The Explanation of Physical NFTs: Advantages of Physical NFTs


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A physical NFTs are a non-fungible tokens tied to a physical asset. These can be resold or redeemed for the physical object.

Nowadays, it is nearly impossible to have a conversation that does not touch on NFTs. This is because non-fungible tokens have made their way into the mainstream world for good, either due to purchases in the millions of dollars or audacious cyber attacks.

But most of us might think that digital art, music, fashion, and the metaverse are the main places where this technology is used. Physical non-fungible tokens also carve a position for themselves inside the cryptocurrency industry.

This article will take a more in-depth look at what they represent and how they are now being used.

What Exactly is an NFT?

Before we get into the weeds, let’s define fungibility. A fungible item can be exchanged for another object of the same value.

Money is an excellent example of fungibility because a $10 bill can be traded for another account of the same value or even swapped for smaller bills that add up to $10.

Non-fungible Tokens (NFTs) are one-of-a-kind assets created on the Ethereum network (Understanding the Factors Impacting Ethereum Price). They enable creators to create unique tokens for assets such as images, songs, or any digital help.

These can then be sold as one-of-a-kind works of art, limited editions, or even small fractions of more extensive work.

However, they have previously been limited primarily to digital pieces. The original creator receives a fee, like royalty, for each sale made by buyers.

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A Non-Fungible Token has the following Core Characteristics

Uniqueness and Scarcity

NFTs are unique, and sellers can only create a limited number of non-fungible tokens, keeping them scarce and increasing their value.

That is the case with popular NFT collections such as CryptoPunks and the Bored Ape Yacht Club, which contain 10,000 unique NFTs.

Ownership Evidence

Buyers of NFTs receive some rights to the underlying digital item, including ownership, though this is only sometimes the case.

Blockchain technology records and makes publicly accessible the ownership of a digital asset, making it verifiable at all times. This also applies to physical NFTs.


Developers’ information embedded in blockchain tokens is nearly impossible to tamper with or compromise in any way. This contributes to NFTs being a transparent and trustworthy technology.


NFTs can be structured in various ways, with features such as royalties or life insurance detailed in NFT intelligent contracts. DeFi is also investigating practical applications.

What Exactly is a Physical NFT?

Non-fungible tokens are most commonly associated with the art world. Still, they have also been issued and sold as a digital representation of off-chain assets such as sports collectibles, antiques, and even consumer goods.

If the buyer wants a physical version of their property, NFTs can guarantee ownership over a real-life, physical item. In summary, a physical NFT is a non-fungible token tied to a physical asset. As famed digital artist Beeple explains, physical tokens connected to his artworks will typically include:

  • A high-resolution screen art display.
  • A signed certificate of authenticity.
  • Cleaning materials.
  • A hair sample (allegedly, don’t take our word for it).

Finally, physical NFTs can be sold like any other non-fungible token or redeemed for the physical item to which they are linked.

How do They Function?

Most physical NFTs have two parts: one talks about the physical asset and the other words about the digital support issued on a blockchain.

On the other hand, material assets are typically associated with a corresponding unique identifier, such as a QR code or an NFC tag (near-field communication).

Physical NFTs not only aid in the authentication of non-fungible tokens, but they are also valuable for the supply chain management.

Moreover, allowance for physical NFTs becomes easier with blockchain technology (Blockchain Technology – Complete Guide) traceability and certificate.

Physical NFT Examples

While the emphasis on physical NFTs has yet to take traction in the cryptocurrency space, the following are the best (and most successful) examples of physical tokens gaining traction:

Adidas Originals

In 2021, the German sportswear giant released an NFT collaboration with Bored Apes Yacht Club, a project whose NFTs sold for millions of dollars and were favored by celebrities like Jimmy Fallon, Eminem, and Paris Hilton.

In addition, buyers of Adidas Originals received exclusive physical merchandise such as hoodies, tracksuits, and beanies.

RTFKT Studios

RTFKT, which Nike recently bought, has been betting for a long time on physical NFTs that allow owners of non-fungible tokens to exchange them for real-world shoes quickly.

They call the NFT the “blueprint” for making things in the real world. In addition, RTFKT has frequently worked with other cryptocurrency creators to design various material items.


WENEW is an NFT platform that Mike Winkelmann (also known as Beeple), a pioneering digital artist, helped to start. Its goal is to sell “iconic” historical and cultural moments, like

Andy Murray’s 2013 Wimbledon win. NFT and digital tokens can be displayed on a physical screen that looks like it belongs in a museum.


The famous toy company Mattel worked with the entrepreneur Gary Vaynerchuk to make a physical UNO deck with characters from Vaynerchuk’s VeeFriends NFT.

Mattel has said it wants to keep exploring the “intersection between gaming, digital art, and collectability,” which could mean that more drops are coming.

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How do You Link-Up an NFT to a Physical Item?

What if You Want to Link an NFT to a Physical Item? How do You go about Doing So?

Let’s start with a physical painting for the sake of simplicity. It would help if you first made a “digital twin” of it. You can do this easily by photographing it with your phone or, even better, with a professional camera.

Once you’ve put your work on a computer, ensure that all the information (metadata) about the painting, such as sizing, technique used, author, and so on, is as precise as possible and adequately attached to the virtual file.

From here, you’ll select a reputable NFT marketplace, such as OpenSea, to mint your painting (here’s a quick primer). Smart contracts handle ownership and transferability of non-fungible tokens (NFTs) based on Ethereum, which most of them.

This helps to define the parameters of any transaction and any information related to the digital asset is stored on the blockchain where the NFT is managed. This coding connects your digitized painting, or NFT, to the real-life piece.

QR codes and NFC tags are frequently used as visible links. Nike, for example, has experimented with digital shoes with a unique identifier corresponding to a physical pair.

It’s important to remember that an NFT can’t be changed after it’s been minted, So you should finish up all the details, like coding, before creating digital assets and linking them to physical ones.

The Advantages of Physical NFTs

The ability to prove authenticity and provenance is the most significant advantage of creating physical NFTs. Nowadays, the counterfeit market is worth up to $500 billion. Physical NFTs can be a valuable tool for buyers and sellers.

In addition, because of blockchain technology, information attached to virtual assets and their physical counterparts cannot be changed, faked, or tampered with, resulting in a trustworthy data trail.

Another significant advantage is that it eliminates the middleman from transactions, giving buyers and sellers alike freedom and monetary rewards.

Finally, physical NFTs can be linked to recurring royalties, which means the seller can get a cut every time an asset changes hands.

The Difficulties in Connecting Physical Assets to NFTs

Physical NFTs, like any emerging technology, can have drawbacks. To begin with, there may be legal issues to contend with because the buyer of a physical NFT may need access to the actual copyright of the asset, preventing them from distributing, sharing, or even publicly displaying it in some cases.

Furthermore, it is possible to create physical support, such as a sculpture, and sell the NFT to one buyer while selling the physical item to another without the physical object being linked to the non-fungible token.

Then there’s the issue of fake sales, less-than-trustworthy sellers, and hackers, all of which marketplaces are attempting to address, but there’s a long way to go.


NFTs can have a wide range of digital and physical asset applications.

While most of us associate non-fungible tokens with big names such as CryptoPunks, the Bored Apes, or NBA Topshot collectibles, physical NFTs can extend to real-world, mundane areas such as the supply chain, where blockchain technology can provide traceability, authentication, and certification assurances.

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