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Leading consumer brands are now venturing into the metaverse to enhance the shopping experience and offer convenience like never before. By establishing a virtual presence, you can enjoy a seamless shopping experience that mirrors the real world.

To bring this to action, companies are leveraging NFTs, specifically Phygital NFTs, to create an immersive and tangible online environment that truly captures the essence of the physical shopping

What Is a Phygital NFT?

Ok, to understand what exactly Phygital NFT means, let’s break it down word by word. So you get a better understanding.

Firstly, Phygital itself indicates that it is a combination of Physical and Digital. Think about shopping online on Amazon.com. You see the product on Amazon, which is digital, and buy it and receive the product physically, or in games like Pokemon Go, where you could search for Pokemon characters at different real locations through augmented reality.

NFTs is a popular word in the crypto world which stands for Non-Fungible-Token, a digital item containing the identifying information in the smart contract.

So the Phygital NFTs are a combination of both Phygital and Digital in the form of NFT.

Phygital NFTs enable blockchain developers to combine the digital and physical by expanding the functionality of NFTs and linking them with real-world objects and experiences.

How to Get a Phygital NFT?

There are multiple ways to get a Phygital NFT.

For example, a project creates a Phygital experience by asking users to buy NFT and then nudging them to burn it for access to physical goods or experiences.

Or even providing access to alternative NFT upon burning.

Another strategy is giving NFT only when a customer purchases a product or service.

Phygital NFT Use Cases.

Gaming.

As I gave an example of the Pokemon Go game earlier, Phygital NFTs can be used to represent the different characters in a game.

Now in the era of AR and VR, giving a more personalized experience and honoring players for their accomplishments. For instance, a game might let you buy and sell distinctive phygital NFTs that depict the characters, goods, or weapons they use in-game.

Fashion and Apparel.

Have you heard of the Metaverse, a VR technology that allows you to experience the real world?

The Metevers and VR were gradually adopted by the public. Even the tech giant like Facebook renamed to Meta, focusing on this technology.

As the Metaverse becomes popular, giving you real-world experience in the small device, a vast market is open for monetization.

In fact, many brands like Nike have already started to explore the area where they start the store, and you can shop the product with a real-world-like experience using VR.

To make this a reality, Phygital NFTs play a handy role, where brands give you the NFT when you buy from the Metaverse and then use it to buy a product in the real world.

Art Work.

With the Phygital NFTs, an artist can sell the art conveniently.

An artist can convert the art into a Phygital NFT and sell it to the buyer with the option to have the physical art by burning the NFT or have a Phygital NFT instead of the physical art.

Music.

NFTs are already gaining popularity in the music industry. Phygital NFTs can elevate that giving the new opportunity to creators and fans.

By linking physical vinyl records or CDs with digital tokens, Phygital NFTs can provide a unique ownership experience for music fans. This allows collectors to display their ownership on a digital platform or in a virtual reality environment, creating a new level of interaction and engagement with their favorite artists and albums.

Food and Beverages.

Phygital NFTs can be put to good use in Food and Beverages, especially special drinks.

Many have a hobby of collecting or drinking heritage drinks. So to prove the authenticity of the drink, the non-fungible token provides proof that it is an original bottle and not a fake copy. When collectors buy these tokens, they get a QR code on the bottle, which is connected to their token.

Real Estate.

It is hard to maintain the land records for the person and the government, even though records are digitized.

Phygital NFTs solve the problem by creating a Phygital NFT when land is bought, proving the owner’s authenticity so that the government bodies can easily identify the ownership, even the mismatch or loss of records.

Phygital NFTs can also be used to represent fractional ownership of the real estate, allowing more people to invest in properties they may not have been able to afford otherwise.

Luxury Items.

Luxury Items, especially diamonds, and jewelry, can use the Phygital NFTs to represent authenticity. Even though there are many parameters to prove authenticity, digital tokens that represent physical jewelry pieces provide proof of authenticity and help prevent fraud when buying high-end jewelry.

Advantages and Disadvantages of Phygital NFT.

Advantages.

Phygital NFTs can do wonders for future technologies like AR and VR by bridging the gap between digital and physical experience.

Furthermore, Phygital NFTs ensure the authenticity of the asset and allow better physical interaction between the asset and the owner.

Not only ensuring authenticity, with Phygital NFT, one can monetize the physical asset in a better way and make more profit.

Disadvantages.

A big disadvantage of Phygital NFT is it is dependent upon the physical asset they represent. If the physical asset is lost, broken, or stolen, the NFT loses its value.

Another disadvantage is accessibility because to become more popular, widespread adoption in the general public has to occur. But the Blockchain, AR, VR, and Metevarce, are still a mystery to a non-technical person.

There are no complex laws and legal regulations to work with Phygital NFTs. So to mitigate this risk, buyers and sellers can work with legal and regulatory experts to ensure compliance.

Phygital NFT Real World Integrations.

As I previously mentioned, games like Pokemon Go and brands like Nike are exploring the NFT world. Apart from them, there are a lot of brands and artists that have already started to use Phygital NFTs.

The designer Francine Ballard of Metagolden sold the phygital ring in Sotheby’s NY “Art as Jewelry as Art” sale. The buyer of this gold-and-emerald ring owns it in both the physical world and the metaverse.

Italian fashion brand Diesel dropped their phygital NFT wearable in a collection titled D: Verse. The NFTs allow holders access to the Diesel NFT community and give the VIP access additionally, so holders have limited edition garments and metaverse-ready wearables.

Another iconic French fashion company Givenchy collaborated with the streetwear brand (b).STORY created a physical capsule collection with accompanying limited edition NFTs that includes t-shirts, hoodies, jeans, varsity jackets, statement bags, and footwear.

Scotland’s revered online whisky platform, The Whisky Barrel, launched the single-barrel scotch whisky paired with its own Digital Provenance Certificate (NFT). In a barrel, each of the bottles features a QR code tied to its corresponding Digital Provenance Certificate. This token provides digital proof of ownership and the provenance of each bottle.

NFT artist FVCKRENDER released two phygital sculptures by teaming up with the creative marketplace Avant Arte. These sculptures FEEL// and TOUCHED// – are physical artworks with accompanying NFTs.

Another British creative, Damien Hirst, put the phygital to the test by creating NFTs of his famous ‘spot paintings’, stored in a secure vault. To begin with, buyers received the NFT version of their purchase. Then, they had to decide which they valued more – the NFT or the physical. Whichever the buyer chose to keep, the other was burned. This experiment – known as ‘The Currency’ – lasted 365 days. Surprisingly, of the 10 thousand NFTs, 4,851, almost half of the holders decided to keep their NFTs. 5,149 NFT holders traded their Damien Hirst NFT for a piece of physical Damien Hirst artwork.

A popular NFT project Azuki launched their limited-edition 24K Golden Skateboard NFTs. Holders can burn the NFTs to redeem a real-life, gold-plated skateboard. The sale is linked to the debut of what Azuki is calling its “physically backed tokens,” or PBTs. Chiru Labs, the creative collective behind the project, said the skateboard weighs 45 pounds and is not recommended for riding.

Conclusion.

Phygital NFTs will make a significant change in our lives as we increasingly use modern technology in our daily routines, where the concept of phygital is becoming more common.

Phygital NFTs have the potential to bridge the gap between physical and digital.

Have you used any Phygital NFT? Let us know in the comment.