Phygital NFTs: Converging Physical World Assets With Virtual
Posted By : Priyansha Singh | 15-Sep-2022
Everything You Need To Know About Phygital NFTs
As technology is undergoing an exponential transformation, everything from static images to online transactions is getting highly secure, robust, transparent, decentralized, and digitized. We are now beginning to witness the real and virtual worlds synergize in intuitive and interesting ways.
“Phygital” is probably one of the most appropriate ways to comprehensively describe this interplay. The portmanteau term is loosely defined as any experience that amalgamates both physical as well as digital elements. Over the years, it has seen an inflamed rise in online searches across major industries all around the world. This is perhaps owing to the aftereffects of the pandemic or “phygitalization” that has fuelled major breakthroughs and innovations in futuristic technologies such as the metaverse and NFTs.
NFTs, in particular, have spread their wings towards pretty much everything, and physical items and collectibles are not an exception anymore. In this blog, we will discuss the inception of phygital NFTs, their applications, and how big brands and businesses are leveraging them for a multitude of use cases and opportunities. So, let’s get started.
Understanding The Meaning of Phygital
From a perspective of a non-technophile, phygital is described as a functional blend of physical and digital experiences. If you look closely, such experiences have already taken the entire world by storm and have been furnishing exceptional use cases. For instance, the metaverse presents a vivid and daily relatable interpretation of how phygital would supposedly look like in the real world.
The untamed proliferation of neoteric technologies in the existing digital age has also contributed to the hype around phygital NFT projects and their future.
While the background of phygital might extend a simple explanation of the term, it essentially defines any service, product, or experience that enables the merger of digital technology with various physical elements.
You can contemplate the value of a phygital NFT marketplace for the future by reflecting on practical examples and use cases of the ‘phygital’ phenomenon - the metaverse.
What Are Phygital NFTs?
The soaring popularity of phygital NFTs has become one of the hottest trends in the new decentralized realm. They have come a long way and presented themselves as significant physical+digital experiences for users.
You can define phygital NFTs as phygital assets, which have two distinct segments. One of the segments refers to digital assets in the form of metadata such as smart contracts that are embedded in an NFT. On the other hand, the second segment of phygital NFT represents an actual physical asset such as clothing, tickets, 3D models, or properties.
Such types of non-fungible tokens have the potential to furnish an expansive range of possibilities and use cases that can enable collectors and investors to find new approaches and gain undisputed ownership of unique items. For instance, real estate ownership disputes can be transparently solved by authentic proof of property ownership through NFTs. Phygital NFTs will also help them to access novel and engaging experiences and to expand their digital collectible treasury.
Benefits of Phygital NFTs
- Enhanced connection between both worlds
- More immersive user experiences
- Interactive attributes and abilities
- Easy authentication of products
- Added engagement factors
- Quick availability of items
Importance of Phygital NFTs
- Proof of ownership
- More augmented reality in NFTs
- Better in-person experiences
- Enhanced real-world product authenticity
- Increased transparency
Blockchain Networks That Can Be Used To Create Phygital NFTs
- BNB Chain/BSC
Examples of Phygital NFTs
The most pivotal aspect that you need to understand about phygital NFTs and their marketplaces is their examples and use cases. Where can you find the instances of phygital experiences and applications in the diversified realm of NFTs? Here are some of the prominent examples of phygital non-fungible tokens:
- Physical Versions of Digital Assets & Collectibles
The physical version of digital assets, as well as collectibles, essentially entails NFTs directly associated with the tangible objects that are open for purchase. One of the foremost sectors where such applications and use cases of phygital NFTs can gain unprecedented momentum is a fine art. The physical NFTs portraying fine art could be traded in a similar way as the real artwork.
Subsequently, NFT artwork can also be redeemed for acquiring or owning physical art in the future. The impact and effectiveness of phygital NFT projects have enabled a plethora of artists to garner success in selling their artworks or creatives through NFTs. Artists can get extensive exposure for their work whilst also ensuring full security against plagiarism, fraud, or counterfeiting. The consortium of NFTs with physical artwork can sweep away the intermediaries – so that artists could directly interact with the buyers. Another pivotal highlight related to the physical version of NFTs or collectibles would point eminently towards a generation of royalties with each NFT sale.
- Metaverse Fashion & Merchandise
Fashion & merchandising in the metaverse is another paramount example of phygital NFTs. A lot of famous luxury fashion brands such as Prada, Balenciaga, and Charlotte Tillbury have also stepped inside the NFT ecosystem by emphasizing enhanced, intuitive, and immersive customer experiences. For instance, Nike has introduced their new virtual sneaker collection in the form of non-fungible tokens. At the same time, many eCommerce businesses are also actively experimenting with virtual fashion stores that can furnish apparel and wearables for use in the metaverse.
The incessant power of NFTs facilitates the conversion of any physical commodities or assets such as artwork, real estate, stocks, and multimedia files into NFTs. Moreover, you can think of NFTs as unique and unobjectionable proof of ownership for the physical asset in concern.
Looking For NFT Development Services For Your Business?
At Oodles Technologies, we offer all-inclusive NFT development services to global businesses across a myriad of industries such as eCommerce, real estate, media, entertainment, gaming, and more. As an established NFT development company, we empower organizations to overcome complex operational challenges through groundbreaking technologies such as metaverse, blockchain, 3D modeling, edge computing, AR/VR, and video streaming, just to name a few. With a seasoned team of in-house developers, we assist startups and business owners to harness the power of Non-Fungible Tokens and create indispensable digital assets with full ownership, transparency, and security. If you are looking for NFT development solutions for your project related to art, music, video, in-game assets, collectibles, metaverse properties, etc, feel free to drop us a line. Our experts will get back to you within 24 hours.