You may have come across the portmanteau term phygital, which describes a crossover and blending of physical and digital products and experiences. This term is particularly relevant to crypto, NFTs and web3, and, if crypto/web3 adoption gathers pace in the coming years, phygital packages may become commonplace.
There have been several recent crypto examples of the digital and the physical coming together, in various ways. Some of these fit into the phygital box, while others relate more generally to crypto being used in real-world cases, but all demonstrate that digital ledgers are not abstract virtual notions distinct from the real world.
Roofstock and USDC Homes
This month, a house sale was completed through the transfer of an NFT on the Roofstock onChain platform, which facilitates real estate trades through a specialized NFT marketplace. What’s more, the purchase was funded using a crypto lending service called USDC Homes, which offers crypto-collateralized financing options.
The buyer of the home, in South Carolina, United States, commented in particular on the ease of the process, in comparison with the time-consuming complications involved when buying and selling real estate the traditional way.
This observation contradicts an often cited criticism of crypto, which is that it’s difficult to onboard new users and go mainstream because of the amount of friction involved when getting started. This usually refers to the process of converting fiat to crypto, setting up wallets and negotiating the multitude of blockchains.
However, it’s inaccurate to assume that traditional transaction methods are always smooth and without complication, and in this case, a real estate purchase, it appears that the cryptocurrency alternative was the easier option.
It may be the case that, for certain types of purchases, at least, the narrative that crypto is complex and difficult to use starts to fall away, as it is demonstrated that crypto can sometimes provide a more straightforward means of trading and financing.
Azuki Physical Backed Token
One of the top tier NFT collections, slotting in just behind CryptoPunks and Bored Ape Yacht Club, is Azuki. Launched at the beginning of 2022, it is anime-themed and has become an established part of the NFT landscape, with its 10,000…
