Phygital is a term that typically means the combination of the two words: physical and digital. Phygital NFTs are non-fungible tokens (NFTs) that connect to tangible objects. They can connect real-world items with their digital counterparts to create a seamless connection between the two.
Phygital NFT works by connecting a physical object to a unique digital token on a blockchain
Why they are gaining attention in the NFT and investment space. This process will verify the authenticity and ownership followed by allowing the users to interact with both the products included in this process.
Examples of Popular Phygital NFT Projects
Some practical examples of Phygital NFTs are given below:
1. Fashion
A number of popular fashion brands have entered the Non-Fungible Token (NFT) world by highlighting revised and improved customer experiences. For example a popular fashion brand employs Phygital NFT allows their users to airdrops and discounted pre-sales. Other than this they will get exclusive privileges that include invites and VIP access to their next events.
2. Sneakers
Currently, the famous brand Nike has having virtual sneaker collection. Other brands are also trying to enter the NFT space and launch virtual fashion houses that can offer clothing for metaverse users.
3. Artwork
This has been Phygital NFTs’ first application area. The use of the NFT artwork is to redeem physical art in the future. For example, an NFT artist, FVCKRENDER has collaborated with Avan Art and released two Phygital sculptures.
Risks and Challenges of Phygital NFTs
Let’s explore the risks and challenges of Phygital NFT projects through a table.
| ✅Benefits | ❌Downsides |
| Easily tradable and transferable Allows secure and efficient transfer of ownershipProvides a clear and valid record of ownership and provenance which helps in authenticating and valuing physical items | The technology is relatively new and untested High-profile cases of NFTs losing value or being hackedPaved the way for the discussion of debate and controversy due to the use of NFTs |
Future Trends in Phygital NFTs
With the introduction of Phygital NFTs, it became possible to bridge the gap between physical and digital worlds. The interaction between both these worlds and Phygital NFTs grows hand in hand. Phygital NFTs didn’t gain much popularity or embracement, however, the scenario has changed rapidly. The change was basically due to the increased scarcity and value of NFTs. This resulted in the introduction of new concepts of Phygital NFTs.
There is only a small difference between NFTs and Phygital NFTs. Phygital NFTs are a type of NFT that represent digital proof of ownership of a physical asset. Whereas the NFTs are a type of asset in the digital world that the owner can transact like any other crypto.
Phygital NFTs can be the future trend hence the owner can flex digital assets physically on the blockchain network. If these NFTs are legitimately incorporated into the business this can help the business to take to the next level.
Conclusion
Phygital NFTs are a game-changing development in the world of digital ownership and trade that combines the physical world with digital assets. Like any other, Phygital NFTs also come with potential risks and challenges. NFT investing exhibits high risk and the profitability of the investment is not assured. This initiative can create new revenue streams, allow for creative expression, and enhance experiences. Possibly Phygital NFTs rule the future. Before dealing with money conduct thorough research and the investors should be cautious.
