NFTS DIGITAL TWINS- WHAT THEY MEAN FOR A BRAND?

As we are moving from Web 2.0 to Web3, technological uses such as NFTs digital twins are proving their worth. Digital twins, being one of the most interesting features of the 4.0 industry aligns perfectly with NFTs. It is even more, because Non-Fungible Tokens (NFTs) came to complete what constituted the concept of digital twins, by giving them a value beyond the digital.

A definition

Non-fungible Tokens are unique and un-duplicatable digital assets based on the blockchain. The blockchain enables NFTs to be fully traceable, transparent and immutable throughout their life cycle. With NFTs, each holder owns a unique piece of code that can be traced through its history. And this digital asset data cannot be modified or deleted. NFTs have value in their own right and cannot be copied. Then the smart contracts will in turn allow the automation of processes and operations related to the creation and exchanges of an NFT.

NFTs digital twins on the other hand, are about creating a digital copy of the real world. They are virtual copies of physical products, assets, or systems that share their data with the original physical version. This can be applied to any object imaginable. Each digital twin includes the assets that represent systems, products or services, processes of firms and any other physical things that can be modeled digitally using virtual reality or 3D modeling technology. The representation is achieved by creating models based on the physical data assets.

What is the difference between Tokenization and digital twins?

An NFT being a certificate of ownership tracing every asset data with the blockchain mechanism, represent a physical property in its whole. Any good can be turned into a dematerialized asset. But the difference is that tokenization does not mean turning a whole physical object into a token, while a digital twin is the perfect digital replica of a good. With tokenization, it is possible to add elements to the token, while a digital twin is just a digital duplicate of a physical good. As an example of tokenization, we have as mentioned in our article about 2022 NFTs trends, the emerging NFT wind having carried some industries.

The notable movie director Quentin Tarantino has for instance auctioned seven original scenes from his well-known movie Pulp Fiction as NFTs. However those Tarantino’s NFTs also involved a handwritten text of the first scripts of the film as well as the comments of the director himself. only the holder of one of those NFTs had the chance to get the full picture of this NFT content. This process is a tokenization. An NFT digital twin on another note in this case would have been just the unique digital duplicate of this movie. NFTs digital twins are very relevant in Fashion industry for example, because they will simplify a lot of processes.

What is their real use?

The use of NFT digital twins in the garment industry in particular is changing. There are many companies that have started working on digitizing their products through the use of NFTs. This new concept has led to various innovative solutions for brands to adopt NFT for digital product data management. The digital twin is a virtual representation of a physical product that has several advantages for both product manufacturers and users.

Two main advantages of NFTs digital twins

Before, a product’s digital twin could only be once the physical model had been created. As of now, with NFTs, a digital twin can be made at any point in the cycle of production or sale, including before the creation of small samples that are designed to test different aspects of the final product such as fit, shape or color. It can then be used to evaluate any potential risk before manufacturing begins. This can lead many brands to improve their production decisions and choices. and more than that, NFTs digital twins provides brands with the following incentives:

  • Reliability

NFTs digital twins can provide trusted service when it comes to authenticity, sustainability and users’ trust. Through digital twins, brands can reveal their commitment to transparency and sustainability practices, giving visibility to the supply chain and bringing trust in the certifications of the product. Digital twins are a powerful way for businesses to showcase the long-term value of their products and their authenticity every step of the way.

Talking about reliability brings up the real problem around retail or luxury fashion in general: counterfeiting. Counterfeit goods cause harm to brands, consumers and society as a whole. In fact and according to the OECD, the global trade in counterfeits is estimated at 3.3% of the world trade in 2019. So to gain credibility towards its consumers, a brand must really be careful and protect themselves against counterfeiting risks. Luxury brands, as well as the sneaker industry are known to be the first victims of it.

Still in 2019, counterfeiting revenues were estimated at $464 billion according to the European Union Intellectual Property Office. The most counterfeited products were those from the tannery, cosmetics and perfume industries. This situation has a knock-on effect on brands, unwillingly bearing the stigma of a poor-quality brand and the responsibility of a disastrous customer feedback. Even in the case the counterfeit good comes in good quality, there’s still a defiance in terms of trust. The buyers want to get the product brand they paid for, with real brand signature. Having a good quality product not coming from the desired brand is remains counterfeiting, and breaking the buyer’s trust.

