What are Physical NFTs? How to Sell Physical Items as NFTs

Non-fungible tokens (NFTs) continue to grow in popularity, making it hard to escape the phenomenon. As NFTs make their way to the mainstream, they come in the form of digital art, fashion, music, and the metaverse. However, physical NFTs are also carving out space.

So, what exactly is a physical NFT? Is there a way to sell physical items as NFTs? Let us find out.

What are Physical NFTs?

NFTs are linked with the art world and are also issued and sold as a virtual representation of off-chain assets, which include antiques, consumer goods, and collectibles. However, physical NFTs act as a cryptographic token of ownership over a physical item for the buyer. This happens when the buyer wants a physical version of the NFT. A physical NFT is a non-fungible token connected to a physical asset.

They use blockchain to verify a physical item’s ownership, authenticity, and scarcity. They are unique tokens representing anything from a painting to a pair of shoes. In this way, collectors can own and trade physical items as digital assets.

Since physical NFts are linked to real-world assets, they are also known as phygital NFTs. And as with any other NFT, physical NFTs can also be solely or redeemed for the physical asset they are connected to.

How do Physical NFTs work?

In most cases, a physical NFT consists of two parts: one refers to the physical asset, and the other implies the digital asset has been issued on a blockchain. The physical assets are generally connected to a corresponding unique identifier, including a QR code or a near-field communication (NFC) tag.

Additionally, physical NFTs contribute to the authentication of non-fungible tokens and are useful in supply chain management. With blockchain technology traceability and certificate, allowance becomes easier for physical NFTs.

Advantages of Physical NFTs

  1. NFT assets and projects are vital in the crypto industry. With physical NFTs, apart from improving an individual’s collecting experience, they also serve specific purposes that no other token does.
  2. They add a layer of transparency- They can add a layer of authenticity, as they are connected to tangible artworks and collections. These purchases must have a unique QR code programmed to authenticate the physical object.
  3. It has a wider target market reach- the current market is digitally inclined. As such, combining NFTs with physical counterparts will likely appeal to them and a wider demographic.
  4. They assist in avoiding the Spread and using fake products- A physical NFT provides extra protection against counterfeit products that consumers purchase. Tangible items have trackable histories that are stored in chips or QR codes.

Some Examples of Physical NFTs

Some brands manage to create very successful campaigns with physical NFTs. Here are the best physical NFT campaigns that are making some serious waves.

1.  Adidas- Into the Metaverse

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In 2021, Adidas, the German sportswear company, made its way into the world of the metaverse. This came by putting out an NFT collaboration with the famous Bored Apes Yatch Club. 30,000 Adidas original NFTs were put up for grabs and sold out within minutes of its public launch.

In 2022, the company presented a fusion of digital and physical merchandise. When holders claim a physical product, their NFT is burned. In return, they receive a physical product and a replacement NFT with an increased phase number. Physical NFTs come as a great opportunity for Adidas.

2.  Gap

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In 2022, retail giant GAP launched its first NFT collection. For its release, the fashion brand launched an NFT hoodie art that unlocks physical clothing. As the first drop, GAP collaborated with Brandon Sines, the artist behind the Frank Ape cartoon. The collection is hosted on the Tezos blockchain, which uses an energy-efficient algorithm.


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RTFKT creates next-generation sneakers and collectibles for the metaverse. On top of creating some of the craziest prices of digital art, the meta-brand always pushes the limits of what’s already out there and makes every drop a unique experience.

How to sell Physical items as NFTs

Step 1: Choose the physical items you want to sell as an NFT. It can be anything from a painting to a rare pair of sneakers. The key is to ensure that the items are unique and have value.

Step 2: Create a digital version of the physical item. It can be a photograph, a 3D model, or a video. The digital version will be used as the representation of the physical object on the blockchain.

Step 3: Mint the NFT. Minting the NFT means creating a unique token on the blockchain representing ownership of the physical item. Various NFT marketplaces allow you to mint NFTs, including OpenSea, Rarible, and Nifty Gateway.

Step 4: Add metadata, which is the information about the physical item, such as the title, description, and image. The data is stored on the blockchain and is used to provide additional context about the NFT.

Step 5: Verify ownership and authenticity. This can be done by including a certificate of authenticity or a blockchain-based certificate of ownership. It proves that the physical item is authentic and connected to the NFT.

Step 6: Sell the NFT on any NFT marketplace or through a private sale. Be sure to give out info about the physical item, including its condition, provenance, and history.

Final Thoughts

Blockchain technology and web3 continue to evolve. As such, physical NFTs have the potential to seamlessly bridge our digital and physical lives by changing how we interact with real-world items. Physical NFTs offer a whole new world of possibilities, whether you want to add a unique piece of art to your collection or are interested in investing in a new asset class.

With the launch of some high-profile platforms and initiatives, we can see that this is just the beginning.

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