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Nov 29 • 15 mins

The Rise of NFTs: Linking Physical Objects to Digital Assets

In recent years, the world of digital assets has witnessed a groundbreaking innovation known as Non-Fungible Tokens (NFTs). These unique digital assets have taken the art, collectibles, and gaming industries by storm, allowing individuals to buy, sell, and trade digital items that hold real-world value. But what if we could link physical objects to these digital assets? Imagine owning a one-of-a-kind watch or a bottle of wine that comes with an NFT, proving its authenticity and adding a new level of value and ownership.

In this article, we will explore the concept of linking physical objects to NFTs, examining how companies are leveraging this technology to revolutionize various industries. We will delve into the process of creating these fidgetals (a term used to describe digital representations of physical products) and discuss the potential implications and challenges of bringing real-world assets onto the blockchain. So let’s dive in and explore the fascinating world of NFTs and their connection to physical objects.

The Basics of NFTs

Before we delve into the realm of linking physical objects to NFTs, let’s start with a brief overview of what NFTs actually are. At their core, NFTs are unique digital assets that are built on blockchain technology, typically using platforms like Polygon or Ethereum. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged on a like-for-like basis, NFTs are indivisible and represent something unique, like a specific artwork, collectible item, or virtual land.

NFTs derive their value from scarcity, authenticity, and ownership. Each NFT is associated with a specific smart contract on the blockchain, which contains a unique number and a URL pointing to the digital representation of the asset. This digital representation could be an image, video, audio file, or even a virtual environment. By linking physical objects to NFTs, we can extend the concept of digital ownership to tangible items, opening up new possibilities for asset verification, provenance, and trade.

Linking Physical Objects to NFTs: A Game-Changing Trend

The ability to link physical objects to NFTs has sparked a wave of innovation across various industries. Companies are finding creative ways to combine the tangible and digital worlds, offering unique experiences and value propositions to their customers. Let’s explore some real-world examples of how businesses are leveraging NFTs to link physical objects and digital assets.

1. Luxury Goods and Collectibles

Luxury brands and collectibles marketplaces have embraced the concept of linking physical objects to NFTs, creating a new frontier for high-end auctions and ownership verification. For instance, auction sites like Nifty Mints have emerged as platforms where individuals can buy and sell high-end luxury goods and collectibles exclusively through NFTs. By digitizing the property title and uploading it to the blockchain, these platforms ensure that the buyer of the NFT becomes the legal owner of the physical goods.

digital assets for physical objects

One such example is the auctioning of rare Rolex watches. Companies can take their inventory of products, like Rolex watches, and create a directory to bulk upload them onto blockchain platforms like Polygon or Ethereum. Buyers can then purchase the NFT associated with the watch, providing them with proof of ownership and authenticity. This not only adds value to the physical watch but also creates a transparent and secure marketplace for luxury goods enthusiasts.

2. Music Festivals and Exclusive Experiences

The world of music festivals has also hopped on the NFT bandwagon, leveraging the link between physical objects and digital assets to offer unique perks and VIP experiences to their attendees. For example, the iconic Coachella Music Festival issued keys as NFTs to their owners, granting them access to backstage areas and VIP treatment. By linking these physical keys to NFTs, Coachella created a new level of exclusivity and collectability for their attendees.

DJ Khaled, a prominent figure in the music industry, expressed his enthusiasm for this trend, emphasizing the importance of owning something tangible in the digital age. This fusion of physical and digital realms allows music festivals to offer enhanced experiences while creating a secondary market for NFTs associated with exclusive perks and access.

3. Direct-to-Consumer Marketplaces

Innovative startups like BlockBar are disrupting the traditional wine and spirits industry by combining physical bottles of booze with NFTs. BlockBar positions itself as the world’s first direct-to-consumer NFT marketplace for wines and spirits. When purchasing a bottle of liquor from BlockBar, customers also receive an accompanying NFT, adding a layer of uniqueness and provenance to their purchase.

ND Labs, a software development company, has recently unveiled its own cutting-edge state-of-the-art NFT marketplace. This marketplace has been meticulously crafted to cater to the ever-growing demand for NFTs and can be seamlessly integrated into any industry. What sets ND Labs’ NFT marketplace apart is its adaptability as a white-label solution, enabling businesses to brand the platform as their own. With this innovative solution, ND Labs aims to revolutionize the NFT space and provide a powerful tool for businesses to leverage the potential of NFTs.

4. Transforming Everyday Items into Fidgetals

The concept of fidgetals, a term coined to describe the digital counterparts of physical products, has gained traction in the world of NFTs. Startups like offer services that help transform everyday items into fidgetals, making it easier for individuals and businesses to list their products and generate their digital NFT counterparts.

