# Static Nature of Digital Assets

<figure><img src="https://3896471484-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpyRWaJ4Sh1el2nk3z1Iq%2Fuploads%2FLy5FywtTTGRzHQ75jYdS%2Fimage.png?alt=media&#x26;token=1b71355f-158d-4186-94c2-827a9f7e89e4" alt="" width="375"><figcaption></figcaption></figure>

Blockchain technology's hallmark of immutability grants it unparalleled security and trust by ensuring that ownership records are permanent and unalterable. This fundamental attribute solidifies the integrity of transactions across the blockchain, cementing its role as a cornerstone of digital trust and authenticity. However, the immutable nature of blockchain unfolds complexities when applied to the evolving landscape of digital asset metadata within dynamic digital ecosystems.

The application of blockchain to digital assets, particularly in their metadata, which details attributes and functionalities, reveals a nuanced challenge. Fields that thrive on innovation and interactivity, such as gaming, digital art, and social platforms, often require assets that can adapt and evolve over time. The traditional immutability of blockchain assets, though ensuring security, imposes constraints on these assets' flexibility and capacity to evolve, potentially stifling innovation in sectors that benefit from fluidity and adaptability.

Addressing this challenge, two primary methods have emerged, allowing for the update and evolution of digital asset metadata while navigating the constraints of blockchain immutability:

## **Smart Contract-Driven Updates**

This method involves the collection owner or deployer initiating changes to the metadata's URI through smart contract functions. While this enables the metadata of digital assets to be updated, reflecting changes in attributes or functionalities, it centralizes control over these updates.&#x20;

For instance, collections like [Pudgy Penguin](https://etherscan.io/tx/0x63554e035d2ee4f7441b6790401b130b1ef670c9375d2baf7359c697051028b4) have utilized this [method](https://etherscan.io/advanced-filter?fadd=0xbd3531da5cf5857e7cfaa92426877b022e612cf8\&tadd=0xbd3531da5cf5857e7cfaa92426877b022e612cf8\&mtd=0x55f804b3%7eSet+Base+URI) to refresh their asset metadata, demonstrating a centralized, albeit flexible, approach to asset management.&#x20;

<figure><img src="https://3896471484-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpyRWaJ4Sh1el2nk3z1Iq%2Fuploads%2Fpr5j3g3mc6xTW9kS1cif%2Fimage.png?alt=media&#x26;token=413fa45b-f24e-4984-8b1e-ea83e9bcd3f5" alt=""><figcaption><p>Pudgy Penguin calls Set Base URI function to update tokens' metadata on Jul 25th, 2023</p></figcaption></figure>

This method, though effective in keeping digital assets current, raises concerns about centralizing power in the hands of the collection owner, potentially deviating from blockchain's decentralized ethos.

## **Centralized Database/Server for Metadata**

Alternatively, the metadata's URI can point to a centralized database or server under the collection owner's control, allowing for the metadata to be updated directly on the server without modifying the blockchain record. This method, employed by collections such as [Mutant Ape Yacht Club](https://etherscan.io/address/0x60e4d786628fea6478f785a6d7e704777c86a7c6#readContract), offers flexibility in asset evolution without needing blockchain transaction updates.&#x20;

<figure><img src="https://3896471484-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpyRWaJ4Sh1el2nk3z1Iq%2Fuploads%2FRDkbIqLdn8WGlgpuhx6a%2Fimage.png?alt=media&#x26;token=aa41ec7d-fc19-4dc1-8ea3-14f623c5791d" alt=""><figcaption><p>The Base URI of MAYC tokens is <a href="https://boredapeyachtclub.com/api/mutants/7290">https://boredapeyachtclub.com/api/mutants/</a></p></figcaption></figure>

However, like the first method, it concentrates update control in the hands of the asset issuer, presenting similar centralization concerns.

These approaches, while addressing the need for digital asset flexibility and ensuring assets remain engaging and relevant, highlight a crucial tension within blockchain's application to digital assets: the balance between maintaining immutability for trust and security and allowing for the adaptability necessary in dynamic digital sectors. This balance is pivotal for the broader adoption and integration of blockchain technology, especially in areas eager to harness digital assets' full potential through continuous evolution and user interaction.

## NFT Marketplaces Reflecting Metadata Update

In the current landscape of NFT marketplaces, OpenSea's approach to reflecting updates in NFT metadata lacks depth and transparency. While users can see when an NFT was last updated, this information is limited—it doesn't specify what was changed or how the asset has evolved. This system, primarily centralized, means that updates to an NFT's attributes are managed through mechanisms that are not visible or easily understood by non-technical users. Consequently, the actual history and evolution of an NFT's metadata become opaque, as most users are not adept at navigating blockchain explorers to uncover the full transactional history.

<figure><img src="https://3896471484-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpyRWaJ4Sh1el2nk3z1Iq%2Fuploads%2FzvvIeTuefcyBcERlYxpV%2Fimage.png?alt=media&#x26;token=e6307f7b-7808-49f1-827e-9e54b40fa574" alt=""><figcaption><p>OpenSea showing last updated time <a href="https://opensea.io/assets/ethereum/0xbd3531da5cf5857e7cfaa92426877b022e612cf8/4787">https://opensea.io/assets/ethereum/0xbd3531da5cf5857e7cfaa92426877b022e612cf8/4787</a></p></figcaption></figure>

<figure><img src="https://3896471484-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpyRWaJ4Sh1el2nk3z1Iq%2Fuploads%2FlnCWxRP25nhvOIZELBeM%2Fimage.png?alt=media&#x26;token=f6be8443-c26a-491f-a0ee-0e640467c8ee" alt=""><figcaption><p>OpenSea showing a token with immutable metadata <a href="https://opensea.io/assets/ethereum/0xbc4ca0eda7647a8ab7c2061c2e118a18a936f13d/5930">https://opensea.io/assets/ethereum/0xbc4ca0eda7647a8ab7c2061c2e118a18a936f13d/5930</a></p></figcaption></figure>

This gap highlights the need for a more decentralized approach to updating NFTs—one that ensures changes are transparent and traceable, providing users with a clear and comprehensive view of an NFT's history. Such an approach would democratize access to information, allowing all users, regardless of technical expertise, to understand the updates of an asset's attributes. It would offer a detailed, user-friendly history of an NFT's states, fostering greater trust and engagement in the dynamic digital assets market.
