Dynamic NFTs and their most serious security problems

Dynamic NFTs and their most serious security problems

The whole world is now talking about NFTs. But between the many articles and opinions, there is still a lot of half-knowledge in the crypto community. In this article we want to give you an insight into the topic of Dynamic NFTs and what role security plays here.

What are dynamic NFTs?

Let’s start at the beginning: what are dynamic NFTs? Most of the ones you know or maybe even collect as digital art or trading cards are static. This doesn’t mean that they cannot move. On the contrary, static NFTs can also be animated or appear in the form of videos. When we distinguish between static and dynamic in NFTs, we mean the data behind them. Static NFTs are immutable and have fixed features or data that reside on the blockchain. Dynamic NFTs, on the other hand, can change continuously due to external influences.

With an example, the whole thing becomes clearer: imagine you have a house in the metaverse that is a static NFT. That means, this house cannot change and will always remain the same house. A house, as a dynamic NFT could for example be extended, get a new roof, become dilapidated or be repaired. For example, if we collect digital art then we definitely don’t want your beloved soccer player to suddenly become a colorful unicorn. The biggest incentive for NFTs is precisely this permanent storage of assets on a decentralized blockchain. However, as we look toward gaming, dynamic NFTs, on the other hand, become essential.

Oracles, please tell me the future!

Now the so-called Oracles come into play. Oracles are third-party data feeds that connect the Blockchain to external systems, or in simple terms: to the external world. Imagine you buy a player card of a soccer player again. If he now changes teams or has a current game, the jersey changes accordingly. Another example: you are in a game and when the weather outside gets bad, your sword changes into an umbrella. Okay, the example is stupid, but makes the principle clear!

Security issues of NFTs

As expected, the last and – in our opinion – most important part is dedicated to the topic of security. There are four aspects that we will take a closer look at.


the enthusiasm for NFTs has also attracted hackers who steal private keys via Trojan attacks or try to replicate keystrokes with malware. In general, we recommend that NFT owners do not take screenshots of their private keys and do not carelessly store them in an easily accessible location, but rather in a physical, hidden location. In general, we recommend paying attention to good security.


Another topic that should not be neglected. Currently there are more and more copyright violations. Since you can quickly pull art from the Internet, some tend to make them NFTs without licensing rights of the original artist.

Repeat Sales:

Most NFTs are built on Ethereum and currently there is no way to prevent an exact same NFT from being published on another public chain.


The most central and currently unresolved issue facing the entire NFT community is storage. Anyone who buys an NFT basically only buys a hash, a sequence of numbers and letters. This hash in turn points to the element or image, which in most cases is stored on central servers. Most providers simply upload their NFT to central platforms, such as Opensea. The problem with central servers is that they can be hacked or the platforms can decide what happens to the images/items. And this is exactly what defeats the purpose of decentralization. On Ethereum itself, NFTs cannot be stored because the gas fees would be too high.

In the next part, we will give you insights into the topic of decentralized storage and which solutions already exist.

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