The emergence of Non-fungible Tokens (NFTs) in the blockchain or decentralized ecosystem was welcomed with funfair, dominance, and unprecedented adoption. Starting as unique digital items that could be bought with cryptocurrencies, NFT represents ownership of digital assets for individuals and corporate bodies on a blockchain network.
Over time, the application of NFTs moved from just digital collectibles to physical assets. This transition seems to be of great concern as experts wonder how NFTs can bridge a gap between phygital assets, i.e., physical and digital assets.
As such, this topic addresses the concept of phygital NFTs and what phygital NTFs are all about.
The word 'Phygital' is coined out of the fusion of 'physical' and digital. The term defines any product, service, or experience that merges technology with physical elements.
In the business industry, the concept of phygital retails seems quite popular as several stores run their products "phygitally" by having a physical presence and, at the same time, a digital presence that simplifies the process of product orders or purchase for their customers.
Advertising expert, Chris Weil, succinctly defined phygital as the immense possibilities for brands to engage with customers in both worlds.
What are Phygital NFTs?
Phygital NFTs are phygital assets with two distinct parts. One part is that of the digital asset is in the form of metadata. Examples are smart contracts embedded in an NFT on a blockchain network. The second part of phygital NFTs is the physical assets. This could be a property, ticket, or 3D model of an asset.
Phygital NFT is an encompassing term that seeks to solidify the growth of NFTs through concrete use cases in real-world scenarios. It gives NFT owners access to something real alongside their unique digital assets.
Examples of Phygital NFTs
1. Metaverse fashion items: One of the foremost examples of phygital non-fungible is in metaverse fashion items. Popular fashion brands such as Nike, RTFK, Prada, Gucci, and many others are leveraging the NFT industry by emphasizing revised and improved customer experience.
A phygital non-fungible fashion item can give you physical access to, let's say, actual designer shoes, which your avatar can also wear in the metaverse.
2. Physical versions of digital art collectibles: The emergence of NFT birthed an unprecedented rise in digital art sales. Through phygital NFTs, an artist can easily sell their artworks and get broader exposure for their crafts. Associating their physical artworks with NFT would remove the intermediaries and allow artists to interact directly with buyers.
3. Real Estate and Event Tickets: Phygital non-fungible token enables the conversion of any physical assets you can think of into NFTs. Real estate properties and event tickets are growing examples of phygital NFTs. The NFT, which is stored on a blockchain network, would become the unique proof of ownership of the physical asset in concern.
The concept of phygital NFTs gives us an insight into how we can have a perfect blend of physical and digital experiences. For example, imagine you have an NFT representing proof of your ownership of a given piece of a physical real estate asset. The NFT is what stores the digital data about your physical property, and that qualifies it as a Phygital asset.
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