flores I'm the founder of eight commas we are a solution for nfts and blockchain companies and basically what we do is amplify companies in web 3. um our panel today is going to be about Dynamic nfts hopefully you guys know what they are if not that's okay I have people on stage I can explain them all to you uh the first thing we're going to do is do introductions and we'll start with Lauren from chain link labs hi everybody GM my name is Lauren Halstead from chain link Labs chain link Labs takes off-chain data and puts it on chain to make blockchains useful at chain link I work on Dynamic nfts for sports media and entertainment thank you so much jiho with axi infinity and even uh can we get middle mic testing okay nice what's up everybody I'm jiho I'm a co-founder of Sky Mavis we're the inventors of axi infinity and the Ronin network axi is the number one nft project by all-time volume we've onboarded millions of people to web3 and uh the evm ecosystem uh and uh yeah like our goal with axi was to onboard the world to web3 through something that's nostalgic and fun uh right it seems like right like crypto can be so abstract and boring at times that we wanted to create something that would bring about that childlike sense of wonder and while we built out actually we also built the infrastructure to power web through gaming so that manifested in the Ronin Network which we see as becoming the premier place to launch and scale web3 games Carissa with you and far good shoes there you go hi I'm Carissa winnet I'm the VP of operations review and far we're an IP minting Solution that's a limited the friction of bringing web 2 into web 3 and our whole purpose and goal is to empower the IP user with um with royalties Jordan hi guys I'm Jordan Lyle I am the founder and CEO of a company called Venture Punk and Venture Punk is a web 3 Venture Studio or product Studio we really like to take a bunch of shots on goal in these uh Builder days of web 3 and we release fun and experimental uh projects and platforms we recently launched levels.art which is an on-chain gaming platform and we recently also launched raccoons which is a CCO story driven world so we do a lot in the world of like interactive nfts so I'm really excited to dig in amazing so we're going to Dive Right In so you guys what are Dynamic nfts and how do they differ from static entities explain how creators and artists would prefer a dynamic nft versus a traditional one I'll start so um I think there's a few different ways to define a dynamic nft so I'll just start with the way we do it at chain link Labs so we take off chain data and we put it on chain to update the nft in real time so any source of outside data that's available may be weather Sports data streaming data we are able to feed that through a smart contract into the nft and have the nft change dynamically based on that data so I'll give you a really easy example say the price of ethereum goes up and you have an nft with a Pikachu on it on a rocket ship the higher the price of ethereum goes up the higher the Pikachu goes up on the rocket it makes sense to me does anyone want to add on to Dynamic entries how it's different from Statics well the way that I look at it right is like we all grew up many of us with uh Tamagotchis right and I think I see dynamic nfts as very comparable to Tamagotchis where you put your love your care your attention into an nft and you're then able to see it grow up before your eyes so I actually I I believe that Dynamic nfts are actually really really key in getting nfts to a more sustainable and emotional place where we feel these intense feelings of loyalty and affection and emotion towards our nfts and we're really excited to leverage that and show off the potential of dynamic nfts through our products like oxy Infinity I agree with both of those comments they're actually really amazing allergies I think for us it's more it's all of that but also giving the user the ability to actually create utility for their nft utilities have been a vehicle up until this point now they're becoming more of you know there's the different the versions of the cars when they're invented we're now getting into the really cool like 1960s cars where they have a lot of muscle and a lot of beef behind them and dynamic amenities are that engine within that nft that's going to allow you to see the world differently and feel what the artist is feeling or feel what the musician is feeling it's creating an immersive experience for not just the artist but for you and that experience can change based on what you what nft you have and what code's been uploaded in that smart contract so I'm a huge fan of nfts uh I love static nfts things like from art blocks and crypto punks and like I just love everything about collecting nfts and it it makes sense that the first you know wave of popular nfts were you know skeuomorphic in a sense where it was an image a static image uh whether it's generated on chain or someone uploads a JPEG uh that's amazing but it's like okay we have the tech to build something really cool and we have the tech to get like codon chain and we have the ability to um you know using chain link to talk to offline data so we should be exploring other ways to make this even more immersive even more fun than just looking at a cool like no no one loves crypto punks and like fidenza is more than me but there should be you should be able to really engage with these things um that's what it's all about yeah okay good I'm sure everyone wants to know like how are we going to make more money using Dynamic nfts right so what are these new revenue streams and these business models that are going to open up from using dynamic nfts not Financial advice do your own research all that uh get that out of the way yeah well you know from my for so context I'm a like serial Builder so we continue to build things and we think that this unlocks just another tool in the toolbox uh you know we're