By leveraging platforms like, entrepreneurs and creators can focus on their core business while leaving the heavy lifting of NFT generation and listing to specialized services. This opens up opportunities for a wide range of products to be linked to NFTs, expanding the market for fidgetals and bridging the gap between physical and digital ownership.

The Implications and Challenges of Linking Physical Objects to NFTs

While the concept of linking physical objects to NFTs presents exciting possibilities, it also raises important questions regarding utility, ownership disputes, and the integration of blockchain technology into existing supply chains. Let’s explore some of the implications and challenges associated with this emerging trend.

1. Utility and Gimmicks

As with any new technology, the initial wave of linking physical objects to NFTs may be perceived as gimmicks or fleeting trends. However, it is important to distinguish between utility-driven applications and mere marketing ploys. While some companies may jump on the hype train without a clear value proposition, others are genuinely exploring the potential of NFTs to enhance ownership, provenance, and trade in their respective industries.

The rise of secondary markets for luxury goods and collectibles, music festival perks, and direct-to-consumer marketplaces for wines and spirits demonstrates that there is genuine interest and utility in linking physical objects to NFTs. As the market matures and more industries adopt this technology, we can expect to see a shift from novelty to practical applications.

2. Ownership Disputes and Representation

Linking physical objects to NFTs raises questions about ownership disputes and the representation of assets. While NFTs provide a digital proof of ownership, the legal frameworks governing physical assets remain rooted in traditional systems. For example, when it comes to real estate, ownership is determined by a deed filed in a registry, not simply by holding an NFT.

However, innovative approaches are emerging to address these challenges. Companies like Roof Stack are exploring the idea of putting real estate on the blockchain by creating a company that surrounds a specific property and transferring the equity of that company through an NFT. While these solutions are still in their early stages, they offer glimpses of a future where traditional ownership systems may coexist with blockchain-based verification mechanisms.

3. Supply Chain Transparency and Provenance

Another potential application of linking physical objects to NFTs is in supply chain transparency and provenance. Consumers are increasingly concerned about the origins and sustainability of the products they purchase. By assigning an NFT to each physical product and using unique QR codes, companies can provide customers with verified details about the product’s journey, from sourcing to production to distribution.

Jamaica Blue Mountain Coffee serves as an example of how this concept can be implemented. Each barrel of authentic Blue Mountain Coffee is assigned an NFT, allowing consumers to trace the beans’ origins and verify the entire production process. This not only guarantees the coffee’s authenticity but also satisfies the growing demand for ethical sourcing and supply chain sustainability.

However, it is important to note that implementing blockchain-based supply chain solutions requires buy-in from all stakeholders involved. While blockchain offers immutability and security, the level of detail and transparency required may not be a priority for every consumer. Balancing the benefits of blockchain-based supply chain solutions with consumer expectations and industry standards remains a challenge for widespread adoption.

4. The Circular Economy and Beyond

Linking physical objects to NFTs aligns with the broader concept of the circular economy, wherein resources are kept in use for as long as possible, reducing waste and environmental impact. By enabling the trade and ownership of physical objects through NFTs, we move away from the linear economy, where products have a limited lifespan, towards a more sustainable and efficient model.

For example, SpaceX’s reusable rockets revolutionized space travel by substantially reducing costs and combating planned obsolescence. Similarly, bringing physical objects onto the blockchain through NFTs can unlock new possibilities for asset financialization and trade. In the future, we might witness large consumer purchases, such as buying a house, being settled through NFT transfers, streamlining and democratizing the real estate market.


The link between physical objects and NFTs represents a game-changing trend that is reshaping industries and redefining the concept of ownership. From luxury goods and music festivals to direct-to-consumer marketplaces and everyday items turned into fidgetals, companies are exploring innovative ways to leverage NFTs for value creation and enhanced experiences.

While the journey towards linking physical objects to NFTs is still in its early stages, the potential implications and challenges are becoming increasingly apparent. Utility-driven applications, ownership disputes, supply chain transparency, and the circular economy are just a few areas where this emerging trend has the power to make a significant impact.

As technology advances and the market matures, we can anticipate a future where the ownership and trade of physical objects are seamlessly integrated with blockchain technology. Whether it’s verifying the authenticity of luxury goods, offering exclusive perks at music festivals, or ensuring supply chain sustainability, the link between physical objects and NFTs opens up a world of possibilities for businesses and consumers alike.

So buckle up and prepare to witness the continued rise of NFTs and the transformation of physical objects into digital assets. The convergence of the tangible and the digital is just getting started, and the future looks promising for those willing to embrace this groundbreaking technology.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial, legal, or investment advice. Always do your own research and consult with professionals before making any decisions.

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    About the author

    Dmitry K.

    CEO and Cofounder of ND Labs
    I’m a top professional with many-year experience in software development and IT. Founder and CEO of ND Labs specializing in FinTech industry, blockchain and smart contracts development for Defi and NFT.

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