In recent years, the world has witnessed a significant shift in the way we consume, create, and exchange value. The rise of blockchain technology and its many use cases has paved the way for a new era of innovation and transformation. Among these developments, Non-Fungible Tokens (NFTs) have emerged as a revolutionary new way to represent ownership and authenticity in the digital realm. But now, a new concept is gaining traction — Phygital NFTs.
Phygital NFTs are a fusion of the physical and digital worlds. They represent digital assets that are paired with a physical counterpart, making them unique and tangible. Unlike traditional NFTs, which exist solely in the digital realm, Phygital NFTs allow collectors to own a physical object while also having proof of ownership in the form of a blockchain-based digital asset.
The concept of Phygital NFTs is still in its infancy, but it has already sparked a great deal of interest and excitement in various industries, including art, fashion, and gaming. The potential use cases for Phygital NFTs are endless, as they offer a way to combine the benefits of digital assets with the tangibility and uniqueness of physical objects.
One example of a Phygital NFT is the virtual sneaker. In recent years, sneaker culture has exploded, and the demand for rare and limited-edition sneakers has skyrocketed. Sneakerheads are willing to pay top dollar for these coveted items, but the problem is that there is often no way to prove their authenticity. Enter Phygital NFTs. By pairing a digital representation of the sneaker with a physical shoe, collectors can have both the tangible item and the proof of ownership on the blockchain. This opens up a whole new world of possibilities for sneaker collectors and retailers alike.
Another potential use case for Phygital NFTs is in the world of art. In recent years, digital art has gained mainstream acceptance, and NFTs have become a popular way for artists to monetize their work. However, some critics have argued that the sale of digital art goes against the very nature of art, which is rooted in physicality and uniqueness. Phygital NFTs offer a way to bridge this gap. By pairing a physical object with a digital representation, artists can retain the uniqueness and tangibility of their work while also leveraging the benefits of the blockchain.
The adoption of Phygital NFTs is still in its early stages, but there are already signs that it is gaining traction. In the art world, several high-profile artists have experimented with Phygital NFTs, including the street artist Banksy, who sold a physical sculpture paired with an NFT for over $12 million. In the fashion world, luxury brands like Gucci and Louis Vuitton have started to explore the potential of Phygital NFTs, with Gucci releasing a series of virtual sneakers in collaboration with the NFT marketplace Arianee.
One of the main benefits of Phygital NFTs is the potential to create new revenue streams for creators and retailers. By offering both a physical item and a digital asset, Phygital NFTs can tap into a broader market of collectors and enthusiasts who value both the tangibility and uniqueness of physical objects and the security and authenticity of blockchain-based digital assets. This could be especially beneficial for industries that have struggled in recent years, such as the art world, which has been hit hard by the pandemic.
MLIKI in this case aims to bridge and connect physical assets with digital assets or vice versa by creating a hybrid marketplace.
Let’s take an example, MLIKI established a partnership with clothing brand “A”. This brand can sell its physical goods on MLIKI SocialFi while the authenticity of the physical goods will be represented by NFTs that are created on the MLIKI NFT Marketplace.
When users purchase clothing from these brands, the physical item will be sent to the corresponding address in their MLIKI SocialFi account, while a proof-of-ownership and authenticity NFT will be sent to the linked wallet address in their MLIKI SocialFi account. These NFTs not only resolve ownership and authenticity issues but also become a digital fashion that can be used in the MLIKI Metaverse.
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About MLIKI
MLIKI is a hybrid marketplace that makes it possible to purchase physical goods and digital items like NFTs at the touch of a finger
