The integration of chip technology and onchain 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.

1. THE NEXT BIG THING
AFTERNFTs
PHYGITALS
LIVEPLEX MARKETING TEAM
2023/2024

2. The integration of chip technology
and onchain 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:
Facilitate onchain inte ractions in
p hysical e nvironm e nts: Embedding
scannable hardware enables consumers to
verify 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.
Em p owe r consum e r p rod ucts with
ag e ncy and re p utation: 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, it can
be sold with its history intact and priced
accordingly.
Cre ate a nove l d istrib ution channe l for
issue rs: 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.
Unlock full-stack utility for consum e rs:
Owners of Phygital products can derive
value from the good in both the physical
(wearing the item) and digital (flex
ownership, early access rights, exclusive
content) realms.
WHAT IS PHYGITAL
(c) LIVEPLEX
Cryptocurrency has revolutionized the
field of interaction design for consumer
experiences. Historically, efforts to
represent physical goods on the
blockchain have been led by
cryptonative brands, focusing on high-
end fashion items for authenticity and
provenance. However, most onchain
activities, such as NFT minting,
attesting, trading, and equipping, have
been confined to digital contexts.
There is significant potential to extend
onchain interactions to physical
environments through Phygital
consumer goods. This Phygital
infrastructure will likely enable
programmable utility for any physical
product soon.
Cryptonative Phygitals refer to tangible
items that are cryptographically
connected to their digital counterparts
on the blockchain through Near Field
Communication (NFC) technology.
This digital
twin can be a
Non-Fungible
Token (NFT), a
registry entry,
or an onchain
identity
equipped with
signing
capabilities.

4. istorically, the concept of Phygitals predates
the advent of cryptocurrency. Initially, they
were physical items paired with a digital
version; for instance, vinyl records that
included digital download codes or hardcopy
books accompanied by a PDF version. While
this pairing allowed consumers in multiple
ways to access and use the content, there was
no strong connection between the physical
and digital elements. Often, they were
regarded as supplementary extras and, as a
result, were commonly left unutilized.
In the initial stages of cryptocurrency
development, preliminary trials included
selling “Digital Twin” products without
embedded chips and utilizing onchain
processes such as burn-to-redeem. This
required the owner to either burn or exchange
the NFT to obtain a physical item or to receive
an NFT add-on following a physical purchase.
Much like the earlier bundled products, these
initial “digital twin” offerings did not consider
the digital and physical components as
essential to one another but rather as
supplementary options.
While both forms of physical-digital bundling
offered incremental benefits to consumers,
there was only a loose coupling between the
physical and digital products. Each good
could theoretically be sold separately without
losing its intrinsic value or utility.
In embedded chips, the capability for onchain
programming has facilitated a close
interconnection between a physical item and
its onchain documentation and ownership
rights. As a result, the physical and digital
aspects are no longer separate entities but
rather two interconnected dimensions of a
single unit. The physical item allows the
owner to access or modify its onchain
documentation or utilize the affiliated rights
through interactions in the real world.
PHYGITALS ON AND OFF-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 emerging
design possibilities.
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 physically while the bank maintains
a digital record of card usage and associated
perks.
PAST AND PRESENT PHYGITALS
H
(c) LIVEPLEX

5. 3. 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. A mobile app
can manage and update the balance
and access rights.
4. 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.
CRYPTONATIVE
PHYGITALS
Cryptonative Phygitals introduce
programmable interactivity to any
consumer product for various financial,
social, and entertainment use cases.
(c) LIVEPLEX
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. Still, 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 :
1. Sm a rt Ca rd s: These are physical
card s (like cred it or d ebit card s) that
are linked to a d ig ital wallet. The card
can be used for contactless payments,
while the d ig ital record keeps track of
the balance, transaction history, and
access rig hts. The d ig ital wallet can be
recharg ed online, and the physical
card 's balance is upd ated in real time.
2 . We a ra b le De vic e s: Devices like
smartwatches or fitness band s allow
users to make contactless payments.
The wearable d evice is linked to a
d ig ital account with the user’s
payment information, access rig hts,
and spend able balance. When a
payment is mad e using the wearable
d evice, the transaction is record ed in
the d ig ital account, and the balance is
upd ated accord ing ly.
These objects can
be carried or worn
(e.g., clothing
items, POAP
cards) or tied to a
stationary object
(e.g., artwork in a
gallery,
collectibles). They
can be scanned to
retrieve their
ownership
history, proof-of-
authenticity,
historical
interactions, and
associated utility.
Their onchain
record makes the
interactivity
composable,
allowing anyone
to distribute
rewards and grant
rights to any
goods without
gated APIaccess.

