The NFT hype has been sweeping the world since its inception in 2017. Non-Fungible Tokens or NFTs have revolutionized the way we collect physical items and digital assets, giving rise to a whole new concept of phygital collecting. NFTs are unique, digital tokens that can represent any asset, from artwork to music to collectibles. They provide collectors with an unprecedented level of ownership and control over their collections, offering several advantages over traditional collecting methods.
What are Phygital NFTs?
The term phygital is often used to describe products or services that combine physical and digital technologies. It generally refers to products that blend retail experiences with online services. The word is a combination of physical and digital technologies, such as physical products with digital sales experiences or virtual reality games that incorporate real-world objects.
Phygital NFTs, also known as physical digital non-fungible tokens, are a type of cryptocurrency, token, or NFT that allows for the ownership and trade of unique physical items. These items could be anything from a collectible figurine to a limited edition work of art, and the NFT acts as a digital certificate of ownership for the item.
The rapid growth in the use of the non-fungible currency (NFT) and the metaverse over the last year has created new kinds of projects and new applications. Phygital NFTs is one of the most recent uses in this area that is referred to as which is a kind of NFT that is designed to give holders more value than what is actually a digital asset.
Phygital NFTs allow access to products for those looking to connect with brands and be part of the community’s spirit. For Web2 and crypto-native brands that are in entertainment and fashion, Web3 presents the opportunity to offer both digital as well as real-world products and experiences to the people who use it. The new and popular combination of both the physical and digital worlds has resulted in the creation of this new term.
It’s like building a bridge that connects two islands. The bridge is made up of both physical materials and digital components, but its purpose is to unite the two islands and create a connection between them.
The idea of creating phygital items and experiences has prompted several of the top brands of the consumer market across the globe contributing to Web3 by presenting their own perspectives on phygital ideas. Nike, Dolce & Gabbana, Tiffany & Co. and many more have developed unique phygital items and experiences.
Based on the specific company’s offerings, unique phygital combinations resulted in new products that looked less like objects, and much more like experience.
Examples of Phygital NFTs
Consider Nike’s first phygital experience as an example. In late 2019 Nike disclosed it had acquired the patent that covered blockchain-based sneakers. In the process of moving towards phygital experiences Nike continued to purchase the NFT sneakers studio RTFKT Studios. The acquisition resulted in the introduction of Nike’s metaverse sneakers RTFKT and Nike Dunk Genesis CryptoKicks. When you purchase any of the NFTs they allow you to wear your shoes in the metaverse and have the option of own an actual pair.
Fashion has definitely been the focus of attention with the advent of phygital events, combining the classic in-person runway show with digitally-created styles or putting on Web3 fashion week events that take place in the Metaverse. The pairing of real-world products with items from the game or within the metaverse to your avatars provides an obvious demonstration the way these shows function. However, the physical world isn’t limited to sneakers and fashion.
Collectible projects are also beginning to grow in the physical space. In September 2022, for instance, Funko Teams and Warner Brothers announced an alliance to create DC comic-based NFTs to be released on WAX. Through this collaboration, DC fans were given the chance to be part of an NFT drop to The Brave and the Bold digital edition of the DC “The Brave and the Bold” comic.
To make it easier to bridge the digital experience and the physical brand experience, the companies also announced the launch of an physical copy of the book that is available at Walmart. When you buy either the digital or physical version, you’ll be able to access the other as part of your purchase.
In conclusion,the new technology of NFTs has created a unique and captivating form of digital collecting that is unparalleled to traditional art. Not only do they allow people to own a piece of art in an entirely new way, but they can also be used as items of financial value. Additionally, the increased accessibility of these collectibles makes them highly appealing to both old and new collectors alike. As the popularity of NFTs grows, so too will the variety and scope of the content available for purchase.