Since non-fungible tokens (NFTs) went live for the first time, experts predicted that these could be beneficial for physical objects. And as time went on, NFTs spread their wings towards pretty much everywhere, and physical items were not an exception. Soon, real-world brands saw a big marketing opportunity in NFTs, and that is how these tokens ended up venturing as phygital NFTs. In this blog, we will talk about what phygital NFT marketplaces are and how brands can utilize them for marketing themselves in the Web3.0 world.
What are Phygital NFTs and Their Marketplaces?
Phygital, in language terms, is a combination of the words “Physical” and “Digital.” Phygital NFTs are digital tokens that back physical items. Normally, digital tokens here are digital versions of the physical object they support through a blockchain entry. These have become one of the most searched trends post the NFT boom, as brands are looking for new ways to reach people.
Phygital NFT marketplaces are platforms where people can trade phygital NFTs. The concept is still emerging for commoner’s NFT marketplaces, although a few exist that show glimpses of the future of phygital NFTs. On the other hand, many brands have already started their Web3.0 wing and have tasted some success within a short span of time.
Why Should Brands Consider Phygital NFTs as a Marketing Move?
Even in the era of digitalization or Web2, people wanted virtual systems to complement the physical world, although control was with centralized corporations. With Web3.0 promoting hardcore decentralization, it is essential to remember that the physical world still exists; hence, any technology should complement it to stay relevant. Even skeptics who did not understand the significance of NFTs during the NFT boom support phygital NFTs – For them, these provide something in the physical world. Launching phygital NFT studios can be a great option for brands looking to stay relevant to the Gen-Z, as cookies will cease to exist within a few years’ time.
Another problem that popular brands face is the duplication of their products by malicious actors. You can find replicas of any branded items in the market, and they are cheaper than their originals. These items provide users with bad experiences, which intend to tarnish the brands’ reputations. NFTs can help brands in this case, as original items will be registered on the blockchain. Adding utilities to NFTs can further strengthen a brand’s position in the market, as utilities have been the heartbeat of the current NFT community. Some brands have even gone creative and use redeemable phygital NFTs, which are a slightly different concept.
Business Model of a Phygital NFT Marketplace
One of the important aspects of phygital NFT marketplace development is its business model. The business model is an impressive one, thanks to the possibility of linking digital and physical utilities. In a phygital NFT marketplace, the initial workflow involves the usual process of account creation and crypto wallet setup. Then comes the stage where users can buy phygital NFT items. Here, the user gets an NFT and the associated physical product at the same time. While NFTs can be used for verifying ownership and utilities, physical items can be used for the intended purpose. A striking feature here is that users can sell their NFTs without the physical object, although under a few conditions.
How Can We Assist You in Phygital NFT Marketplace Development?
Therefore, we can say that launching phygital NFT studios can be the perfect option for brands to enter the Web3.0 space if they have not yet. Phygital NFT marketplace development helps a lot for brands by ensuring that people still believe in them and by giving more benefits for the price they pay. We have excelled in NFT marketplace development by following all the necessary steps with due diligence. Our experts also focus on being customer-centric, and hence you can ensure that your brand’s identity is well preserved in your new phygital NFT marketplace,