6. hile the widely accepted notion of the metaverse
is often associated with a virtual reality world
reminiscent of ‘Ready Player One,’ where humans
and objects have distinct ‘digital twins,’ we
propose a different perspective. We believe the
metaverse will more likely encompass physical
objects and spaces integrated with onchain
records, providing comprehensive utility across
physical and digital realms.
CREATOR MONETIZATION
& FAN ENGAGEMENT:
1. Enhanced Merchandise Interaction: Creators
can convert any physical merchandise into loyalty
cards that hold value after the purchase,
transforming merchandise into a direct conduit
between creators and fans and nurturing stronger
bonds within the creator -fanbase ecosystem. This
interaction is not only customizable but also
continuous.
2. Fan Classification: Currently, artists have
restricted access to information about their fans
because third parties manage ticketing and
merchandise sales. By distributing Proof of
Attendance Protocols (POAPs) at events and
capturing real -life interactions, such as taps and
scans, creators can comprehensively understand
their most actively engaged fans.
3. Customized Incentives: By utilizing
merchandise embedded with chips and
scannable event kiosks, creators can reward
their fans directly. This enables fans to establish
their community reputation, as real -world and
digital participation are documented on the
blockchain. Accumulating loyalty points by
wearing chipped merchandise to multiple
events can be scanned to gain early access to
future show tickets.
TOKENIZED
COMMUNITIES:
1. Proof of Connection & Social Games:
Products designed for individuals to carry, such
as clothing or cards, can facilitate connections
between community members during in -person
meetings. This also enables new types of games
centered around in -person connections, e.g.,
9dcc Network Points.
2. Social Graphs: “I met” POAP transfer activity
creates a bottom -up social graph that reveals
which events community members attend and
identifies the most “connected” members. This
can serve as a primitive data point for
distributing rewards to the most active
community evangelists at events.
USE CASES PHYGITALS
W
(c) LIVEPLEX

7. PHYGITAL
INTERACTIONS
1. XRL Gam e p lay: On-chain
games can introduce IRL quests
by chipping physical products
and updating their records as
players interact in the real world.
For example, Loot LARP was an
XRL LARP experience at NFT NYC
2022, where players fought each
other with weapons embedded
with Kong chips. Points were
recorded on the weapons after
the interaction.
2. Live Minting: Galleries can
d esign interactive minting
experiences at physical locations
by having g uests scan a chipped
d isc to purchase ed itions of
d isplayed artwork or mint a
g enerative piece.
3. Tokenized Guestbooks:
Audiences can record their “proof
of presence” in a d ig ital work. NFT
metad ata could upd ate with each
message from someone who has
been in close proximity to it.
The future of Phygital consumer
g ood s and experiences is
exciting. Expect that the next big
changes will be :
. Consum e rs will soon e xp e c t
that c re ator and c om m unity
m e rc h b e c hip p e d and ab le to
inte rac t with the m in IRL e ve nts
to ac c e ss future re ward s.
. DAOs and c ryp tonative
c om m unitie s will start using
p hyg itals in the form of c ard s to
p e rform op e rations like c o-
sig ning and p aym e nts.
. NFTs will inc re asing ly b e use d
to re p re se nt owne rship of a
p hysic al asse t thanks to
toke nization and vaulting
p rotoc ols, b ring ing the c ost and
sp e e d of trad ing d own to that of
p ure ly d ig ital asse ts. We will
also se e toke nize d RWAs like
c olle c tib le s, and hig h-e nd
fashion ite m s b e ing le ve rag e d
in NFT financ e p rotoc ols.
DECENTRALIZED
AUTHENTICATION
AND PROOF OF
OWNERSHIP
1. Luxury Goods & Collectibles:
Traditional authentication systems
for luxury goods, art, and high -end
collectibles rely on centralized
servers. Onchain authentication
standards using chips enable
physical products to self -attest their
authenticity even if their issuers
cease to exist. Once scanned, there
is a transparent record of the chip
manufacturer, the brand that issued
the product, and the associated
rights.
2. Comprehensive Flexibility: By
adopting standards such as
physical -backed NFTs, brands
can connect a physical garment
and a digital wearable, enabling
owners to utilize them across the
physical -digital spectrum. The
token standard ensures a close -
knit relationship between the
NFT and the physical items,
allowing owners to demonstrably
assert their ownership across
both digital and physical realms.
3. Cryptographic Autographs:
Cryptographic autographs can be
implemented by any brand, artist,
or creator who is already using
blockchain technology or NFTs
to sell and distribute their work.
They would simply need to
include a digital signature or
unique identifier that could be
verified on the blockchain to
prove its authenticity and
ownership. This would make the
autograph a unique and verifiable
asset that could be traded or
sold, just like a physical
autograph. For example, the
KrauseHause Metafactory jacket
that basketball players can tap
and sign digitally.
3. Payments & Co -Signing: Physical
items capable of producing
cryptographic signatures could
serve as signers for a multisig for
contactless payments as a DAO
member. This could be a
membership card, hoodie, bracelet,
or any other item.
(c) LIVEPLEX

8. get
webthree
EASY .XYZ
TALK TO US AT hello@liveplex.io
LIVEPLEX.XYZ