Unlike traditional NFTs, phygital NFTs represent digital assets with physical components that can be used to purchase physical goods related to the asset or unlock exclusive experiences such as virtual concerts and artwork exhibitions.
Phygital NFTs are a new type of NFT that combines the characteristics of both physical and digital elements by linking a physical item, such as a collectible figurine or artwork, with a digital version of that same item.
The notion of phygital NFTs is not new – it has been around since at least 2011 when it was applied in marketing contexts for customer engagement tactics that combine physical and digital elements. Over the last decade, we have seen how companies like Apple have leveraged this concept to bridge the gap between physical stores and online shopping experiences such as Apple Pay.
With phygital NFTs, buyers can now use their tokenized holdings not only for direct purchasing power within the decentralized finance (DeFi) ecosystem but also for real-world experiences associated with them beyond just trading or viewing them inside a wallet app.
What are Phygital NFTs?
Phygital NFTs are a hybrid form of blockchain-based digital asset that combines physical and virtual elements. A phygital NFT might include a physical item such as an art print or coin along with its corresponding blockchain token. These unique tokens are created by linking a physical item, such as a collectible figurine or artwork, with a digital version of that same item, stored on the blockchain.
This allows owners to have both tangible proof and virtual ownership over their prized possessions. At the same time, it offers buyers additional levels of security since they can track the ownership history through the token’s records on the blockchain.
Phygital NFTs open up a wide range of possibilities for collectors, artists, and creators. For example, a physical painting could be sold with an accompanying NFT that serves as proof of ownership and authenticity. This NFT could also include information such as the artist’s signature, the painting’s history, and even a video of the artist creating the piece.
Use cases of Phygital NFTs
Phygital NFTs are a new and exciting technology that has many potential use cases. From art and virtual real estate to gaming and music, Phygital NFTs can be used to create unique and engaging experiences for users. Here are some of the use cases of Phygital NFTs:
- Collectible Art
- Virtual Real Estate
One of the most obvious use cases for Phygital NFTs is in the world of art. Artists can create unique, one-of-a-kind pieces that are linked to a digital asset. This allows for the art to be easily tracked and authenticated, and also allows for easy transfer of ownership. Additionally, buyers can have the physical piece of art to display in their home, while also owning the digital asset that can be traded or sold on the blockchain.
Virtual Real Estate
Another exciting use case for Phygital NFTs is in the world of virtual real estate. Virtual real estate platforms, such as Decentraland, allow users to purchase virtual land and build structures on it. With Phydigital NFTs, users could also purchase physical assets that are linked to their virtual land. For example, a user could purchase a physical sculpture that is linked to their virtual land, and the sculpture would appear in their virtual world.
Phygital NFTs can also be used in the gaming industry. Game developers can create physical items that are linked to in-game assets. For example, a game developer could create a physical sword that is linked to a powerful in-game weapon. Players could then purchase the physical sword and use it to unlock the powerful in-game weapon. This would create a unique and exciting way for players to interact with the game and would also allow for easy transfer of in-game assets.
Phygital NFTs can also be used in the music industry. Musicians could create unique physical items that are linked to digital assets, such as music tracks or concert tickets. For example, a musician could create a limited-edition vinyl record that is linked to a digital album. This would create a unique and exciting way for fans to interact with the music and would also allow for an easy transfer of ownership.
Benefits of Phygital NFTs
These unique assets offer a wide range of benefits for both creators and collectors, making them a valuable addition to the world of digital art and collectibles.
- Bringing digital art to life
- Added layer of authenticity and rarity
- New level of interactivity for collectors
- New level of ownership for collectors
Bringing digital art to life
One of the biggest benefits of phygital NFTs is the ability to bring digital art to life. With these assets, creators can now create physical copies of their digital art, giving collectors the ability to own a tangible piece of their favorite digital creations. This allows creators to expand their reach and generate more revenue, while also giving collectors a new way to connect with their favorite art and artists.
Added layer of authenticity and rarity
Another benefit of phygital NFTs is the added layer of authenticity and rarity. Each phygital NFT is unique and can be verified as the original, making it a truly one-of-a-kind piece. This added layer of rarity also makes them more valuable and desirable to collectors, increasing their potential for appreciation.
New level of interactivity for collectors
In addition, phygital NFTs also offer a new level of interactivity for collectors. These assets can be programmed to include interactive elements, such as animations or sound, making them a more immersive and engaging experience. This added interactivity also opens up new possibilities for creators, allowing them to create even more dynamic and engaging pieces of digital art.
New level of ownership for collectors
Phygital NFTs also offer a new level of ownership for collectors. With these assets, collectors can physically own a piece of their favorite digital art, making it a more personal and meaningful experience. This added level of ownership also increases the perceived value of the asset, making it more desirable to collectors.
How to buy Phygital NFTs
Purchasing Phygital NFTs, or non-fungible tokens can be a confusing process for those who are new to the world of cryptocurrency and digital art. However, with a little bit of knowledge and guidance, anyone can easily purchase and own these unique and valuable digital assets.
To purchase Phygital NFTs, you will first need to set up a digital wallet that supports NFTs. This can be done by downloading a digital wallet app such as MetaMask or Trust Wallet. Once you have your wallet set up, you will need to purchase some cryptocurrency, such as Ethereum, which is the most commonly used cryptocurrency for buying and selling NFTs.
Next, you will need to find a marketplace or platform that sells Phygital NFTs. Several popular platforms such as Rarible, SuperRare, and OpenSea allow you to purchase and sell NFTs. These NFT marketplaces typically have a wide variety of NFTs available, from digital art to collectibles and more. These platforms make it easy for users to browse through different collections and find unique items that fit their interests.
Once you have found a marketplace that you like, you can start browsing through the available NFTs. When you find an NFT that you want to purchase, you will need to place a bid or make an offer. The price of NFTs can vary greatly depending on the popularity and rarity of the piece, so it is important to research and understand the value of the NFT before making a purchase.
You can also buy phygital NFTs by participating in auctions held by specialized marketplaces such as Foundation or SuperRare where users can bid on rare pieces from top creators in fields like animation, gaming and music production using either ETH tokens or fiat currencies converted into cryptocurrency before bidding starts.
Once you’ve found something you like or after winning an auction, you can purchase it using cryptocurrency or fiat currency converted into Ethereum (ETH) tokens if needed for payment purposes. You will then receive your tokenized version of the phygital asset along with its corresponding physical item.
Phygital NFTs are a new and innovative form of blockchain-based digital assets that combine physical and virtual elements. These tokens allow for the creation of unique and one-of-a-kind experiences for users, from art and virtual real estate to gaming and music.
Phygital NFTs offer buyers additional levels of security, as they can track the ownership history through the token’s records on the blockchain. They also provide tangible proof of ownership and authenticity.
As the technology continues to evolve, the use cases and potential of Phygital NFTs are limitless, making it an exciting time for the NFT market and the future of digital ownership.