How to build NFT using Chainlink Oracle

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How to create dynamic NFTs using Chainlink oracle?
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How to create Dynamic NFTs using Chainlink
oracles?
One of the latest Internet sensation is NFT
trading. If you are looking forward to or are
already into NFT trading, you might also be
interested in learning how to create NFTs. In
this insight article, we will discuss how to
create NFTs using Chainlink oracle. Do you know
there are 16 ways to create Non-Fungible Tokens
(NFT) using Chainlink oracles? And the most
worth mentioning fact is that Chainlink oracles
facilitate the creation of dynamic NFTs, which
are said to be the next level evolution over
static NFTs. This article will cover dynamic
NFTS in detail, especially their uses cases and
the role of Chainlink oracles. However, for the
beginners, there is a brief introduction
explaining the concepts of Chainlink oracles and
NFTs. If you already have a clear understanding
of oracles and NFTs, you can skip the first three
sections and straight away dive into reading
about dynamic NFTs. Table of content What are
NFTs? NFTs stand for Non-fungible tokens they
are cryptographically secured tokens that exist
on Blockchain and represent ownership of
something unique. NFTs are popular as digital
assets that can be bought and sold in NFT
marketplaces. They are not to be confused with
cryptocurrencies like Bitcoins and Altcoins.
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Though cryptocurrencies are also crypto tokens,
but they are fungible, which means they are
exchangeable or interchangeable with another of
like-kind. For instance, you can exchange one
bitcoin for another bitcoin because their worth
or value is the same. But 1 NFT doesnt equal
another NFT, and that is why they are
non-fungible. You cant exchange or replace one
NFT with another NFT, just the way you cant swap
two diamonds. Every NFT is unique because it is
encoded with a unique blockchain-native
identification code. To understand NFTs better,
it is important to understand their usage. What
is the use of NFTs? Around us, there are piles of
digital content such as digital artworks, games,
videos, Gifs, images, and other kinds of digital
design and text content. Now, one issue with
digital content is that they are easily
replicable, so there is the challenge of
authenticating the ownership for digital
content. For instance, if an artist has created
a digital art, how would he proof his
ownership. Certainly, he can copyright it, but
when he sells the art to a buyer and ownership
changes, what is the way out to maintain the
records for the change-of-ownership.
Another challenge is that of artists access to
the secondary market. When digital assets are
sold in the secondary market, what is the way
for the artist to earn a royalty for it. NFT, as
an indestructible and immutable record of
ownership stored in blockchain, is the solution
to all these challenges. Tokenization of
assets NFTs are digital tokens that represent
assets, mostly digital assets like digital art, a
rare NBA shot clip, an audio file, a video, an
article, a popular tweet or a game
collectible. Although mostly applied to digital
assets, but NFTs can also be used to tokenize
physical world assets like property, lands,
expensive commodities, etc. Now, it is important
to understand that NFTs are not the assets
themselves they are just the digital records
of those assets. NFT as a unit of the record is
stored in the Blockchain, whereas the real asset
can be anywhere, in a personal computer or a
server. Immutable proof of ownership NFTs are
so valuable because they are the immutable proof
of ownership that validates the real owner of an
NFT-backed asset. The owner can sell the NFTs in
NFT marketplaces and earn profits. It works the
same way as Stock markets and cryptocurrency
markets. The owner can quote any price for his
NFT, but whether he will receive his quoted price
or not depends on various factors, like the
popularity of the NFT creator. (1 liked)
Many NFTs have been sold for whipping values in
millions. Selling of assets
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NFTs are the new-found ways for digital artists
to sell their artworks directly to buyers
through NFT marketplaces without depending on
intermediaries. Also, NFTs extend artists reach
to secondary markets. For every change-of-hand,
NFTs can continue to earn royalty for the
original NFT creators. Even, game publishers,
fashion brands, celebrities, and the real estate
industry are using NFTs to tokenize their brand
items for selling them out in the NFT
marketplaces. Trading of assets The market for
NFTS has surged to 2.5 billion in first-half of
2021, and with that, the popularity of NFTs as a
tradable digital asset has grown exponentially.
Not just content creators and brands are
interested in creating their NFTs to monetize
their digital work, but even investors
participate in NFT trading. They buy NFTS, wait
for value appreciation and then sell it. What
are Chainlink oracles? Blockchain technology is
unprecedented, but it has one limitation that
extends to NFTs also. Blockchain is static,
which means it can interact with on-chain data
only. Its inability to interface with real-world
data systems and sources imposes many limitations
on the usability of Blockchain as a solution to
real-world problems. Chainlink decentralized
oracle network (DON) plays an important role in
resolving this connectivity problem. Chainlink
oracles can securely and reliably connect
blockchain smart contracts to external data
sources and systems. This way, it enables
Blockchain to interact with off-chain data in
the real world. To understand in detail how
Chainlink decentralized oracles integrate with
Blockchain, enabling on-chain data to interact
with off-chain data, please read about Hybrid
Smart Contracts. What are dynamic NFTs? Being
powered by blockchains, NFTs are static because
they are limited to the blockchain world only.
But when you build NFTs using Chainlink oracle,
it is no more a static NFT. Chainlink-powered
NFTs are dynamic as they can connect to off-chain
data sources like IoT data, web APIs, and other
data providers. With its ability to interface
with real world data sources, dynamic NFTs are
much more relevant and usable. Also, dynamic NFTS
can leverage Chainlink VRF to interface with
existing backend systems, access
verifiable randomness and even trigger
cyber-physical systems. 1.The first step is to
fetch off-chain data through Chainlink oracles in
your NFTs smart contracts. This can be done in
three steps Chainlink price feeds It retrieves
the latest prices of assets in your smart
contracts. Chainlink VRF It consumes randomness
in your smart contracts. Chainlink contract
library Here, you can request receive data
from any API
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• For instance, if you are minting NFTs in Binance
  Smart Chain, then Chainlink Price Feeds will
  fetch and aggregate the off-chain data from
  multiple premium data aggregators and
• then delivers it onto the BSC network.
• Once the off-chain data is on-chain, you can
  query the data feed from your smart
• contracts, and depending on the values provided
  by Chainlink oracles, you can modify the NFT
  assets and proceed with the minting.
• Once minting is done, you can list the dynamic
  NFTs in the NFT marketplace platform for
  selling.
• Uses cases of dynamic NFTs
• Currently, there are around 16 use cases
  accessible to developers for creating dynamic
  NFTs using Chainlink oracle. These NFT use cases
  can be categorized into the following four
  categories
• Competition Based NFTs
• Game Performance
• NFTs for in-game items are popular. Chainlink
  oracles can use off-chain data to create NFTs
  for in-game items. This can settle competition
  outcomes by rightly
• transferring NFTs ownership among the players
  based on their game performance. For example, if
  a player owns an NFT for a special sword but
  loses a battle to another player, the NFT will
  automatically be transferred to the winner, who
• becomes the new owner of the NFT.
• Verifiable Randomness
• As an input, Chainlink VRF (Verifiable Randomness
  Function) can apply random
• traits to an NFT, such as the placement,
  creation, and distribution of in-game items.

