Hmmm maybe I can help here. I think you are confusing dynamic with how DNS is propagated. Maybe an example will help. Lets say Anand puts up a new server up. He has to make an entry by hand in his DNS server for it. The next DNS server up the line compares notes, in a way, with Anand's DNS server and notices they don't match. That server adds anands new one to its list. And so on, and so on.... till all DNS servers know what Anand's new entry is. The difference is that someone somewhere had to make an entry. In a dynamic system the system itself notices a new server and makes its own entry, without human intervention.