In order to understand what a Phygital NFT is, it is important to first understand what an NFT is. An NFT, or non-fungible token, is a unique type of digital asset that uses blockchain technology to certify its authenticity and ownership. Unlike cryptocurrencies, NFTs are not interchangeable, as each one is unique and has distinctive characteristics. The blockchain ensures that these assets cannot be copied or counterfeited, which gives them a guarantee of digital ownership.
NFTs have gained popularity in areas such as digital art, video games and entertainment. Recently, Phygital NFTs have emerged as a trend, merging the value of the tangible with the digital world. These NFTs allow users to own a physical object that is, in turn, linked to a digital asset. Below, we will explore how Phygital NFTs work and their most interesting applications.
What does “Phygital” mean?
The term “phygital” comes from the combination of “physical ” and “digital” and is used to describe experiences or products that combine elements of both worlds. In the context of NFTs, phygital refers to a physical asset that is connected to an NFT in the digital world. In other words, when purchasing a Phygital NFT, the buyer gets both a physical object and an NFT linked to it.
How do Phygital NFTs work?
When a Phygital NFT is created, a link is generated between the physical object and the NFT, which serves as a kind of “digital certificate” of authenticity. The physical object can be a work of art, a garment, a luxury item or any other type of material good. The NFT ensures that the ownership of that object is recorded on the blockchain, and only the owner of the NFT can claim the physical object or, in some cases, receive additional benefits.
The blockchain technology used in NFTs ensures that ownership and authenticity data are unalterable. Moreover, as a decentralised system, it does not rely on a central entity to validate ownership. This gives users greater confidence that their phygital object is unique and authentic.
Example of a Phygital NFT
The art world has begun to explore the phygital world, creating works that exist on both the physical and digital planes. For example, a painter may create a unique work on canvas and then issue an NFT linked to it. The owner of the NFT is then the owner of both the physical piece and the digital asset, which increases the value and exclusivity of the work.
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Benefits of Phygital NFTs
Phygital NFTs offer a number of benefits for creators, brands and buyers, and here are some of the prominent ones:
- Authenticity and verifiable ownership: The blockchain guarantees that both the physical object and the NFT are authentic, eliminating problems of counterfeiting and fraud.
- Exclusive experiences for shoppers: Phygital NFTs enable brands and creators to deliver unique and personalised experiences. For example, a designer can create a limited line of clothing with exclusive NFTs that unlock digital content such as augmented reality filters or access to events.
- Interaction between the physical and digital world: This technology allows users to interact with the physical object and enjoy digital benefits, creating a complete and enriched experience.
- Community and brand loyalty: Phygital NFTs create a sense of exclusivity and belonging among buyers, who can feel part of a special community.
Phygital Collections in TU Gallery
Within Gallery, Telefónica Innovación Digital’s NFT marketplace, there is a variety of NFT collections in art, illustration, literature, gaming, entertainment and social engagement. Of these collections there are several that fall into the Phygital category.
A clear example of this can be found in the collection “Famous Characters” collection by the painter Eduardo Roncero. This work takes a journey through the history of music, film and painting through enigmatic characters of art. The purchase of the NFT includes the original work on canvas along with the certificate of authenticity of both pieces. Thus, collectors can obtain both a digital work and a physical piece by the artist.
For board game lovers, we have the World Challenge Game collection, in which the purchase of the NFT gives you access to an exclusive tournament, discounts to buy the board game, special in-game badges and a private channel in their Discord community.
In the collection “Cuentos con sonrisa” (Stories with a smile) made by the Gomaespuma Foundation and Juan Luis Cano, the holder of the NFT would also get the physical work of the story. It is important to note that the proceeds will go entirely to the foundation that works with disadvantaged children and young people.
The “Inspiration” collection consists of five illustrations inspired by phrases of the rapper and writer El Chojin in which the physical illustrated work is purchased.