experimenting with like burning mechanics we're experimenting with getting a mini game on chain um but imagine if you could actually have your game change based on the time of day or the game change based on what other players are doing uh there are all sorts of different aspects here so for us as a builder I think there's an exciting Revenue opportunity because we'll be onboarding more and more projects we'll be uh issuing more and more assets onboarding more users um and it's just like it's it's going to be you know it's going to bring success to the entire market so everybody everybody's involved right Carissa there's so many ways this is going to create Revenue I think for multiple different Industries one that we're focusing on is royalties for artists in general you're a musician let's just give you that example if you're a songwriter collecting your royalties like extremely extremely difficult I believe the statistic with Spotify was 40 of royalties aren't distributed out that's 40 of money that's left on the table for artists for businesses and things of that nature so being able to enforce that at the Smart contract level and not have to hire someone to chase down your royalties is going to create a revenue stream there alone but now add into gaming if you're in gaming and you can now create you'd have like have a a weapon that you've created and you can your weapon changes based on what levels you get to and you can sell that weapon on at the end of T Marketplace that becomes another version there's immersive art experiences there's so many opportunities that are out there right now that are going to open up and we're scratching the surface and talking about the the easiest route wait till we get into this for the next five years and what starts to immerse jiho well I see Dynamic nfts is really important to reducing the entire Industries Reliance on speculation right if we're able to put our Blood Sweat and Tears into our nft and see it improve before our eyes when you can look at someone's nft and if not being about okay I look at that person I see your nft and I know how rich you are I want to look at your nft and know what you've accomplished I want to know what you've done I want to know the experience that you've shared with this nft if Dynamic nfts can achieve that then will be a lot closer to being resilient to uh bear markets right like here in traditional gaming traditional Collectibles and traditional art markets these are actually very uncorrelated to the global global economy the fact that nfts are still very correlated to macro means that there's it needs to decouple from uh liquidity and speculation and I see emotion as being really fundamental to achieving that so I I believe that Dynamic nfts are the next meta to unlock that right what have we seen recently we've seen these pfp projects just like horizontally expanding Supply through airdrops that's not it's also like in the long run you run out of uh you run out of demand what we need to see is vertical progression of nfts and that will actually also contract Supply in some ways as well when perhaps one of the crafting ingredients you need to upgrade in nft is a pre-existing nft from that collection amazing Lauren did you want to wrap that up yeah I can give an example about sports data so a project we work on worked on was the NBA playoffs last year so during the playoffs of every game the real-time data was fed into the sports nft and that nft changed dynamically images and different cool traits were put on that nft based on the performance in the game so if you were the first person to have that Stephen Curry card last year that's just going to keep um accumulating value over time so I'm like 100 years down the road you have the first basketball Dynamic nft that ever existed and I also think just as a huge audience like to mainstream and onboard more users like so many fancy Sports users out there so this could only just bring more people into space great so how does the scalability of dynamic nfts impact their potential use in the art World Chris I want to start with you I think when it comes to scalability it's going to impact sorry I'm losing my voice it's going to impact the art World tremendously um this is just the first iteration of it smart if we can enforce this in the smart contracts it's going to change how art impacts culture art created the first language was not math it was not language it was Art it was cave paintings in a wall and that built a culture that built our experiences in life which then created the ability to have a language and math so if we can now enforce royalties specifically what we're working on at the protocol level what happens is we give artists the ability to continue to create art and restructure our society there's a lot of turbulence in our society right now and what we really need is as the artists is the makers is the creators to come in and reshape what we are and I think scalability is I think it's scalable I think it's going to be difficult I don't think this is an easy job but I think we have a lot of great minds in this room that are going to help us build this up but I think it does start with the understanding of the pro enforcing it at a protocol level Jordan did you want to chime in on that yeah when I think about scalability you know it's about the tech and uh for what we're doing at Venture Punk is we're trying to think okay what can we get on chain what what can we uh what can we do without having to refer to uh ipfs or AWS or whatever what what can we what can we uh store on chain and we're we're limited right because there's only amount of certain amount of data that you can put in a smart contract uh but we've been able to compress things down pretty you know pretty significantly that we can store a lot of information on chain but we're still limited um with layer twos and other storage options uh it really leads to the more and more interactivity more and more