The term Phygital is hardly new, the Australian agency Momentum coined the phrase. Physical and digital combine together to form phygital, physical digital non-fungible tokens is the abbreviation of phygital NFTs. They bring innovation and modification in NFTs in an attractive manner so that people don't lose the hype. Phygital NFTs is a new version that has come out like that.
The arrival of NFTs strengthened the crypto and decentralized world and brought about major changes. By representing the ownership of these digital assets, the concept of each NFT for each unique asset became apparent. Nowadays, NFTs have also found applications in representing physical assets. This is how the phygital NFTs rise to the ground and make the new wave in this innovative world.
What are Phygital NFTs?
The highly geared technology called phygital NFTs is becoming a new trend in the virtual world as it is decentralized. These are closely related and combined with the existing NFTs. The working formula is simple, the blockchain developers integrate the physical and digital by expanding the features of NFTs connected with real-world objects or assets.
These NFTs are often used to describe experiences or products that combine elements of both the physical and digital realms. The best example of phygital NFTs is online shopping of offline products.
Tokenization of a physical item is a backup to the proof of ownership recorded in the blockchain ledger. Phygital aims to bring decentralized and immersive experiences to the physical world, meaning NFTs can now be backed by real-world assets, adding to their rarity score, which defines their exclusivity and values.
Benefits of Phygital NFTs
NFTs are a beneficiary of the digital world. The arrival of these phygital NFTs is a high-level advantage in securing the physical and digital worlds. Phygital NFTs are many times more beneficial than the physical way of traditional collectibles and artworks.
These phygital NFTs are more easily tradable and exchangeable compared to others. With the help of high-end blockchain technology, they provide seamless and secure transfer of ownership. Additionally, NFT Market provides a clear and verifiable record of ownership and provenance, making them valuable for authenticating and validating physical assets. Phygital NFTs add more value to physical objects in the digital world.
Phygital NFTs efficiently add more utility to digital and physical assets.
These NFTs open phygital items in collaboration with other big brands or items.
Physical assets add more rarity scores to their corresponding NFTs. Thus the value of Phygital NFTs rises.
How to redeem Phygital NFTs?
The first and easiest way to redeem Phygital NFTs is by burning them. Nouns Vision Project provides its users with commemorative NFTs in their wallets and burns them to get physical NFTs which is a perfect example of burning NFTs.
Some give a replacement NFT after redeeming the original for a real-world asset/experience. This way, the buyer still has access to Nft’s utility, including access to exclusive communities and other opportunities.
Examples of Phygital NFTs
An exciting and booming phygital NFT is Metaverse fashion. Many big fashion brands have entered the NFT world by emphasizing revised and improved customer experiences. For example, Diesel forayed a famous Italian fashion brand to enter the NFT space with its “phygital” NFT wearable collection called D: Verse. It provides access to airdrops and discounted pre-sales for its users. It also gave holders invites/VIP access to their next events and several other exclusive privileges.
Another trending wearable NFT in the decentralized land is cool sneakers. Nike is here with their new virtual sneaker collection as NFTs. At the same time, many brands are experimenting with virtual fashion houses that offer clothing for metaverse users.
Owned by Nike, RTFKT represents a key brand in the Phygital sneaker NFTs. Each "Open Edition" NFT is paired with a pair of physical sneakers for all holders who acquire RTFKT NFTs within 6 weeks of NFT launch.
The first area of application of phygital NFTs is fine arts. NFT artwork can be redeemed to receive physical art in the future. The effectiveness of Phygital NFT has supported many artists to achieve success in selling their artwork through NFTs. NFT artist FVCKRENDER has teamed up with creative marketplace Avant Art to release two phygital sculptures. The most exciting use of phygital NFTs in recent times was Damien Hirst's 'The Currency'. The famous British artist created a collection of 10,000 spot paintings that create hype in the market.
The Future of Phygital NFTs
Until some time ago, the distance between the physical and digital worlds was very long. But, now innovative technology makes the big transition and blurs the lines between them. The interaction of these two worlds continues to grow, and phygital NFT burgeon with it.
Although NFTs started as a joke in the early days, their growth and importance have skyrocketed in the market today. The thing behind the growth of these NFTs is their increasing scarcity and value. This scarcity paves the way for the newly emerging concept of phygital NFTs. The two are no different, NFTs are "one of a kind" assets in the digital world and can be bought and sold like any other crypto. Phygital NFTs are also NFTs, but they represent digital proof of ownership of a physical asset.
We can apply this paucity of phygital NFTs to real-world objects, think that you buy a piggy bank in the physical world and that having a complete NFT ledger of every previous owner, along with the exact dates and price details that it was bought and sold in the digital world.
If you want to flex your digital assets physically or authenticate your physical product on the blockchain network, phygital NFTs are the best solution. Adding these NFTs to your business in a legitimate form will take your business to the next level as NFTs grow in the market.