Looking around the world, there are still very few Web3 applications with a large number of users. There may even be only Bitcoin, which is barely the most well-known Web3 application with the largest number of users.

Stay away from “pseudo-Web3 applications” disguised as Web3

A healthy GameFi project will have a complete internal and external circulation ecological mechanism, such as obtaining real external benefits through commercial cooperation such as brand co-branding. In the GameFi project, which relies on the Ponzi model for user growth, the benefits of early users come from the principal invested by later users. If the income side of the project cannot keep up with the growth rate of the liability side, then collapse is only a matter of time.

It’s time for us to return to the value essence of Web3

 

The success of Web3 applications benefits from the digital element foundation of "freedom" and "trust", coupled with the verifiable business logic. All three are indispensable. Based on this, the "Unicorn Growth Index" of Web3 applications is proposed (" Unicorn Growth Index" of Web3 applications)

 

Phygital Application

Degree of freedom index: ☆☆☆

Trust index: ☆☆☆☆☆

Business model verifiable indicators: ☆☆☆☆☆

Web3 Unicorn Growth Index: ☆☆☆☆☆

For crypto-native and Web2 brands in fashion and entertainment, Web3 offers an opportunity to bring digital and real-world items and experiences to their audiences. This new popular pairing of the physical and digital worlds has led to it having its own word: phygital.

"Phygital" means "Physical" + "Digital", which is the combination of physical environment or tangible objects and digital or online technology-driven experiences. It was first proposed by the Australian marketing agency Momentum in 2013.

We believe that, more broadly, physical projects with digital representations and digital projects that can affect the physical environment or tangible objects can be called Phygital applications. They represent a broad category of Web3 that enables blockchain developers to develop new ways to combine the physical and digital worlds.

In 2022, luxury jewelry company Tiffany partnered to launch "NFTiffs" to CryptoPunks holders, with a physical diamond pendant as a gift. 250 NFTiffs sold out within 20 minutes of their debut, netting the company $12.5 million. The creation of this "phygital" project is an innovative business attempt by luxury goods to Web3.

In December 2021, NIKE announced the acquisition of the virtual fashion brand RTFKT and made it the fourth independent brand in addition to its own brands Nike, Jordan, and Converse. It is enough to see that Nike has elevated NFT construction to the level of brand strategy. RTFKT is creating a physical sneaker that uses Nike's electronic shoelace Adapt technology. Consumers can further redeem the corresponding physical shoes after purchasing virtual shoes.

NBA Top Shot is a blockchain collection game jointly created by the NBA, NBPA and Dapper Labs. It aims to turn the highlight moments of stars in NBA games into tradable digital game cards. In other words, paper card exchanges that fans once had to do offline can now happen online anytime and anywhere.

In addition to the above fast moving consumer goods and luxury goods, the financial physical card business is also trying to connect with Web3. Visa and Mastercard team up with different Web3 companies to develop cryptocurrency debit cards. For example, Blockchain.com will work with Visa to launch a debit card that will be linked to customers’ crypto accounts. There will be no fees for debit card transactions and users can get 1% cryptocurrency cash back.

By combining the physical and digital worlds, phygital drops are no longer just about buying items for display, but about creating something more by bringing pieces of the real and virtual worlds together to create unique experiences.

Although the current combination of physical and virtual products is only in the early stages of Phygital products, relying on the convenience of social sharing, DIY, etc. derived from virtual products, we can also get a glimpse of the huge energy generated by the combination of Phygital and Web3.

Currently, Phygital application solution providers worthy of attention include:

RTFKT Studios: (@RTFKT) uses the latest game engines, NFTs, blockchain authentication, and augmented reality, combined with manufacturing expertise, to create one-of-a-kind sneakers and digital artifacts.

Dapper Labs: (@dapperlabs), the company behind well-known projects CryptoKitties, NBA Top Shot, NFL All Day, UFC Strike and Flow Blockchain, uses blockchain technology to bring NFTs and new forms of digital to fans around the world Participate in the digital world, paving the way for a more open and inclusive world starting with games and entertainment.

Metcalfe’s law diagram

Source: "MICROFINTECH: Expanding financial inclusion through cost-cutting innovation"

DroneLink: (@Dronelinkai) is a decentralized media platform on the air, dedicated to becoming the producer of hot events. It has a low carbon footprint and has an established web3 team behind it. Through the NFTization of physical drones, the drone fleet is fragmented and becomes a model project combining physical + web3 that everyone can participate in. It is reported that the project token has been issued, and currently all new addresses can obtain free MINT token DRONE on the official website.

The project team completed the Drone Show in Dubai on January 5th, making the first web3-themed aerial show. For more information, please visit www.dronelink.ai for free MINT.