[Education] - What are Phygitals and How Do They Relate to NFTs?
NFTs have exponentially grown in popularity over the last couple of years, cementing a place within the crypto and blockchain space. NFTs typically represent unique digital goods that can be purchased using crypto. The most common use case for these tokens is to represent ownership of digital assets.
However, NFTs have expanded so much that they can even represent physical assets. This is where the term Phygital originates. Phygitals act as a digital representation of ownership over a real-world asset–hence the name.
A Phygital is any product, service or experience that facilitates the merge of digital technology with a physical element. These innovative tokens can act as a gap between physical and digital spaces.
NFTs provide ownership of digital assets represented by a token on a blockchain. As many know, NFT’s value can fluctuate gradually based on supply and demand, which is one of the biggest reasons behind their popularity. Many are now wondering if Phygitals act similarly.
Here is a quick overview of Phygitals to give you a better understanding of this exciting new trend.
What is a Phygital NFT?
Phygital NFTs have grown immensely in popularity over the last few years, becoming one of the biggest trends within the NFT space.
Phygital NFTs have become one of the most significant Phygital experiences for users. These types of NFTs can cover a lot of user cases, with a broad range that helps collectors and investors find and create new ways of authenticating and representing ownership of unique items. Phygital NFT also allows investors and collectors to expand digital collectible treasuries or access new and innovative experiences.
Phygital NFTs can be defined as Phygital assets with two distinct parts:
One part refers to digital assets in the form of metadata, typically represented as a smart contract embedded in an NFT.
The other part is the physical asset, such as the tickets, property or 3D models.
Phygital also provides NFTs with a boost in credibility by expanding their representation and use cases into the real world.