The integration of chip technology and o-chain programmability endows any physical object with wallet-like capabilities, such as token-gated access, signing, and asset ownership. This unlocks novel consumer experiences that were previously unattainable.
The next generation of phygitals is promising because they:
The next generation of phygitals is promising because they:
Facilitate onchain interactions in physical environments Embedding scannable hardware enables consumers to verifiably prove their proximity to an object or presence in a physical space. This proof can unlock location-sensitive utilities like live mints or serve as a participation record that qualifies the holder for future rewards. |
Empower consumer products with agency and reputation Chips with signature-generation capabilities allow any physical good to build its own onchain history and accrue value as its owners interact with brands and communities in real life (IRL). Because an item’s onchain record is independent of its owner, the item can be sold with its history intact and priced accordingly. |
Create a novel distribution channel for issuers Brands, communities, and creators can provide ongoing, dynamic utility to their products and spaces. IRL interactions become a metric to distribute differentiated rewards to the most engaged members, incentivizing them to engage more with the community. |
PHYGITALS OUTSIDE AND WITHIN WEB 3.0
The prevailing perception of Phygital goods involves IRL fashion items with a virtual NFT counterpart wearable in virtual worlds. However, this is just one application and merely scratches the surface of the design possibilities that have emerged.
A more apt analogy might be a physical credit card and the digital financial identity, purchasing power, and access rights it grants. The credit card enables the holder to make purchases in the physical world, while the bank maintains a digital record of card usage and associated perks. The card issuer secures partnerships with vendors to provide ongoing utility to cardholders, such as airport lounge access and hotel discounts.
The digital documentation does not necessarily serve as a direct reflection of the physical card, but it is integral to its operation, as third parties can access and modify its records through real-world interactions.
Some examples of phygital goods with convenient payment methods where the digital record with access rights and spendable balance is inherently part of its utility are:
A more apt analogy might be a physical credit card and the digital financial identity, purchasing power, and access rights it grants. The credit card enables the holder to make purchases in the physical world, while the bank maintains a digital record of card usage and associated perks. The card issuer secures partnerships with vendors to provide ongoing utility to cardholders, such as airport lounge access and hotel discounts.
The digital documentation does not necessarily serve as a direct reflection of the physical card, but it is integral to its operation, as third parties can access and modify its records through real-world interactions.
Some examples of phygital goods with convenient payment methods where the digital record with access rights and spendable balance is inherently part of its utility are:
Smart Card These are physical cards (like credit or debit cards) that are linked to a digital wallet. The card can be used for contactless payments, while the digital record keeps track of the balance, transaction history, and access rights. The digital wallet can be recharged online, and the balance is updated in real-time on the physical card. |
Wearable Devices Devices like smartwatches or fitness bands that allow users to make contactless payments. The wearable device is linked to a digital account that holds the user’s payment information, access rights, and spendable balance. When a payment is made using the wearable device, the transaction is recorded in the digital account, and the balance is updated accordingly. |
Event Wristbands These are wristbands given to attendees at events like music festivals or conferences. The wristband contains a chip that is linked to a digital record with the attendee’s access rights (e.g., access to VIP areas) and a spendable balance that can be used for purchasing food, drinks, or merchandise at the event. The balance and access rights can be managed and updated through a mobile app. |
Transportation Cards These are cards used for accessing public transportation services like buses, trains, or subways. The card contains a chip that is linked to a digital record with the user’s access rights (e.g., monthly pass) and a spendable balance for pay-as-you-go services. The balance can be recharged online or at physical kiosks, and the digital record is updated accordingly. |