PHYGITAL NFTs: THE FUTURE OF USER EXPERIENCE?
To begin, the term “Phygital” has gained significant traction in recent years, particularly in the form of NFTs. Phygital NFTs have become a popular trend in the decentralized technology space and have become a significant aspect of the Phygital experience for users. These non-fungible tokens offer a wide range of use cases, allowing collectors and investors to explore new ways of owning unique items. Moreover, phygital NFTs can also assist collectors and investors in expanding their digital collectibles collection or access new and captivating experiences.
Phygital non-fungible tokens consist of two distinct components, a digital asset and a physical asset. The digital aspect of a Phygital NFT refers to metadata such as smart contracts embedded within the NFT, while the physical aspect can be items like tickets, properties, or clothes. The Phygital concept has boosted the growth of NFTs by extending their use cases and representation in the real world. For instance, Phygital NFTs can help resolve property ownership disputes through providing verifiable proof of ownership.
Phygital NFTs Benefits
Proof of Ownership
Firstly, the key feature of NFTs is their ability to create digital scarcity, a concept not found in other assets. The digital art world has experienced a revival, particularly due to the newfound scarcity. However, the growth of the Phygital NFT market has been driven more by authenticity than scarcity. For instance, diamonds are a scarce resource, but they hold value only when they come with proof of authenticity such as a certificate from experts. On the other hand, an even stronger proof of authenticity would be if the diamond was featured in a major motion picture.
There is great potential for the future of Phygital experiences in the NFT space. Firstly, it can be observed that authenticity plays a crucial role in determining the value and status of an asset. An asset with a rich and interesting history can have an aura of authenticity and the potential for increased value. NFTs can provide the best proof of ownership which can enhance the value of physical objects.
More Augmented Realities
Then, the second important aspect of Phygital NFTs is the potential for using augmented reality (AR) technology. AR has opened up new avenues for combining physical and digital experiences in innovative ways. The Pokemon Go craze was only the beginning. NFTs and AR can join forces for some unique applications, such as allowing ownership of virtual real estate and assets in AR worlds and games. The use of Phygital NFTs in AR billboards exemplifies the effective merging of physical and digital experiences. Virtual advertising space sales and purchases in the form of NFTs have potential value in areas with high foot traffic.
Phygital NFTs Examples
Physical Versions of Digital Assets or Collectibles
Firstly, Physical versions of digital assets and collectibles are essentially NFTs that are directly linked to tangible items available for purchase. One of the first industries to see the implementation of Phygital NFTs is the fine art sector. Physical NFTs representing fine art can be traded like actual art pieces. Additionally, NFT artwork can be redeemed for physical artwork in the future. The success of Phygital NFT projects has enabled many artists to sell their artwork through NFTs, giving them wider exposure and protection against counterfeiting, fraud, or plagiarism. By eliminating intermediaries, artists can interact directly with buyers. Another key aspect of physical NFTs and collectibles is the generation of royalties with each NFT sale.
Metaverse Fashion & Merchandise
Finally, an additional key instance of Phygital NFTs can be seen in the area of metaverse fashion and products. Several renowned fashion brands, such as Prada, have embraced NFTs to provide a more innovative customer experience. For instance, Nike has introduced its new virtual sneaker series as NFTs. Moreover, some brands are experimenting with virtual fashion boutiques, offering clothing for use in the metaverse. For example, Cult&Rain is a brand that has created an NFT phygital by releasing a hoodie collection.