you know um Hi-Fi sort of uh you know we're moving towards you know more and more Triple A style games we can get more uh immersive you know activity on chain so it really you know when we can especially when we're referencing off-chain data and these are more Dynamic we can uh create a much better user experience and it really helps this whole whole thing scale I know you guys at chain link are trying to figure this all out yourselves what are you guys doing in terms of scalability for this in terms of scalability um we're just continuing to give more access to more apis and making it easier for developers to access those apis we actually just launched functions the other this week so that's going to make it easier to onboard more developers into the space to access that off-chain data so they can just have more cool things to build the scalability question right yes okay well so the more things that you can do with an nft the greater demand there will be for uh scaling Solutions with axi we had axi on ethereum in 2018 2019 but because you could do so many things with your axi uh breed it um you actually had to morph it from like a baby to an adult because there were so many transactions that people were making we had to actually create our own scaling solution right so that's why we built Ronin so as we see more Dynamic nfts come into play you'll start to see more projects launching on layer twos on side chains right now with the pfp it's like you just look at it right like you don't actually do much after you mint it and therefore it's okay for these things to mainly live on ethereum but as you start to get nfts that you're interacting with on a more daily basis you're going to see a lot more demand for uh yeah for some of the scaling Solutions out there so what are the potential use cases uh for dynamic nfts what are you guys all doing and what are you seeing in your different worlds gee hell go ahead I know you want to talk about I'm really excited about this one so go ahead so with axi right everyone knows that okay like you can breed your axes and create more axes and there are certain tokens that are required to create more but this is still around horizontal expansion of Supply but when we launched the first original axi white paper in 2018 our vision was for an nft that you could form this really close emotional bond with over time and I lived this I actually gave my dog away to my parents in order to move to Vietnam to follow this crazy nft dream way back in 2018. so I and during that summer that first summer away from home my axes were my pets and Dynamic nfts right will allow for the owners to really customize right like the appearance of their axes based on what they've done with it right so if I have level one actually uh level one eyes for my for my axi nft right I may need certain crafting materials experience points that can only be gathered through interacting and engaging with different games maybe even feeding or petting uh or talking or singing to my axi so this I I really see this as The crucial Next Step not just for axi but for the nft space uh in general because we can't just subsist on this stale meta of constantly expanding Supply we need to find ways to deepen our relationships with individual nfts I want to have my Pikachu uh axi the one that I most identify with and being able to upgrade and update your uh nfts on chain will make that possible so I can't really overstate enough uh how important this is I actually think this is existential for the space to move in this direction amazing Jordan love the passion I'm yes we all love his passion equally excited yeah so the whole point of venture Punk my company is to take several shots on goal really experiment with like what's what's new and exciting and Innovative about blockchain and right now you know we can build anything but we're focused on nfts particularly two projects one called raccoons which is our storytelling Choose Your Own Adventure type of universe and one that's more gaming focused called levels.r they're both on chain and uh in both cases we can do similar things where we can now instead of just looking at your nft or you know we can upgrade them so everyone got to Mint a baby raccoon cartoon nft and by uh burning two babies you got a toddler by burning two toddlers you can get a teenager but all the way up to like this old wise raccoon and that was just kind of an early way of like you can evolve your character speaking of Pokemon you can evolve your characters on chain but that was just a really simple implementation now with this idea of dynamic nfts where you can pull data in into the nft you can have so much more immersive fun storytelling Dynamic experiences where maybe my experience with the project is totally unique to me and what I'm holding and what I'm doing in my on-chain activity versus your experience which is customized to you so it really allows for multiplayer but also like single player custom experience that you wouldn't otherwise be able to get Carissa did you want to chime in real quick absolutely I think in this particular instance it's going to it's going to unlock a lot of things um if you're a sports fan I loved watching the I love going to Laker games with my dad if I had an nft where every time I went to a Lego game with my dad I earned something which got me to meet Kobe Bryant with my dad that would be a memorable experience that I would never forget nfts because they're Dynamic every time you go to the concession stand and you buy concessions you get the opportunity to to get a free hot dog or a free soda this is tangible utility being updated onto your nft immediately and it creates an emotional experience and bond with not only what you're doing in that moment with the piece of art that you own this is how it's going to actually grow and create things if you're a musician and you want to really engage with your fans you get to reward them for their fandom and as a fan