Digiphysical Good
Subtype
Last updated
Subtype
Last updated
No asset of this subtype is currently listed on the Regen Atlas.
Digiphysical (alternatively: “phygital”) goods typically refer to “goods that exist in physical form, and maintain a cryptographic link to its digital (on-chain) record via NFC [near-field communication] technology" (). In contrast to , the virtual half of a cryptonative digiphysical is bound one-to-one with an associated material asset; in effect, digiphysicals, when tightly coupled, are two simultaneous halves of a digital-physical whole.
Their key value proposition resides in their unique enjoinment of virtual and physical attributes, where when tightly coupled the NFT representing the physical asset cannot be transferred without the physical asset in question also being transferred. Looser couplings are also possible, such as , which enter the charitable donor into a lottery for an autographed FC Barcelona T-shirt—an opportunity to redeem the NFT against the good in question (but not the good itself). Other loose couplings include burn-and-redeem, redeem-and-replace, or access functionalities, where an NFT is destroyed, exchanged, or presented in return for a physical good.
Electric vehicles (EVs) fit the definition of digiphysical goods as they are inherently controlled by software, making them ideal candidates for on-chain integration in Web3. An NFT could represent ownership of an EV, where control over the vehicle is directly linked to the NFT; if the NFT changes hands, the vehicle's operational software could be instantly updated to reflect new ownership, ensuring that both the physical asset (the car) and its digital counterpart (the NFT) remain inseparable. This setup creates a tightly coupled digital-physical asset class, where the vehicle's functionality and ownership are governed by blockchain-based smart contracts.