Digital Twins in the forms of NFTs come as the outcome of this trust issue. Having a certificate capable of displaying any transaction related to a product is the best to protect objects from counterfeiting. In this way, they can help brands prevent themselves from falsifications with the blockchain system. Each product can have a digital twin so that the manufacturing process is retraced and the product authenticity proven.

Moreover, they allow product owners to better use their commodities, while offering innovative services on top. NFTs digital twins can offer a range of new services to customers and remain relevant as the digital transformation of a company progresses. It is an opportunity for brands to establish a relationship with customers, even when they no longer own the product. Both customers and retailers can benefit from this feature. Buyers can see online what they’ve purchased or even find out where it comes from.

  • Exchangeability

As NFTs become more prevalent and secure, digital twins are expected to enable new kinds of trade between humans and computing systems. They facilitate various applications such as scarcity and exchangeability. NFTs are designed to be secure, with the goal of adding value, not simply being a currency.

The emergence of digital twins has opened the door to an entire new world of exchangeable digital assets. Brands can benefit from being able to use NFTs to create new business models with proven demand. And with the right infrastructure in place, secondary sales can be done seamlessly. Digital twins provide further trustworthiness in transactions with a secure environment where buyers’ rights are ensured while still allowing the resale of goods, a feat which was not possible before. Buyers can rely on guarantee, certainty and safe transactions in case of reselling their items, knowing they are legit and have the real product, while brands can still get royalties from this resale.

Some use cases of NFTs digital twins

Nike

Nike featured Cryptokicks NFTs, so digital twins real sneakers. It gives the opportunity to possess a sneakers, both physically and virtually.

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Cryptokicks by Nike

Gucci

Another great example of a digital twin could be what Gucci brand has done. They put up for sale in the metaverse game Roblox, a limited Gucci collection of bags, accessories, designed to dress the game metaverse avatars. In this Gucci virtual store, some digital twin bags were available for sale, at prices much lower than those in real life. To amply the scarcity, Gucci released a limited edition of these virtual bags for sale, which caused their price to skyrocket and resold at a higher price than the physical version.

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Gucci bag in Roblox metaverse

Dolce & Gabbana

Dolce & Gabbana brand on the other hand has introduced its Collezione Genesi. It consisted of 9 NFTs up for sale on the UNXD platform. The buyers received with their physical item, an NFT digital twin and an exclusive access to Dolce & Gabbana events. Profits from this NFT activation raised to $5.65 million.

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 D&G Collezione Genesi NFT item as a digital twin

The role of METAV.RS in the creation of digital twins for brands

METAV.RS being a solution for brands to create enriched metaverse experiences, provides them with an automated tool allowing the quick and easy creation of digital twins in the retail and fashion sectors. Just with the help of photos taken from several angles of a product, it will be possible to quickly and independently recreate its 3D model from the dedicated platform. A studio is completely dispensable for small to medium scale products. A mere Smartphone is enough to take pictures and obtain quality 3D models of products.

The METAV.RS 3D reconstruction tool is intuitive, fast, easy to use and fully automated. It is a tool that works on the principle of photogrammetry. It is a technique that relies on the perspective and modeling of the contours, shapes and dimensions of an object (or a place) to allow its reconstruction in 3D as accurate as possible, using photographs taken from different angles.

The interest is to update its products in a continuously connected universe. By doing so, a brand will extend the customer experience into its virtual universe. It is giving the consumer the possibility to find the brand’s products in a multitude of environments. The brand in the metaverse will be able to reproduce the experience of the physical store to its user.

For a brand, the 3D reconstruction of products is also a way to recreate an interactive experience from the virtual for its consumers, and to create digital twins of its products. It gives the brand the opportunity to enhance its physical assets by transforming them into digital assets, which can be changed into NFT. The 3D reconstruction will allow to strengthen the user experience by the continuity that is created between the real world and the virtual world.

 

Digital twins are leveraging new technologies to create unprecedented levels of trust between consumers, manufacturers, resellers and service providers. They will also decrease counterfeiting, increase product safety and improve customer experience. Digital twins provide an unprecedented level of transparency, trust and security throughout the entire product life. It is the next step in blockchain technology, offering a new way of valuing goods and services.

To learn more on NFTs and how they can be implemented on tomorrow metaverses, read DIFFERENT TYPES OF METAVERSE

Or download our white paper ENTERING IN THE WEB 3.0 – A GUIDE FOR LUXURY FASHION IN THE METAVERSE