The second wind of NFTs
If you haven’t come across the term “phygital” yet, here’s a crash course…
It is a combination of the words “physical” and “digital” and relates to giving consumers 2-for-1 value: if one buys a physical item, they automatically have their digital representation in the metaverse in the form of an NFT.
The way phygitals work is quite simple: if a retailer has 1000 physical T-shirts to sell, they can also have 1000 NFTs of those T-shirts in the metaverse. A phygital product gives the physical item a digital “skin” that you can wear on your avatars in the metaverse.
Fygitals are the second wind of NFTs and could be the next crypto revolution as the physical goods increase in value, making consumers feel like they have more ‘bang for their buck’. The physical plus digital value proposition will give new legitimacy to blockchain technology and attract new audiences to NFT markets.
For example, you can buy one Balenciaga hoodie in the real world and then mint the digital version to wear on yours Klar plays me avatar. Or imagine the next Billie Eilish concert you are attending. The concert ticket unlocks a time-sensitive POAP (Proof Of Attendance Protocol) token that gives you 12 months of access to her 3D space in the metaverse and an exclusive drop for POAP holders only.
Imagine a water company that Evian create gamified trading incentives; anyone who returns and recycles the water bottle and scans the QR code begins to earn carbon footprints and reduce points that ultimately lead to receiving gifts and exclusive event invitations from the brand.
From a consumer perspective, this is a win-win, as they get both a physical and digital version of the item they have purchased, at no extra cost. In addition, they get a piece of the NFT and metaverse pie, where they can join a community of like-minded people.
Phygitals will also create a way to more safely and transparently trade assets and monetize them. This fundamentally changes how we treat goods in terms of their long-term value. Once redeemed, customers can use the NFT as a reward point, resell it or even use it as collateral to get a loan.
New brands can use phygitals to reward their early adopters, and more established brands can use it as a community engagement tool by providing certain benefits to those who have digital twins. We see that some major consumer brands such as Pepsi causing heads to turn around the phygitals.
Fygitaler extends the concept of ownership and agency for physical objects into the digital world. And I am convinced that they will form the cornerstone of AR and VR experiences in the metaverse.
Bio: Batis Samadian, founder and CEO of SPACE
The founder and CEO of SPACE, Batis Samadian, founded the company with the goal of building a fair and equal economy for creators and businesses. Previously, Batis was product manager at Zapp in the UK and co-founded Saffron.
Batis invested in a number of successful projects, such as Emmetros and Bali Juice. Batis has been in crypto since 2013, first mining with his college friends. Today, he brings his entrepreneurial and crypto knowledge to building the leading trading metaverse.
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About SPACE:
SPACE is a virtual trading world that enables the creators of tomorrow to build and dream together. SPACE is on its way to enable people to have incredible immersive commerce experiences and provide them with tools that improve not only the community, but also people’s productivity in life.
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