(Physical + Digital) NFT = Phygital NFT 👀 🔥
(Physical + Digital) NFT = Phygital NFT 👀 🔥
When the digital world meets the real world. The answer for brands to sail through, with feet in two boats.
Hello, y'all. This is The Rabbit Hole, and we want world tour stamps NFT collection that comes along with tickets for the trip? We can get by with a little help from our friends🤞
The NFTs backed by redeemable real-world physical assets. Phygital. The term was coined by an Australian agency called Momentum back in 2013. Not the brightest term ever coined. Still, live with it.
🎨 What are they?
They bridge the gap - you can own a piece of the virtual world while still having a tangible, real-world product to show off to your friends. You can buy and sell real-world physical goods and experiences.
So, you're at a carnival and you want to play a game. You pay for your game by scanning a QR code on your phone (digital), but the prize you win is a stuffed animal (physical). That's a phygital experience!
Now, let's talk about phygital NFTs - it's like buying an NFT ticket to a concert, but instead of just getting access to the concert online / offline or both, you also get a limited edition print of concert t-shirt mailed to you as a souvenir.
This means that the brick-and-mortar businesses can use them to engage with customers in new ways. Unlike other NFTs that rely on specific blockchain platforms, phygital NFTs can be blockchain agnostic and focus on the brand that people feel an affinity to. When people collect phygital NFTs, they start to identify themselves as part of a community. This community can increase customer retention for the business by creating a loyal customer base.
Brands are jumping in. Hello Web3.
Why not sponsor, eh?
👾 How do they work?
Phygital NFTs have three key components, identical to conventional NFTs.
Issuers: The creators who issue NFTs. The NFT is linked to both the digital and physical asset. It's proof of ownership and is transferred to the buyer.
Holders: The buyers who can sell the NFT bought from the creators, in secondary sales. Transfer ownership of both digital and physical asset.
Platforms: Third party that verifies the ownership of the NFT, and helps distribution - sale of NFTs for both primary and secondary sales.
It helps combat counterfeit products, so you know you're getting the real deal.
Authenticity: You can trace the ownership history all the way back to the original issuer - the creator.
Trust: Build trust by verifying the ownership on the platforms and secure blockchain based transactions.
👩🏻🎨 What are brands using it for?
Build trust. Proof of authenticity. Proof of ownership. Ease of transfer. Prevent fraud. Event tickets. Limited editions. Royalties on secondary sales. Reach a new audience.
The notable brand projects from across the industry.
Food and Beverage:
Starbucks Odyssey, the loyalty rewards programme.
Blockbar's NFTs with corresponding physical bottles.
The Whisky Barrel's single barrel scotch whisky paired with its own NFT.
Fashion:
Danit Peleg's Nouns DAO 3D-printed fashion collection.
Francine Ballard METAgolden for fine jewellery.
Diesel's wearable NFT collection D: Verse.
Artwork:
FVCKRENDER's sculptures released with Avant Arte.
Damien Hirst's experiment The Currency.
Tom Sachs' Rocket Factory, a trans-dimensional manufacturing plant.
🤔 Are they the future?
Classic PFP NFT, the undisputed king of the NFT world vs. Upstart phygital NFT ready to take the throne with its unique blend of digital and physical features. Which one is better?
Depends on what you're trying to accomplish. Looking for a straightforward way to prove ownership of a digital asset? Get a regular NFT.
Want to add a touch of real-world authenticity to your digital masterpiece? Get a phygital NFT.
That simple.
In the end, it's all about finding the right tool for the job. But one thing's for sure - with phygital NFTs, we're entering a whole new era of digital ownership and creativity.
TTD Week That Was 📆
Crackdown. Liquidations. Meltdown. What a week.
Saturday: That's how the cookie crumbles 🍪 ⚒️
Friday: 24 hours. $70 Billion. Gone 💣🚷
Thursday: Turmoil. Fraud. Run Risk 🪠
Wednesday: W for Web3. W for Women 💪 🫵🏼
Tuesday: Is crypto moving outside US? 🇺🇸 ✈️
Monday: UK crypto crackdown 🧑🚒 🚒
TTD Week In Funding 💰
Wildxyz $7 Million. Gwyneth Paltrow backs the digital art platform to expand its residency program and community for NFT art.
Matchday $21 Million. Lionel Messi backs Web3 soccer game studio to build Web3 games along with FIFA.
EtherMail $4 Million. Tim Draper leads the investment for the encrypted wallet-to-wallet communication platform.
Kresus $25 Million. Trevor Traina has raised funds to build web3 super app for the everyday consumer that is part exchange, part wallet and part guide.
OpenChat $5.5 Million. Decentralised on-chain messaging platform has raised the funds in a community-driven crowdfunding sale.
Gyroscope $4.5 Million. Building GYD stablecoin to solve the issues facing stablecoins today, including risk, adoption and sustainability.
Republik $3.4 Million. The platform helps creators connect with their audience and utilise smart contracts to handle monetisation processes.
Toku $20 Million. Blockchain Capital backs the token-based payroll, employment and tax compliance project (previously WorkDAO).
Tensor $3 Million. Placeholder VC led the funding for Solana-based NFT marketplace is for pro traders, and brands itself as “the Blur of Solana”.
Scroll $50 Million. Ethereum Layer 2 network that uses zk-rollups technology has raised funds to launch its mainnet and expand its ecosystem.
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literally all product ownership could be phygital nfts. especially high ticket products which have resale value ...