P2P Digiphysical Secondary Marketplace

The idea of trying to make physical goods trustlessly exchangeable and verifiable + permanently linking it to an NFT is one of the earliest motivations of MetaFactory. This is the reason we embedded the hardware chips in the MF Bomber.

With NFT hackathons coming up, it’s time we started working on the execution of this. The plan was to have the hardware chips act as owners of a smart contract on chain that could hold multiple NFTs inside of it, one wearable for each world (cryptovoxels, decentraland, aavegotchi, etc). Then, the user could “lock” the wearable and prevent people from stealing NFTs if they have access to the physical jacket, while allowing them to “unlock” it when they want to sell it to someone else.

The new NFWallets standard helps get us closer to this vision: https://youtu.be/HlFPHBKrEJk

MetaFactory could use this standard to allow the jacket to hold onto other NFTs, DeFi positions, staked tokens, etc + enable a P2P secondary marketplace to make it easier for people to buy/sell rare physical goods as easily as rare digital goods. This can move beyond apparel and into 1-of-1 original paintings etc. And you could have staked ROBOT locked in the jacket which can’t be transferred on chain, but can be transferred in the physical space.

This is similar to the idea we had in the past with “charged particles” being NFTs that hold interest accruing DAI, except now you can do it with anything. Imagine a $3000 YFI jacket that comes embedded with a yVault worth $2000. The native meta transaction support of NFWallet means that physical goods could be peoples “fiat onboarding” into crypto and the metaverse (since it also includes wearables for cryptovoxels and others which leads users down that rabbithole).

The way the P2P marketplace would work:

  1. Signup to marketplace with BrightID. Helps prevent Sybil attacks and minimizes the chance that someone would try to scam.
  2. Seller scans the chip to verify ownership and marks the NFWallet as “for sale”, creates a listing on the marketplace (standard ask price + offer like you have on OpenSea)
  3. When the wallet is in sell mode, anyone who sends the asking price to the contract will automatically have themselves set as the owner of the NFWallet and receive immediate access to the assets inside. The contract call will also include an IPFS hash pointing to a PGP encrypted message containing the shipping address that only the seller can decrypt.
  4. The payment will be forwarded to the seller immediately
  5. The seller and buyer are now responsible to coordinate the shipping between themselves. No refunds, no escrow, etc.

Eliminating the middleman is extremely difficult when dealing with online P2P commerce. Normally you need to escrow the funds, have a full time staff to handle dispute resolution, act as custodian / verifier of the physical goods, etc. This design allows us to eliminate all of that. BrightID for Sybil resistance goes a LONG way to prevent scammers. The embedded chip is trustless proof of authenticity and ownership. The smart contracts allow for instant/trustless P2P value transfer and asset handover. The NFWallet gives infinite flexibility for future proofing these things for the metaverse that is to come, the possibilities are absolutely endless and I can’t begin to imagine all the use cases that would be enabled when you have a Turing complete smart wallet attached to a physical good. When conferences open up again and people can exchange these things IRL, the impact on crypto culture would be electric.

This is exactly in line with the ethos of KONG cash (which our A hoodie that owns an aavegotchi and CV wearables and staked ROBOT. A resin art piece that holds SANDBOX land. Collabing with other projects builds our community most and is an excellent way to get the flywheel spinning and grow the platform.

Who wants to build this? I have a clear path to implementation now, just need some heavy hitters to help execute. A lot of potential ROBOT up for grabs here.


I agree this a great path for us to take.

Just like when people proc generated art with bitcoin embedded into the art. Digi-physical goods backed with stable and/or volatile token stored on a cold wallet is NFMazing! I agree with the potential and direction.


This is so cool! Is this considered to be a short/mid-term project or more like a hackathon submission (e.g. for Untitled NFT Hackathon)? In case it’s the former, what’s the weekly time-commitment you expect for this project? I’m interested in helping to build this but I need to check if I would have enough bandwidth

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Love it. We can also build financial backed incentive in the products.
By including ERC1155 conditional tokens in the product’s NFWallet, it can drive real would behavior based on incentive.


  • Environmentally friendly products are are free to the consumer if carbon emissions are reduced by X.
  • Artist designed products where the art is 50% cheaper if a future artist sale happens over a price of $X.
  • etc.

Yooo this NFWallet is wild, it’s like genetically modified Charged Particles. I think it’s an awesome idea and should definitely try it out. Given we only have 1 chip-enabled product is this something we want to spend resources on at the moment? I’m free so I can help out with this but I could also build the new site, help with ops, or any number of things that MF core team thinks is important.

Double Spending Concern
Is there someway to ensure that after the current owner scans the chip, they don’t sell the jacket in meatspace without the NFWallet? There is no doubt that people won’t know/care about the NFTs and just want the jacket so double spending is an inevitability. Your proposed design is as good as we’ll get for now but I think we should acknowledge it’s an impossible problem without escrow. Even if we incentivized a third party escrow, what’s to stop them from stealing the physical merchandise? Lawsuits and criminal charges are possible if we require a government IDs on BrightID but we have to contend with cross-jurisdiction and legal loop holes across countries.

Man, meatspace is hard :hot_face:.