What are Phygitals?
Phygitals are a combination of the words “physical” and “digital” and relates to providing consumers 2-for-1 value: if one buys a physical item, they automatically have its digital representation in the metaverse in the form of an NFT.
The way phygitals work is pretty straightforward: if a retailer has 1,000 physical T-shirts to sell, they can also have 1,000 NFTs of those T-shirts in the metaverse.
Benefits of Phygitals
Phygitals provide a physical plus digital value proposition that brings new legitimacy to blockchain technology and attract new audiences to NFT markets. From a consumer perspective, this is a win-win, as they’re getting both a physical and digital version of the item they purchased, with no additional cost. Plus, they’re getting a slice of the NFT and metaverse pie, where they can join a community of like-minded people.
Phygitals also create a way to more safely and transparently trade assets and make money on them.
Phygitals, the integration of physical elements in the digital world, is the next step in the evolution of NFTs. It offers a new way to engage with customers, rewards early adopters, and creates a new way to trade assets.
With big consumer brands like Pepsi exploring this concept, it’s clear that phygitals have the potential to change the way we value physical goods in the future.
The concept of ownership and agency of physical objects is extended into the digital world, and it’s likely that phygitals will form the cornerstone of AR and VR experiences in the metaverse.