A dynamic contract is a type of smart contract that can adapt its behavior based on changing conditions or inputs. Unlike static contracts, which execute predetermined terms, dynamic contracts are designed to respond to new information or events in real-time.These contracts are often used in decentralized applications where flexibility is crucial. For example, they can adjust parameters like pricing based on market data or user interactions. Dynamic contracts may integrate oracles, which provide external data feeds, allowing them to make decisions based on real-world information.Additionally, dynamic contracts can be useful in scenarios where conditions are unpredictable, such as insurance or auction systems. By accommodating changes, they enhance user experience and improve efficiency.In summary, dynamic contracts offer a more flexible approach compared to traditional contracts, enabling responsive actions based on a variety of inputs and conditions. This adaptability makes them particularly valuable for innovative applications.