Let’s Get ‘Phygital’: Combining the Physical and Digital in Web3

The rapid rise of non-fungible tokens (NFT) and the metaverse in the past year has given rise to new types of projects and new use cases. One emerging use case in this space is the utility NFT, a type of NFT designed to provide holders with additional value beyond the actual digital asset.

Utility NFTs provide access and items for individuals looking to engage with brands and participate in the project’s culture. For crypto-native and Web2 brands in both fashion and entertainment, Web3 presents an opportunity to bring both digital and real-world items and experiences to its audience. This new popular pairing of the physical and digital world has led to it getting its own word: phygital.

The concept, simply, is that the project is not just in the digital space or the physical world but bridges both worlds, connecting them together in some way.

The concept of creating phygital products and experiences has led to some of the top consumer brands in the world to contribute to Web3 with their take on phygital ideas. Nike, Dolce & Gabbana, Tiffany & Co. and many others have created unique phygital offerings and experiences.

Depending on the company’s particular offering, unique phygital pairings brought about new products that felt less like objects and more like experiences.

Take Nike’s early phygital experience as an example. In late 2019, Nike revealed that it had obtained a patent for blockchain-based sneakers. As it continued to move toward phygital experiences, Nike went on to acquire NFT sneaker studio RTFKT Studios. This acquisition led to the launch of Nike’s metaverse sneaker line RTFKT x Nike Dunk Genesis CryptoKicks. By purchasing one of these NFTs, you are able to wear your sneakers in the metaverse and claim the right to owning your own pair in the real world to match.

Fashion has certainly taken center stage in the rise of phygital activations, pairing the traditional in-person runway show with new, digitally created looks or staging Web3 fashion week shows in the metaverse. The pairing of real-world items with in-game or in-metaverse items for your avatars makes for a straightforward example of how these events work. Yet, the phygital world is not limited to just fashion and sneakers.

Collectible projects have also begun to develop in the phygital space. In September 2022, for example, Funko Teams and Warner Brothers announced a partnership for DC comic-based NFTs on WAX. Through the partnership, DC fans were given the opportunity to participate in an NFT drop for the digital version of DC’s “The Brave and the Bold” comic.

To better bridge the digital experience with the physical, the brands also announced the release of a physical version of the comic book available through Walmart. By either purchasing the digital or physical copy, you would gain access to the other with your purchase.

The recent trend toward providing real-world utility in the phygital world has captured the imagination of creators and brands alike. By marrying the physical and digital worlds, phygital drops are moving beyond just purchasing an item for display to creating something more, by bringing pieces of the real and the virtual world together to create unique experiences.

Bookmark (0)
ClosePlease loginn

Related Posts

What Are Dynamic NFTs? Understanding the Evolving NFT

Dynamic NFTs are digital tokens that use smart contracts to change over time.

Bookmark (0)
ClosePlease loginn

What Are MoonCats? The Legacy NFT Project Revived by Its Community

Created in 2017, the collection of generative pixel art-style cats was rediscovered in 2021 and quickly gained popularity.

Bookmark (0)
ClosePlease loginn

What Are the Top NFT Blockchains?

The recent addition of Bitcoin NFTs has added a new player in the non-fungible token space, but Bitcoin Ordinals have a long way to go before they reach the heights of NFTs on Ethereum or other top blockchains like Solana and Polygon.

Bookmark (0)
ClosePlease loginn

Bitcoin NFTs: What Are Ordinal NFTs and How Do You Mint One?

NFTs on Bitcoin are different from the Ethereum NFTs most people are familiar with. Here’s what you need to know.

Bookmark (0)
ClosePlease loginn

What’s the Story Behind Bored Ape Yacht Club Creator Yuga Labs?

The organization has become a household name in the crypto industry following the immense success of its BAYC NFT collection.

Bookmark (0)
ClosePlease loginn

What Are NFTs and How Do They Work?

NFTs are crypto assets that grant gamers and collectors ownership over their digital items.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *