19.1.2024
Do you have a product that exists in both the physical and digital worlds or could be expanded digitally? Welcome to the World of Phygitals
Phygitals exist as a physical product together with an associated digital asset. This means that they are not only tangible, but also have digital elements that provide additional information and can give their owners access to digital experiences. In the sense of the digital product passport, it could contain information about the raw materials used, the manufacturing process, the entire supply chain, repair instructions (including in augmented reality form) and recycling options. They can add unique moments to their products in the form of images, sounds, videos, and virtual experiences.
Why are phygitals so important? The answer lies in how they can transform the relationship between their brand and their customers.
Phygitals open a gateway to the possibilities of Web3, the new generation of the Internet based on decentralized technologies, AI and XR, which enables digital ownership. With the help of Phygitals, brands can engage their customers in their ecosystem and create a whole new dimension of customer engagement — whether through exclusive digital experiences, special discounts, invitations to exclusive events, personalized offers, or access to metaverses. Without your customer having to deal with the technology itself.
In 2021, the Principality of Liechtenstein has for the first time a series of crypto stamp published. Validation is carried out by scanning the SQR code on the stamp with the associated app. Although the QR Code is the same on all stamps in a series, each stamp can be individually identified. This gives the owner access to puzzles, sounds, animations and a worldwide ranking of the most successful and fastest puzzle solvers.
In 2023, Deutsche Post also launched its first series of crypto stamps with an associated unique NFT, but the user experience is much more complex and designed for pure collection and not for gamification.
Integral Reality Labs produces series of individual, physical 3D prints of licensed characters and spaceships from well-known video games and films, such as Assassin's Creed and Star Trek. These are connected to their digital twin via Meta Anchor™ and NFC and can be used in an associated app. Depending on the character, the owner has access to various augmented reality games that include the physical collectible. In doing so, the virtual figure's abilities are improved and the progress in the digital twin is saved.
Previous NFT collector Gmoney has 9dcc Founded the first crypto-native luxury brand and lifestyle platform. The name is made up of the last 4 characters of his public wallet ID, his account number for Etherium cryptocurrency. The collections are of very high-quality workmanship, very simple in design and strictly limited. The 3rd ITERSTION-03 collection will be presented at the 2024 NFT.paris conference. However, the recipe for success lies in the integrated and exposed secure NFC chip. This can be linked to a POAP (Proof of Attendancy Protocol) from the owner. Each time the chip is scanned, the scanner receives a POAP NFT from the wearer, i.e. a memento of the meeting. The platform keeps a ranking of the most scanned textiles and the leading owners receive bonuses. In addition, 9dcc hosts community events such as poker rounds on weekends and scavenger hunts with exclusive prizes as side events to prominent Web3 conferences.
Since 2024, 9dcc has been offering the production of T-shirts, hoodies and baseball caps on behalf, including licensing of platform use, including community affirmation as a service.
Implementing Phygitals requires the use of trustworthy technology to anchor the digital asset. Simple QR codes or standard NFC chips are not enough for this. It requires more robust and reliable, authentic methods. There are already a number of alternative technologies on the market for various application scenarios. When used, your product and brand are also protected against counterfeiting. Some of the products also provide other added value, such as their own ecosystems, the ability to contact customers directly, information about the eographic distribution of the products and information about or access to the secondary market.
The ERC-6956 Is a standard for asset-bound NFTs (ABNFT) that was developed specifically for use with physical objects. ABNFTs are non-fungible tokens (NFTs) that are tied to a specific physical object and, in fact, represent their inseparable digital equivalent — their digital soul, so to speak.
ABnFTs cannot be traded freely, but are transferred from the last owner to the current owner of the physical object upon validation. Not to be confused with soul bound NFTs, which cannot be transferred at all. Whoever has control over the physical object is in possession of the associated ABNFT. Ownership of the digital part thus becomes proof of ownership of the physical object.
Implementing ABnFTs offers numerous benefits, including the ability to connect the physical product to digital services, validation of authenticity and origin, and connection to an ecosystem of services and experiences in the digital world available to asset owners.
Phygitals are more than just a cool new technology. Rather, they represent a paradigmatic shift in the way we think about products, ownership, and customer experiences. Phygitals have the potential to enable companies to create deep and unique customer experiences by merging the boundaries between the digital and physical worlds.
PhygiCon has set itself the task of helping companies unlock the full potential of this exciting new technology. Contact us today to learn more about how Phygitals can revolutionize your business.
