A phygital NFT marketplace operates on a familiar model, but with a distinctive twist. Unlike traditional NFT platforms, users in a phygital marketplace need to specify their delivery address or preferred collection point for their physical items. While the acquisition of NFTs and physical goods involves an authentication process, phygital NFTs offer broader possibilities.
These assets aim to enhance brand loyalty by serving as exclusive access passes to special events or airdrops. The process begins when users set up their accounts and connect their cryptocurrency wallets. They can then browse the platform to acquire phygital assets either through auctions or direct purchases. Once acquired, users receive the physical item along with access to the associated NFT, or vice versa. In some scenarios, users can acquire the NFT and redeem it for the physical product. This dual ownership allows them to enjoy both the digital and physical assets, and in certain cases, trade the NFTs independently without relinquishing the physical item.