Phygitals
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Phygitals Mint Overview
The Phygitals Mint allows businesses and creators to sell physical goods directly through the Swop platform, with an integrated blockchain-based system that ensures security and transparency for both buyers and sellers. Phygital items are particularly well-suited for clothing brands, merchandise, or any business dealing with physical products. This mint type operates with an escrow system where payments are held until the buyer confirms receipt of the goods, providing an additional layer of trust similar to Alibaba’s system.
Use Cases:
Clothing and Apparel: Clothing brands can sell physical products like shirts, jackets, or accessories through Swop’s Phygital Mint, ensuring secure transactions and buyer protection with the escrow system.
Physical Merchandise: From branded merchandise to limited edition physical items, businesses can mint phygitals, providing a safe and trusted environment for buyers to purchase physical goods.
Phygital NFTs: Brands can combine physical goods with digital tokens (NFTs) to create hybrid phygital items. These products could include a physical item (like a shirt) paired with a digital version of the product or exclusive digital content.
Transaction Flow:
Minting the Phygital Item:
Sellers use the Phygitals Mint template to create a listing for the physical product. Each item is embedded with metadata on the blockchain, and the product is listed for sale on the seller’s Smartsite.
Sellers set the price, quantity available, and other details for the product (e.g., size, color options, shipping policies).
Buyer Purchase:
Buyers visit the seller’s Smartsite, select the phygital item, and complete the purchase using fiat or cryptocurrency. Payments are processed through Crossmint, converting fiat into USDC.
Unlike other mint types, for phygitals, the USDC is sent to an escrow wallet rather than directly to the seller’s Swop.ID.
Escrow Wallet:
The funds sit in the escrow wallet after the purchase is made. This money is held securely until the buyer either confirms receipt of the physical item or 60 days pass without a confirmation (whichever comes first).
During this period, the seller ships the physical item to the buyer, and both parties can monitor the transaction status through the Orderflow Dashboard.
Confirmation of Goods:
Once the buyer receives the physical item, they can confirm its arrival through the Swop app. Upon confirmation, the funds are released from the escrow wallet to the seller’s Swop.ID, completing the transaction.
If the buyer does not confirm the receipt but does not dispute the item either, the funds are automatically released to the seller after 60 days.
Dispute Resolution:
If the buyer receives an item that does not meet the expected quality, is damaged, or otherwise not as described, they can file a dispute directly through the Orderflow Dashboard.
Filing a dispute triggers the transfer of funds from the escrow wallet to a dispute wallet, where the funds are held until the issue is resolved. Sellers are notified immediately and can communicate with the buyer through the dashboard to negotiate a solution.
Swop’s protocol oversees the dispute process, ensuring a fair outcome for both parties. Depending on the outcome, the funds are either released to the seller or refunded to the buyer.
Escrow and Dispute Management:
Escrow Wallet: All funds for phygital purchases are held in the escrow wallet until either the buyer confirms receipt of the goods or the automatic 60-day release period passes. This ensures that sellers are only paid once the buyer has received the product, offering a layer of security for the buyer.
Dispute Wallet: If the buyer files a dispute, the funds are moved from the escrow wallet into a dispute wallet, where they are held while the issue is investigated and resolved. This prevents the seller from accessing the funds until the dispute is settled.
Automated Release: If the buyer takes no action (neither confirming receipt nor disputing the order), the funds are automatically released to the seller after 60 days, ensuring the transaction is eventually completed.
Benefits of the Phygitals Mint:
Secure and Trustworthy Transactions: The use of an escrow system ensures that buyers’ funds are protected until they confirm receipt of the physical goods. This adds a layer of trust to the transaction, particularly for high-value or unique items.
Built-In Dispute Resolution: If something goes wrong, buyers can file disputes through the Orderflow Dashboard, and the funds are securely held in the dispute wallet until the issue is resolved, ensuring fairness for both parties.
Lower Transaction Fees: Swop’s blockchain-based payment system provides lower transaction fees compared to traditional e-commerce platforms, helping businesses keep more of their revenue.
Seamless Integration with Smartsites: Sellers can list their physical goods directly on their Smartsite, making it easy for customers to browse, order, and pay within one platform.
Automated Payments: Once the buyer confirms receipt of the goods, the funds are released instantly to the seller’s Swop.ID, ensuring fast and efficient transactions.
How It Works in the Orderflow Dashboard:
Order Management: Both buyers and sellers can monitor their phygital transactions in real-time through the Orderflow Dashboard, where they can track the shipping process, confirm receipt, or initiate disputes.
Communication: The dashboard provides a communication interface where buyers and sellers can discuss orders, arrange shipping details, or resolve any concerns before filing a dispute.
Dispute Tracking: If a dispute is filed, both parties can track the progress and resolution process directly within the dashboard, ensuring transparency and fairness throughout the dispute handling process.
The Phygitals Mint is the ideal solution for businesses looking to sell physical goods securely and transparently. With an integrated escrow system, customizable Smartsite listings, and built-in dispute management, Swop provides a comprehensive and secure way to manage the sale of physical items online. This mint type ensures trust for buyers, easy payments for sellers, and a seamless experience for all parties involved.
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