What are phygital NFTs, and how do they work?
TL;DR Phygital NFTs are digital collectibles that link physical goods and experiences to the virtual world, allowing businesses to engage with their customers through NFTs. These communities around phygital NFTs are blockchain agnostic and focus on the brand that they feel an affinity to.
Phygital NFTs go beyond just the virtual use cases of NFTs and connect real-world products to the virtual world while relying on Web3 design principles.
The world is moving toward an experience economy focused on communities. As more businesses enter markets to serve their customers, one of the key distinguishing factors that could create a meaningful impact from a customer’s point of view is a community experience.
Phygital nonfungible tokens (NFTs), an amalgamation of physical and digital nonfungible tokens, enable community experiences as brick-and-mortar businesses look to engage with their customers through NFTs.
Phygital NFTs allow buying and selling real-world physical goods and experiences through digital collectibles or NFTs. As collectors of phygital NFTs grow and thrive, they start identifying themselves as being part of a tribe, thereby increasing customer retention for the business.
Phygital NFTs do not necessarily rely on native Web3 communities. For instance, NFT communities on Ethereum and Solana often rely on native users of these blockchains that the NFT is created on. However, communities around phygital NFTs can be blockchain agnostic and focus on the brand that they feel an affinity to.