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• Chainlink Oracle-based dynamic NFTs can be one of
  the innovative ways to incentivize certain
  consumer behaviors like on completing specific
  off-chain objectives, users can
• gain access to rare NFT tokens. For example,
  Chainlink can connect the data of the Fitbit
  band to an NFT smart contract and apply the logic
  that on completing a certain number of steps,
  the user will be rewarded with an in-game NFT.
  The same mechanism can be applied to link
  various real-world lifestyle data like students
  grades, eating habits and even IoT data to the
  minting smart contract to determine whether or
  not the user receives the NFT.
• Chainlink oracle NFTs can be used for event-based
  rewards like if a soccer player scores a
  hat-trick, five limited-edition NFT tokens will
  be minted throughout the city, and the finders
  will be rewarded with a special chance to meet
  the players. Same way, Chainlink
• can facilitate NFT based consumer participation
  rewards, replacing paper or digital coupons.
  Such a reward system will be highly accurate and
  automatically trigger fair distribution of
  rewards.
• Authenticity Verification
• Minting NFTs using Chainlink Oracle can transform
  how NFTs interface with existing
• systems. This kind of provision is especially
  needed for tracking unique real-world assets and
  incorporating them into the existing supply chain
  and financial processes. If NFT- enabled
  blockchain cant interact with existing
  infrastructure, then NFTs may exist only as
  isolated assets with little to no real-world
  adoption.
• But Chainlink oracles NFTs are transformative
  because they are useful in tracking physical
  assets, such as luxury items, products in a
  supply chain, rare artifacts and others. Quality
  control and counterfeit reduction are two major
  advantages of tokenizing real-
• world assets with NFTs, as they can easily verify
  the provenance of goods by querying the
  Blockchain.
• Chainlink oracles can help with certifications
  needed for verifying someones credentials. It
  can mint credentials as immutable NFTs on the
  Blockchain by directly accessing real- world
  data verified by authority-based approval.
• Valuation Updates
• NFTs are used to tokenize or represent assets,
  but the value of assets is not static. Thus,
  dynamic NFTs are needed because they are
  consistent and accurate in maintaining valuation
  updates. Using Chainlink oracles gateways,
  dynamic NFTs can access external data sources
  and bring reliable valuations to on-chain assets.
• Property, Land, physical commodities, all such
  assets that are tokenized with NFTs, can use
  Chainlink oracles to relay external data for
  adjusting the updated rates of the assets on
  crypto mortgage payments. Also, in scenarios
  where asset ownership verification is needed,
  then Chainlink oracle serves as a bridge for
  external applications to access the smart
  contract data. Oracles can even be used to
  provide the GPS location of physical

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What kind of NFT services are offered by
LeewayHertz? As a blockchain development company,
we provide services and solutions for smart
contract and dApp development, node creation,
wallet development, blockchain consultancy,
maintenance and upgrade. We take up on-demand
projects and also offer quick-to-deploy custom
solutions. For NFT, we provide all-comprehensive
services, and can help you with the
following Designing and developing smart
contracts for your NFTs Create NFTs for your
digital assets Launch your own custom NFT
marketplace Launching your own NFT marketplace
is another way to capitalize on the rage and
popularity of NFTs. With the growing popularity
of NFTs, even the demand for NFT marketplaces
has surged. Using our ready-to-deploy NFT
marketplace solution, you can promptly launch
your own custom NFT marketplace and cut the
time-to-market. For facilitating bidding,
selling, and trading of NFTs, LeewayHertzs NFT
white-label marketplace solution supports the
following features NFT Rankings on an hourly
basis Search filters The listing of tokens as a
collection Easy browsing by categories Unlockable
Content The option to add a collaborator Wallet
integration and much more. Our white label NFT
marketplace solution can help blockchain-focused
entrepreneurs, art platforms, start-ups, game
publishers and other interested businesses create
a vested NFT-driven business model. If you are
interested in creating NFTs for your digital
assets to retain an immutable record of your
ownership or to participate in NFT trading, you
can reach out to our team of N FT experts. We
also provided other NFT related services like
wallet development and smart contract
development.