Taylor Swift is the best example of this her fans are the most fanatical if her fans are constantly being rewarded for being her fan imagine how much more she can get from them it becomes an experience where she says you get these special shirts if you do this go out and vote you if you show me you voted sticker and you can prove it you get this we can actually create not only an emotional connection utility but we can actually create a change based off what something so small but it's so impactual yeah just a mirror that um just that connection with an artist so I'm working on a project right now I'm very deeply attached to the house music community so we're creating two levels um this higher level golden nft that you can get by retroactively going back through somebody's history to all the shows they've gone to and then all the shows they'll go to in the future so every time they attend a show they'll receive more loyalty points and the more and more points they receive the more they're recognized in the community and then the people who are promoting the shows can say hey that person in the crowd their number one influencer they're coming backstage today like keep going maybe you get a shot to DJ so there's just so much stuff you can do and I'm so excited about it this hasn't been able to be possible until this technology has existed so extremely excited to see what's to come with it so I think it's very clear how Dynamic nfts can change our world um we have three minutes left now let's talk about the rest of us we represent the less than one percent how do we get the normies the 99 of the world to care about entities now Dynamic entities explain to us how we're going to get them to join us on this journey so do you want to start and then we'll go to jiho eliminate the friction eliminate the friction people don't need to know it's on the blockchain they don't really need to know this my dad doesn't need to know it's on the blockchain he just needs to know what it does and how to use it and needs to be simple there's a conversation between decentralization and ux they're both extremely important my personal opinion opinion ux brings the users and the decentralization decentralization is what we're looking for I think what it really comes down to is eliminating friction and making it simple and easy see how well I see web3 as a movement right and every movement starts with this Grassroots passionate Grassroots passionate uh community and at the beginning it's just about having as much fun together right of course and other people eventually from the outside looking in they're like well why are those people having so much fun right now I think right like outside of bull markets people are not actually having enough fun in crypto sometimes uh are we not having to attract are we not having problems this is the start this events like this are definitely uh really important we're and events like this are I've I've met so many people who are uh new to the space uh here but I think actually like rather than we have to like find ways that engage our core community and show to the world that we're having fun right like I always see I call normies Muggles right because I feel like it's a little bit more it's a little bit more appropriate right but why do mug why do Muggles why do people want to do magic right like the sorcerers the Wizards they're not like out there like try begging uh Muggles to become Wizards right they just they can do magic so all Muggles want to become Wizards right I think that's actually uh super important like what are the benefits of being in this space and right now it's actually a little bit abstract so that's that's why I keep coming back to this point of having fun having an emotional connection to the assets that we own in the space that actually presents a clearer picture to uh onboarding that isn't reliant on this wave of speculative Demand right right now it's like I think a lot of you guys you probably have normies that get involved in crypto during the bull market but then right they might lose a lot and then they leave right so yeah it has to be more than a financial benefit there people have to understand the movement they have to make friends within the space yeah we have to make them to care a user acquisition right you think about like what is the aha moment right what is the aha moment in crypto other than making money it might be like making five friends in the space it might be eventually in the future right having an nft that you've uh used in more than x experiences right Jordan how do we get them to care I've been thinking a lot about how to bring people in the web 3 for a while prior to you know going all in on nfts I was really thinking about defy I worked at consensus for a few years and really thinking about okay how do we bring these normies into this defy world and it sometimes you just bang your head against the wall with nfts it unlocks even more use cases for this Tech and it gets into art and gaming and culture that I think is is is so much more fun and uh what we've been trying to do is like let's instead of trying to onboard people let's just have a good time with this Tech and if we build something cool then the people will come so thinking about uh you know welcoming people rather than trying to drag them into what we're doing I I still think foam was the way in that's what I do post all the fun I'm having here at all these events and they're like where are you I'm at eat Denver what's that then the conversation starts it's all fun right this all should be fun um and we have to tell them we're making money because they always say like are you guys making money yes we're making money some of us are um but that's all the time we have today I want to thank you Jordan Carissa jiho Lauren for joining us on stage thank you guys so much for listening uh to the world of dynamic entities and hope you guys stick around for the next panel thank you GM GMG